markitect-main/examples/infospace-with-history/output/entities/warehouse-rent-for-bullion-deposits.md

Warehouse Rent for Bullion Deposits

Definition

The fee charged by banks for storing precious metal deposits, typically higher for gold than silver due to greater security risks and the difficulty of assaying gold's fineness. This fee represents the cost of maintaining the bank's bullion reserves that back its money-issuing operations.

Source Chapter

Book IV, Chapter 3

Context

Smith explains why warehouse rent is higher for gold deposits, citing the greater difficulty in ascertaining gold's fineness and the higher risk of fraud, while also noting that this fee contributes to the bank's revenue stream.

Economic Domain

Exchange

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