---
entity_slug: bullion_market_price_mechanism
evaluator: null
evaluated_at: '2026-02-23T04:38:57.335759'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes between market-determined bullion
    prices and official mint prices, identifying specific factors (currency degradation,
    transportation costs, delays) that cause divergence. It captures a distinct price
    discovery mechanism rather than being vague or circular.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is directly grounded in Smith's analysis in Book IV, Chapter
    6, where he extensively discusses how bullion market prices can differ from mint
    prices due to the factors mentioned. The entity accurately reflects Smith's actual
    arguments about precious metal valuation.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain is perfectly appropriate since this mechanism fundamentally
    concerns how precious metals are valued and exchanged in markets relative to their
    official monetary designations. It's centrally about exchange rate and valuation
    dynamics.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This maps well to S4 (intelligence/environmental adaptation) as it represents
    a market intelligence mechanism that reveals true values despite official prices,
    and potentially S2 (coordination) as it helps coordinate economic activity around
    accurate pricing. It's a clear feedback and information system.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity illuminates a crucial mechanism showing how markets discover
    true value independent of government-set prices, demonstrating Smith's broader
    themes about market efficiency and the limitations of official interventions.
    It explains structural relationships between official and market valuations.
---

# Evaluation: Bullion Market Price Mechanism

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes between market-determined bullion prices and official mint prices, identifying specific factors (currency degradation, transportation costs, delays) that cause divergence. It captures a distinct price discovery mechanism rather than being vague or circular.

## source_grounding — 5.0 / 5.0

This concept is directly grounded in Smith's analysis in Book IV, Chapter 6, where he extensively discusses how bullion market prices can differ from mint prices due to the factors mentioned. The entity accurately reflects Smith's actual arguments about precious metal valuation.

## domain_placement — 5.0 / 5.0

The "Exchange" domain is perfectly appropriate since this mechanism fundamentally concerns how precious metals are valued and exchanged in markets relative to their official monetary designations. It's centrally about exchange rate and valuation dynamics.

## vsm_relevance — 4.0 / 5.0

This maps well to S4 (intelligence/environmental adaptation) as it represents a market intelligence mechanism that reveals true values despite official prices, and potentially S2 (coordination) as it helps coordinate economic activity around accurate pricing. It's a clear feedback and information system.

## explanatory_value — 5.0 / 5.0

This entity illuminates a crucial mechanism showing how markets discover true value independent of government-set prices, demonstrating Smith's broader themes about market efficiency and the limitations of official interventions. It explains structural relationships between official and market valuations.
