Gold The time has come for big profits, page-744

Well, what does Infose School of Logic teaches? It teaches us that if you decide that gold should be mark-to-market then the value of a central bank's gold reserves should be marked down when the POG moves south and up when it moves north. This implies that in conformity with such an evaluation method central banks should have booked a loss for that part of their stock of gold being in their books since 2011.

However, according to goldbug logic, which Happycats seems to subscribe, gold has to be marked in conformity with its intrinsic value by using the so callled gold-to-decent-suit ratio, a ratio that suggest gold to be overvalued in certain countries and not in others as illustrated by the fact of a relative of mine working for an airline always buying his decent suits in Thailand.

"DEFINITION of 'Mark To Market - MTM'

1. A measure of the fair value of accounts that can change over time, such as assets and liabilities. Mark to market aims to provide a realistic appraisal of an institution's or company's current financial situation.

2. The accounting act of recording the price or value of a security, portfolio or account to reflect its current market value rather than its book value...."


By the way. I don't think that centrals banks do value gold either using its intrinsic value or by marking it to market.