commodity money

Definition

The use of a specific commodity as a form of money. Commodities such as gold and silver have been used for years as a method of payment. Oil has also become a precious resource that is used in this form.

Use commodity money in a sentence

It was commodity money and I tried to explain to my friend that it had the same value as paper money did.

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The commodity money theory used by the financial analyst was successful as he recognized the storage of value and medium of exchange existing.

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Tom, the jeweler, owed his brother, Jesse some money. Something came up and Jesse needs the money right away. Tom did not have the cash and so, he gave Jesse commodity money in the form of gold.

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