Putting your money in a bank to sit doesn’t help you beat creeping inflation, what to do then? If only you could be paid in gold.
And that’s what some employees with BullionStar a local trading company has decided to opt for. Firstly your company has to be able to offer you that option, and so far BullionStar is the only company in the country doing so. It’s pretty straightforward, if you earn a certain amount, lets say $3,200 a month, you can opt to be paid in two gold bars worth $1,600 each, or take one gold bar and receive $1,600 in cash.
So far six employees have chosen the option of gold, Vincent Tie is one of them. He has opted to recieve part of his salary in gold to help beat inflation. It would seem like a smart choice, but where does one keep said gold bars? And what about the volatility in the commodity? Gold has been a primitive form of payment and was widely used in ancient history as a form of reward and or payment for a service. It made way for the more convenient paper currency we use now, but Vincent believes that more of his fellow colleagues might see the benefit of being paid in gold.
With volatility, it might swing either way for Vincent and his colleagues who choose the option of gold, if gold prices increase it means his basic salary also increases and it’s an added bonus, a dip in the market would spell similar negative effects to his salary. BullionStar will still be contributing to their employees CPF fund in cash, the commoners currency for the time being.
[plinker]