Fungibility Fungibility In economics, fungibility is the property of a good or a commodity whose individual units are essentially interchangeable. For example, since one kilogram of pure gold is equivalent to any other kilogram of pure gold, whether in the form of coins, ingots, or in other states, gold is fungible. Other fungible commodities include sweet crude oil, company shares, bonds, other precious metals, and currencies. Fungibility refers only to the equivalence of each unit of a commodity with other units of the same commodity and not to the exchange of one commodity for another, which is barter. The word "fungibility"
Commodity markets. The wide availability of commodities typically leads to smaller profit margins and diminishes the importance of factors (such as brand name) other than price. The word "commodity" came into use in English in the 15th century, from the French "commodité", "amenity, convenience". Going further back, the French word derives from the Latin "commoditas", meaning "suitability, convenience, advantage". The Latin word "commodus" (from which English gets other words including "commodious" and "accommodate") meant variously "appropriate", "proper measure, time, or condition", and "advantage, benefit". In economics, the term "commodity" is used specifically for economic goods or services that have full or