Commodity money coins. Commodity money Commodity money is money whose value comes from a commodity of which it is made. Commodity money consists of objects that have value in themselves (intrinsic value) as well as value in their use as money. 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. These items were sometimes used in a metric of perceived value in conjunction to one another, in various commodity valuation or price system
Commodity currency Chen, Kenneth Rogoff and Barbara Rossi, exchange rates of commodity currencies can predict future global commodity prices. This is hugely beneficial for economists and policymakers who want a reliable measure of future commodity prices. A currency that is naturally tied to a country’s major commodities can be beneficial if the global demand for a commodity increases, naturally strengthening the value of the currency. As seen in Figure 1 as the demand for a commodity shifts out (higher demand) the price increases to p’. This increased demand also is likely to increase GDP as more exports take place as demonstrated by