Commodity money

speciecommoditycommodity standardfree coinageintrinsic valuemoneypounds-of-tobacco
Commodity money is money whose value comes from a commodity of which it is made.wikipedia
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Money

monetaryspeciecash
Commodity money is money whose value comes from a commodity of which it is made.
Money is historically an emergent market phenomenon establishing a commodity money, but nearly all contemporary money systems are based on fiat money.

Intrinsic value (numismatics)

intrinsic valuemelt valueintrinsic
Commodity money consists of objects having value or use in themselves (intrinsic value) as well as their value in buying goods.
In commodity money, intrinsic value can be partially or entirely due to the desirable features of the object as a medium of exchange and a store of value.

Fiat money

fiat currencyfiatfiat currencies
This is in contrast to representative money, which has little or no intrinsic value but represents something of value, and fiat money, which has value only because it has been established as money by government regulation.
It was introduced as an alternative to commodity money and representative money.

Medium of exchange

mediums of exchangeexchange mediumfreely exchangeable for goods
Examples of commodities that have been used as mediums of exchange include gold, silver, copper, salt, peppercorns, tea, large stones (such as Rai stones), decorated belts, shells, alcohol, cigarettes, cannabis, silk, candy, nails, cocoa beans, cowries and barley. Although grains such as barley have been used historically in relations of trade and barter (Mesopotamia circa 3000 BC), they can be inconvenient as a medium of exchange or a standard of deferred payment due to transport and storage concerns and eventual spoilage.
Most forms of money can act as mediums of exchange including commodity money, representative money and most commonly fiat money.

Shell money

cowriesshell currencyCowry shells
Examples of commodities that have been used as mediums of exchange include gold, silver, copper, salt, peppercorns, tea, large stones (such as Rai stones), decorated belts, shells, alcohol, cigarettes, cannabis, silk, candy, nails, cocoa beans, cowries and barley.
Shell money is a medium of exchange similar to coin money and other forms of commodity money, and was once commonly used in many parts of the world.

Gresham's law

Gresham’s Laweconomic theorygood money
Radford documented the way that this 'cigarette currency' was subject to Gresham's law, inflation, and especially deflation.
For example, if there are two forms of commodity money in circulation, which are

Black pepper

pepperwhite pepperpeppercorn
Examples of commodities that have been used as mediums of exchange include gold, silver, copper, salt, peppercorns, tea, large stones (such as Rai stones), decorated belts, shells, alcohol, cigarettes, cannabis, silk, candy, nails, cocoa beans, cowries and barley.
Peppercorns were a much-prized trade good, often referred to as "black gold" and used as a form of commodity money.

Commodity market

commodity tradingcommoditiescommodity markets
The principles of commodity money inspire modern commodity markets: the effect of holding a token for a barrel of oil must be as close as possible economically to actually having the barrel at hand, despite its representation by a sophisticated range of financial instruments.
Early civilizations variously used pigs, rare seashells, or other items as commodity money.

Inflation

inflation rateprice inflationfood inflation
Radford documented the way that this 'cigarette currency' was subject to Gresham's law, inflation, and especially deflation.
Rapid increases in the money supply have taken place a number of times in countries experiencing political crises, producing hyperinflations – episodes of extreme inflation rates much higher than those observed in earlier periods of commodity money.

Representative money

representativecommodity backednegotiated
This is in contrast to representative money, which has little or no intrinsic value but represents something of value, and fiat money, which has value only because it has been established as money by government regulation.

Commodity

commoditiescommodity pricescommodity good
Commodity money is money whose value comes from a commodity of which it is made.

Demurrage (currency)

demurragedemurrage currency
Gold or other metals are sometimes used in a price system as a durable, easily warehoused store of value (demurrage).
For commodity money such as gold, demurrage is the cost of storing and securing the gold.

Prisoner-of-war camp

POW campprisoner of war campPOW camps
described the establishment of commodity money in P.O.W camps.
In many POW camps, cigarettes were widely used as currency known as 'commodity money'.

Standard of deferred payment

deferred payment periodrepaid
Although grains such as barley have been used historically in relations of trade and barter (Mesopotamia circa 3000 BC), they can be inconvenient as a medium of exchange or a standard of deferred payment due to transport and storage concerns and eventual spoilage.
Most forms of money can act as standards of deferred payment including commodity money, representative money and most commonly fiat money.

History of money

monetary historyabandonmentan international currency of the early ages
It may have intrinsic value (commodity money), be legally exchangeable for something with intrinsic value (representative money), or only have nominal value (fiat money).

Debasement

debaseddebasedebasing
A debasement of coinage is the practice of lowering the intrinsic value of coins, especially when used in connection with commodity money, such as gold or silver coins.

Metallism

Metal as moneymonometallismmetallist
The currency in a metallist monetary system may be made from the commodity itself (commodity money) or use tokens such as national banknotes redeemable in that commodity.

Gold standard

goldgold exchange standardbacked by gold
Between 1933 and 1970 (when the U.S. officially left the gold standard), one U.S. dollar was technically worth exactly 1/35 of a troy ounce (889 mg) of gold.
Commodity money is inconvenient to store and transport in large amounts.

Value (economics)

valueeconomic valuemonetary value
Commodity money is money whose value comes from a commodity of which it is made.

Gold

Aunative goldgold dust
Examples of commodities that have been used as mediums of exchange include gold, silver, copper, salt, peppercorns, tea, large stones (such as Rai stones), decorated belts, shells, alcohol, cigarettes, cannabis, silk, candy, nails, cocoa beans, cowries and barley.

Silver

Agsilver orenative silver
Examples of commodities that have been used as mediums of exchange include gold, silver, copper, salt, peppercorns, tea, large stones (such as Rai stones), decorated belts, shells, alcohol, cigarettes, cannabis, silk, candy, nails, cocoa beans, cowries and barley.

Copper

CuCu 2+ cupric
Examples of commodities that have been used as mediums of exchange include gold, silver, copper, salt, peppercorns, tea, large stones (such as Rai stones), decorated belts, shells, alcohol, cigarettes, cannabis, silk, candy, nails, cocoa beans, cowries and barley.

History of salt

saltin exchange for the Saharan salt of TaghazaEnglish "-''wich'' towns" and the history of salt
Examples of commodities that have been used as mediums of exchange include gold, silver, copper, salt, peppercorns, tea, large stones (such as Rai stones), decorated belts, shells, alcohol, cigarettes, cannabis, silk, candy, nails, cocoa beans, cowries and barley.

Compressed tea

tea brickbrick teabrick of tea
Examples of commodities that have been used as mediums of exchange include gold, silver, copper, salt, peppercorns, tea, large stones (such as Rai stones), decorated belts, shells, alcohol, cigarettes, cannabis, silk, candy, nails, cocoa beans, cowries and barley.