---
entity_slug: fluctuations_in_value_of_gold_and_silver
evaluator: null
evaluated_at: '2026-02-23T05:28:40.901137'
overall_score: 4.4
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly captures a specific economic phenomenon - variations
    in purchasing power of precious metals due to identifiable causes (mine productivity,
    new discoveries, market shifts). It avoids circularity and distinguishes this
    concept from general price movements or inflation.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's text, particularly his discussion
    in Book I, Chapter 5 about the unreliability of gold and silver as measures of
    value, with explicit reference to the impact of American mine discoveries on European
    prices.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain is perfectly appropriate since this concept deals
    fundamentally with how precious metals function (or fail to function) as stable
    mediums of exchange and measures of value in market transactions.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S4 (intelligence/environmental adaptation) as
    it represents how economic systems must adapt to external shocks like new mine
    discoveries, and to S2 (coordination) as these fluctuations create coordination
    problems requiring market adjustments.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The entity provides genuine explanatory power by illuminating why precious
    metals fail as stable value measures and revealing the structural vulnerability
    of monetary systems to supply shocks, rather than merely describing surface price
    movements.
---

# Evaluation: Fluctuations In Value Of Gold And Silver

## definition_precision — 4.0 / 5.0

The definition clearly captures a specific economic phenomenon - variations in purchasing power of precious metals due to identifiable causes (mine productivity, new discoveries, market shifts). It avoids circularity and distinguishes this concept from general price movements or inflation.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's text, particularly his discussion in Book I, Chapter 5 about the unreliability of gold and silver as measures of value, with explicit reference to the impact of American mine discoveries on European prices.

## domain_placement — 5.0 / 5.0

The "Exchange" domain is perfectly appropriate since this concept deals fundamentally with how precious metals function (or fail to function) as stable mediums of exchange and measures of value in market transactions.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S4 (intelligence/environmental adaptation) as it represents how economic systems must adapt to external shocks like new mine discoveries, and to S2 (coordination) as these fluctuations create coordination problems requiring market adjustments.

## explanatory_value — 4.0 / 5.0

The entity provides genuine explanatory power by illuminating why precious metals fail as stable value measures and revealing the structural vulnerability of monetary systems to supply shocks, rather than merely describing surface price movements.
