Cameron Parry, CEO of Tally is the first employer in the country to switch his payroll to gold bullion, decimating consumer spending power. Mr Parry shared the reasons behind this move and how it essentially gives staff more for their money.
He said: “With the cost of living crisis going from bad to worse, it didn’t make sense to continue offering pay hikes in pounds when its value is being eroded further with every passing day. It was like putting a bandaid over an open wound.
“We’re seeing the spending power of the pound continue to decline at an alarming pace whereas gold has been steadily rising in value throughout 2022.
“Gold is a time-tested inflation hedge and has maintained its purchasing power for millennia. At times like these, when conventional money is steadily losing its buying power, gold offers people the best chance of keeping ahead of inflation.”
According to the latest official figures, Consumer Price Inflation hit seven percent in March, its highest level since 1992. By contrast the value of gold has risen 11 percent since the beginning of the year.
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The gold is denominated in ‘tally’, with each ‘tally’ representing one milligram of physical gold that the customer owns, which they can then save and spend anywhere — including shops and restaurants in the UK and overseas using the Tally App and Tally Debit Mastercard.
If the price of gold rises relative to sterling, so will the GBP value of the account — giving users more pounds and pence to spend wherever they like.
Tally is Britain’s first savings account with debit Mastercard anchored to real physical gold rather than pounds sterling.
Customers looking to keep inflation at bay can consider moving their pounds into a Tally Account, where it is instantly converted to gold at wholesale prices.
Instead of keeping money in bank, this can be something to consider for those who may want to invest but don’t know where to start.
Ella Fraser, 25, is a Digital Marketing Manager at Tally who was paid in Gold.
She said: “These days the price of everything seems to be going up, and young people are increasingly worried about the value of the pound in their pocket.
“I think it’s important for bosses to look at more innovative ways at helping their staff through these tough times, and having the option to agree your salary in tally is a great way of doing that.”
Mr Parry employs more than 20 staff and says that those who wish to continue receiving their wages in pounds will be allowed to do so.
Mr Parry has begun piloting his gold payroll scheme among senior staff and will soon offer it company wide.
PAYE taxes are applied as normal, with the exchange rate for gold to pounds taken into account.
As an example, a gross monthly salary that was previously £4,000 would be defined as 82,000 tally gross – 82,000 milligrams of gold – on their payslip.
The new payroll system was announced as the Office for National Statistics published data showing that the average worker’s regular pay fell by one percent in real terms in the 12 months to February 2022.
When discussing gold for the everyday person, Antonia Medlicott, financial editor at InvestingReviews.co.uk reminded Britons to never “put all your eggs in one basket”.
She explained that the acceleration of digital technologies means that gold is something now that can be used for day to day transactions.
She said: “Gold is traditionally seen as a store of wealth rather than something to use for your day-to-day transactions, but the acceleration of digital technologies is changing all that. Crypto sceptics looking for an alternative to the pound might find a debit card tied to gold more appealing because gold is an asset which has stood the test of time and isn’t just some passing fad.
“However, people shouldn’t lose sight of the fact that the value of gold, like any asset, can go up and down. This means that potentially it might not buy as many groceries in the future as it does today. It’s never a good idea to put all your eggs in one basket.
“So including gold as part of a wider diversified portfolio is probably the best strategy for someone looking for a hedge against inflation.”