Commodity money is defined as currency whose value is derived from the materials that it is composed of. Because of this, an important aspect of commodity money is that it carries a certain amount of intrinsic value. Thus, commodity currency won’t ever be less valuable than the actual value of the asset that comprises the commodity; if it were to be less valuable, people would just use the currency as the commodity.

Published by Rachel Leath


“Commodities such as gold and silver have a world market that transcends national borders, politics, religions, and race. A person may not like someone else’s religion, but he’ll accept his gold.”
-Robert Kiyosaki.

This site will go through the history, theories, and the issues of commodity money. The content is extensive, but keep in mind the main themes of trust and liquidity as you work your way through the world of commodity money.