Paper losses are still losses.. If your holdings decrease in value by 25%, they need to increase by 33% to recover their previous price. Another way to think o

Paper losses are still losses.. If your holdings decrease in value by 25%, they need to increase by 33% to recover their previous price. Another way to think of it; You can borrow against assets using the gold as collateral. Texas's borrowing ability is much smaller today than it was when the gold was worth $1B. It's clear that they've lost some tangible value.