---
entity_slug: precious_metals_consumption
evaluator: null
evaluated_at: '2026-02-23T06:07:53.331728'
overall_score: 4.2
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes between different forms of precious
    metals consumption (coin, plate, jewelry, industrial) and identifies the key mechanism
    of ongoing replacement demand. It avoids circularity and captures a distinct economic
    phenomenon rather than a vague category.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is well-grounded in Smith's actual discussion in Book I,
    Chapter 11, where he explicitly analyzes how consumption of precious metals in
    various forms creates continuous demand that affects their value and market dynamics.
    The entity accurately reflects Smith's reasoning about replacement demand.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Consumption" domain assignment is precisely correct, as this entity
    specifically concerns the consumption patterns of precious metals rather than
    their production, exchange, or distribution. It fits naturally within consumption
    theory and demand analysis.
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, primarily mapping to S1 (primary
    operations of consuming precious metals) and potentially S4 (intelligence about
    market demand patterns). However, it's more of an economic process than a clear
    organizational system component.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The entity provides strong explanatory value by illuminating the mechanism
    through which consumption creates ongoing demand pressure, helping explain price
    dynamics and market behavior for precious metals. It reveals an important structural
    relationship between use patterns and market forces.
---

# Evaluation: Precious Metals Consumption

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes between different forms of precious metals consumption (coin, plate, jewelry, industrial) and identifies the key mechanism of ongoing replacement demand. It avoids circularity and captures a distinct economic phenomenon rather than a vague category.

## source_grounding — 5.0 / 5.0

This concept is well-grounded in Smith's actual discussion in Book I, Chapter 11, where he explicitly analyzes how consumption of precious metals in various forms creates continuous demand that affects their value and market dynamics. The entity accurately reflects Smith's reasoning about replacement demand.

## domain_placement — 5.0 / 5.0

The "Consumption" domain assignment is precisely correct, as this entity specifically concerns the consumption patterns of precious metals rather than their production, exchange, or distribution. It fits naturally within consumption theory and demand analysis.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, primarily mapping to S1 (primary operations of consuming precious metals) and potentially S4 (intelligence about market demand patterns). However, it's more of an economic process than a clear organizational system component.

## explanatory_value — 4.0 / 5.0

The entity provides strong explanatory value by illuminating the mechanism through which consumption creates ongoing demand pressure, helping explain price dynamics and market behavior for precious metals. It reveals an important structural relationship between use patterns and market forces.
