Commodity Money

Commodity money is any money whose value comes from the commodity out of which it is made. The commodity itself constitutes the money and the money is the commodity. Examples of commodities that have been used as exchange of mediums of include Gold, ready made cloths, Silver, copper, agricultural items ,salt, pepper, corns, large stones, decorated belts, shells, alcohol, cigarettes, cannabis, and candy. Since payment by commodity generally provides a useful good, commodity money is similar to barter but is distinct because commodity money uses a single recognized unit of exchange.