---
entity_slug: warehouse_rent_for_bullion_deposits
evaluator: null
evaluated_at: '2026-02-23T06:38:19.207159'
overall_score: 4.4
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition is precise and captures a distinct economic concept -
    the specific fee structure for storing precious metals with differential pricing
    based on metal type and associated risks. It clearly distinguishes this from general
    storage fees by emphasizing the connection to money-issuing operations and security
    considerations.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is well-grounded in Smith's actual discussion in Book IV,
    Chapter 3, where he explicitly explains the differential warehouse rent structure
    for gold versus silver deposits and the reasoning behind these pricing differences.
    The entity accurately reflects Smith's analysis of banking operations and bullion
    storage costs.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain placement is highly appropriate, as warehouse rent
    for bullion deposits is fundamentally about the mechanisms and costs of monetary
    exchange systems. This concept sits at the intersection of banking operations
    and currency systems that Smith analyzes in his exchange theory.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S1 (primary operations) as it represents a core
    operational function of banks in Smith's monetary system, and partially to S3
    (internal regulation) given the audit and security functions involved in assaying
    and storing precious metals. The risk management aspects also connect to S4 intelligence
    functions.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The entity provides genuine explanatory power by illuminating the structural
    relationship between physical security, quality assurance costs, and pricing in
    monetary systems. It reveals how operational costs in banking translate into fee
    structures that affect the broader exchange mechanism.
---

# Evaluation: Warehouse Rent For Bullion Deposits

## definition_precision — 4.0 / 5.0

The definition is precise and captures a distinct economic concept - the specific fee structure for storing precious metals with differential pricing based on metal type and associated risks. It clearly distinguishes this from general storage fees by emphasizing the connection to money-issuing operations and security considerations.

## source_grounding — 5.0 / 5.0

This entity is well-grounded in Smith's actual discussion in Book IV, Chapter 3, where he explicitly explains the differential warehouse rent structure for gold versus silver deposits and the reasoning behind these pricing differences. The entity accurately reflects Smith's analysis of banking operations and bullion storage costs.

## domain_placement — 5.0 / 5.0

The "Exchange" domain placement is highly appropriate, as warehouse rent for bullion deposits is fundamentally about the mechanisms and costs of monetary exchange systems. This concept sits at the intersection of banking operations and currency systems that Smith analyzes in his exchange theory.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S1 (primary operations) as it represents a core operational function of banks in Smith's monetary system, and partially to S3 (internal regulation) given the audit and security functions involved in assaying and storing precious metals. The risk management aspects also connect to S4 intelligence functions.

## explanatory_value — 4.0 / 5.0

The entity provides genuine explanatory power by illuminating the structural relationship between physical security, quality assurance costs, and pricing in monetary systems. It reveals how operational costs in banking translate into fee structures that affect the broader exchange mechanism.
