---
entity_slug: value_of_gold
evaluator: null
evaluated_at: '2026-02-23T06:36:44.854455'
overall_score: 4.2
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes the value of gold as its purchasing
    power in terms of labor or commodities, avoiding circularity by grounding it in
    what gold can command rather than defining it in terms of itself. It appropriately
    contextualizes this within Smith's comparative analysis with silver and market
    dynamics.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's actual analysis in Book I,
    Chapter 5, where he extensively discusses the relative values of gold and silver,
    their historical fluctuations, and how changes in mine productivity affect their
    purchasing power. The definition accurately reflects Smith's treatment of precious
    metals as commodities whose values fluctuate based on supply and demand conditions.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain is perfectly appropriate since Smith's discussion
    of gold's value is fundamentally about its role as a medium of exchange and store
    of value in monetary systems. This placement correctly captures the entity's function
    within the broader framework of market exchange mechanisms.
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, primarily mapping to S4 (intelligence/environmental
    adaptation) as it represents information about relative values that economic actors
    use to make decisions. However, it's somewhat abstract as a pure value concept
    rather than an operational mechanism.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The entity provides substantial explanatory value by illuminating how
    monetary systems adapt to changes in the relative scarcity of precious metals,
    demonstrating Smith's insight that even money itself is subject to market forces.
    It reveals the structural relationship between commodity production and monetary
    stability.
---

# Evaluation: Value Of Gold

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes the value of gold as its purchasing power in terms of labor or commodities, avoiding circularity by grounding it in what gold can command rather than defining it in terms of itself. It appropriately contextualizes this within Smith's comparative analysis with silver and market dynamics.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's actual analysis in Book I, Chapter 5, where he extensively discusses the relative values of gold and silver, their historical fluctuations, and how changes in mine productivity affect their purchasing power. The definition accurately reflects Smith's treatment of precious metals as commodities whose values fluctuate based on supply and demand conditions.

## domain_placement — 5.0 / 5.0

The "Exchange" domain is perfectly appropriate since Smith's discussion of gold's value is fundamentally about its role as a medium of exchange and store of value in monetary systems. This placement correctly captures the entity's function within the broader framework of market exchange mechanisms.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, primarily mapping to S4 (intelligence/environmental adaptation) as it represents information about relative values that economic actors use to make decisions. However, it's somewhat abstract as a pure value concept rather than an operational mechanism.

## explanatory_value — 4.0 / 5.0

The entity provides substantial explanatory value by illuminating how monetary systems adapt to changes in the relative scarcity of precious metals, demonstrating Smith's insight that even money itself is subject to market forces. It reveals the structural relationship between commodity production and monetary stability.
