Commodity money is a type of currency that has intrinsic value, meaning it is made from a material that has worth on its own. Examples include gold, silver, and cattle. These items can be used for trade and are often accepted as payment because they are valuable commodities in their own right. Unlike fiat money, which is backed by government decree and has no intrinsic value, commodity money derives its value from the physical goods it represents. This form of money has been used throughout history, facilitating trade and commerce before the establishment of modern banking systems and paper currencies.