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# Treasure Accumulation

## Definition

The practice of governments and individuals hoarding precious metals as a store of wealth, traditionally viewed as a sign of national strength and security. Smith argues this practice is misguided and that such metals should circulate to facilitate productive economic activity.

## Source Chapter

Book IV, Chapter 1

## Context

Smith criticizes the mercantile obsession with accumulating treasure, showing that beyond what is needed for circulation and reasonable reserves, excess precious metals represent dead capital that could be more productively employed. He argues that true national wealth lies in productive capacity, not in hoarded bullion.

## Economic Domain

Accumulation
