Core Viewpoint - The value of the US Treasury's gold reserves has exceeded $1 trillion for the first time, driven by a 45% increase in gold prices this year, raising speculation about a potential revaluation of these assets by Treasury Secretary Bessent [1][2]. Group 1: Gold Reserves and Valuation - The current value of the US Treasury's gold is over 90 times the amount reported on the government's balance sheet, suggesting a significant discrepancy that could lead to a revaluation [2]. - Unlike many countries, the US government directly holds its gold reserves, while the Federal Reserve holds gold certificates that correspond to the value of these holdings [3]. - A revaluation of gold reserves could potentially inject approximately $990 billion into the Treasury, reducing the need for new Treasury bond issuance [4]. Group 2: Implications of Revaluation - A gold re-marking would have substantial implications for both the Treasury and the Federal Reserve's balance sheets, effectively functioning like a quantitative easing operation without actual market purchases [6][7]. - The re-marking would increase the assets and liabilities of both the Treasury and the Federal Reserve, with the Treasury's assets rising by the re-marked gold value and the Fed's assets increasing by the value of gold certificates [9]. - The market may view a gold re-marking as unconventional, as it has not occurred for decades, likely due to concerns over the independence of fiscal and monetary authorities [8].