# bullion-price

## Definition

The market price of gold and silver in their raw, uncoined form, which fluctuates based on supply and demand conditions in the bullion market. Smith notes that the occasional fluctuations in the market price of gold and silver bullion arise from the same causes as fluctuations in other commodities, including loss from accidents, waste in manufacturing, and the need for continual importation to replace these losses.

## Source Chapter

Book 1, Chapter 5: "OF THE REAL AND NOMINAL PRICE OF COMMODITIES, OR OF THEIR PRICE IN LABOUR, AND THEIR PRICE IN MONEY."

## Context

Smith discusses bullion price while explaining the relationship between coin and bullion values and the factors that cause price fluctuations in precious metals. He argues that while market prices of bullion fluctuate due to normal market forces, sustained deviations from the mint price indicate problems with the coinage itself.

## Economic Domain

Exchange

## Smith's Original Wording

"The occasional fluctuations in the market price of gold and silver bullion arise from the same causes as the like fluctuations in that of all other commodities."

## Modern Interpretation

Bullion price represents the commodity value of precious metals independent of their monetary function, reflecting their value as industrial and investment commodities. In modern terms, this concept relates to commodity markets, precious metal trading, and the distinction between monetary and commodity values of precious metals. It underlies modern discussions of commodity pricing, investment in precious metals, and the relationship between commodity and financial markets.
