Chapter 3 of 12 · What is money?
Commodities: goods that became money
Educational text. This content explains concepts and history; it is not an individual investment recommendation or a promise of returns. Figures, rates and regulatory status have a reference date of and change over time. The bracketed references — [1], [2]… — are listed in the Sources section.
In many societies, goods in high demand came to serve as intermediaries in exchange: this is commodity money, or commodities.
The main feature of commodities is that they have a use value of their own. You can eat them, use them or consume them — as well as trade them.
Commodities used as money
- Cattle: a measure of wealth in several ancient cultures, though subject to disease and death
- Salt: essential for preserving food and valuable where it was scarce
- Gold and silver: in ingots or bars, prized in many cultures and still held today in central bank reserves
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Traces in the Portuguese language
| Word | Origin | What is known |
|---|---|---|
| Pecúnia (money) | Latin pecunia, from pecus | Pecus means "cattle"; wealth was once measured in head of livestock [6] |
| Pecúlio (savings) | Latin peculium, from pecus | It referred to the small herd someone built up little by little [6] |
| Capital (assets) | Latin capitalis, from caput ("head") | The sense is "principal": Italian bankers called the principal sum, without interest, capitale [6]. The link to "head of cattle" is popular, but it is not the documented path |
| Salário (salary) | Latin salarium, related to sal (salt) | The word really does come from sal, but there is no evidence that Roman soldiers were paid in salt; they were paid mainly in coins, and salarium referred to a sum of money [7] |
Why commodities gave way to other forms
- Fluctuating value: a drought wiped out the herd; a new mine flooded the metal market
- Poor divisibility: how do you pay for a loaf of bread with a cow?
- Difficult transport: moving cattle or salt over long distances was expensive and risky
- Perishability: food spoils; metals don't, but they are heavy
The answer that spread was standardized metal — the minted coin.
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Sources
All online sources accessed on September 15, 2026.
- Dicionário Etimológico. Verbetes "dinheiro", "pecuniário" e "capital". https://www.dicionarioetimologico.com.br/dinheiro/ · https://www.dicionarioetimologico.com.br/pecuniario/ · https://www.dicionarioetimologico.com.br/capital/
- EDWELL, Peter (Macquarie University). Our pay is called a 'salary', but were Roman soldiers really paid in salt? The Conversation. https://theconversation.com/our-pay-is-called-a-salary-but-were-roman-soldiers-really-paid-in-salt-290057