Difference between revisions of "Gold Standard (trade)"
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Let's begin with the value of gold in the fictional market we've introduced elsewhere: that of [[Locating References (trade)|Marzabol]]. On that linked page, we defined the number of gold references in Marzabol as 1.2 — after transport distribution. The total references in our localised "world" is 2.0, that Marzarbol has access to most of it. The total production of physical gold within this narrowed system is 2,640, or 1,320 oz. per reference. To handle this, we build the following table: | Let's begin with the value of gold in the fictional market we've introduced elsewhere: that of [[Locating References (trade)|Marzabol]]. On that linked page, we defined the number of gold references in Marzabol as 1.2 — after transport distribution. The total references in our localised "world" is 2.0, that Marzarbol has access to most of it. The total production of physical gold within this narrowed system is 2,640, or 1,320 oz. per reference. To handle this, we build the following table: | ||
| − | {| class="wikitable" style="float: | + | {| class="wikitable" style="float:left; margin-right: 25px; text-align:center; background-color:#d4f2f2; font-family: inherit;" |
|+Gold Ore | |+Gold Ore | ||
! style="width:70px"|local references !! style="width:70px"|total references !! style="width:70px"|production !! style="width:70px"|unit | ! style="width:70px"|local references !! style="width:70px"|total references !! style="width:70px"|production !! style="width:70px"|unit | ||
Revision as of 21:14, 27 March 2025
The gold standard explains a method for pricing raw materials in a game world based upon their raw material production and their comparative availability, determined by a single location's geographical relationship to those places where goods are produced. Before the system below can be employed, "references" must be placed in the game world, either arbitrarily or randomly. Additionally, details for the transport of goods must also be calculated. These details are necessary for the work that is explained and shown below.
In determining a price for raw resources — agricultural produce before coming to market, mineral ores, harvested oils, quarried stone and more — gold is a convenient standard because, first, it occurs naturally as nuggets or flakes, and is therefore tradeable without alteration. The first tokens of currency were fashioned of gold, with minimal hammering. As a material, it's rare, measurable and consistent — unlike, say, a system based on labour or grain production — especially since European-consistent cereals aren't produced at all in many parts of the game world. Gold is therefore practical where pricing is concerned.
With gold as the standard measure, we ensure that the value of gold itself differs only slightly from place to place. Otherwise, the effect on the price of gold wuold cause all other prices in the system to fluctuate wildly (and make the availability of gold the only meaningful factor in determining those prices). The method employed here, therefore, is to make gold 100 times less flexible than the price of any other material. "Flexibility" itself is a system-defined metric with its own logic, which we shall explain going forward.
Let's begin with the value of gold in the fictional market we've introduced elsewhere: that of Marzabol. On that linked page, we defined the number of gold references in Marzabol as 1.2 — after transport distribution. The total references in our localised "world" is 2.0, that Marzarbol has access to most of it. The total production of physical gold within this narrowed system is 2,640, or 1,320 oz. per reference. To handle this, we build the following table:
| local references | total references | production | unit |
|---|---|---|---|
| 1.2 | 2.0 | 2640 | oz. |
