Commodity money - Money that takes the form of a commodity with intrinsic value common resources goods that are rival but not excludable.
[edit] Commodity money system
A commodity money system is a monetary system such as the gold standard in which a commodity such as gold is made the unit of value and physically used as money, any other money, such as paper notes, ...
Commodity money such as gold or silver was amongst the earliest forms of money to emerge. Under a commodity money system, the objects used as money have intrinsic value, i.e., they have value beyond their use as money.
COMMODITY MONEY: A medium of exchange (money) with both value in use and value in exchange. Commodity money is first and foremost a commodity that provides users with satisfaction of their wants and needs.
commodity money a good used as money that has some intrinsic value in a nonmonetary use. (24)
communism an economic system in which all capital is collectively owned. (34) ...
bimetallism: A commodity money regime in which there is concurrent circulation of coins made from each of two metals and a fixed exchange rate between them. Historically the metals have almost always been gold and silver.
Fiat money [r]: money whose value is determined solely by government order, or "fiat" (as distinct from commodity money that has value because of its scarcity or cost of production). [e]
Fiscal [r]: relating to taxation and government expenditure.
Other forms of money are commodity money (gold and silver bullion and coins, brightly colored shells and so on), and barter , the trading of goods and services without monetary exchange.
Later, when paper money and checkable deposits were introduced, they were convertible into commodity money. The abandonment of convertibility of money into a commodity since August 15, 1971, when President Richard M. Nixon discontinued converting U.
Going back to the barter and gift economies that eventually gave birth to commodity money the concept of analysing the value of investments was a big part of the development of societies as we know them today.
An infantile form of foreign exchange trading history can be traced back to 1875 that precipitated the emergence of the gold standard monetary system. Prior to that, there was the gold exchanged standard which was the circulation of commodity money.
 See also: Barter, Population, Banks, Feedback, Saving
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