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 precious metals like gold and silver, as well as other goods such as salt or cattle. These items can be used for trade and have been historically accepted as a medium of exchange. Unlike modern paper money, which is considered fiat currency, commodity money is directly linked to the value of the material it is made from. This connection provides a tangible basis for its worth, making it a reliable form of money in various economies throughout history.