In the field of economics, the commodity value of a good is its free market intrinsic value under optimal use conditions. In a free market, the commodity value of a good will be reflected by its price. For example, if an acre of land can yield a net of $100 dollars loss by laying fallow, $50 dollars gain by being planted with corn, and $100 dollars gain by being planted with wheat, then that acre's commodity value is $100 dollars; the farmer is assumed to put his land to best use. Face-to-face trading interactions on the New York Stock Exchange trading floor. ... This article does not cite any references or sources. ... A good in economics is anything that increases utility. ... A free market is an idealized market, where all economic decisions and actions by individuals regarding transfer of money, goods, and services are voluntary, and are therefore devoid of coercion and theft (some definitions of coercion are inclusive of theft). Colloquially and loosely, a free market economy is an economy... Intrinsic value can refer to: Intrinsic value (finance), of an option or stock. ... Growing the same crop repeatedly in the same place eventually depletes the soil of various nutrients. ...

Currency

Commodity value is of particular significance in the study of currency. For example, the commodity value of a coin is the value of the metal of which it is made. Gold and silver coins have a high commodity value, whereas fiat coins such as modern day quarters have a low commodity value. This is of particular historical relevance when analyzed in light of Gresham's Law. Fiat money or fiat currency, is money that is current or legal tender as satisfaction for money debts by government fiat, that is by law. ... For other uses, see Quarter Quarters is a popular drinking game which involves players bouncing a quarter off of a table in an attempt to have the quarter land, usually into a shotglass (or cup) on that table. ... Greshams law is commonly stated as: When there is a legal tender currency, bad money drives good money out of circulation. or more accurately Money overvalued by the State will drive money undervalued by the State out of circulation. ...

Debt

Asset backed debt has a commodity value equal to the price of the collateral; a loan backed by a house has a commodity value equal to the free market price of the house. Non-collateralized debt, on the other hand, does not have a commodity value; it is valuable only insofar as it is repaid. In business and accounting an asset is anything owned which can produce future economic benefit, whether in possession or by right to take possession, by a person or a group acting together, e. ... This article does not cite any references or sources. ... Collateral could mean: Collateral in finance means a security or guarantee (usually an asset) pledged for the repayment of a loan if one cannot procure enough funds to repay. ...

Investment

Commodity value is an important consideration in hedging against inflation. Whereas fiat currencies can devalue, often catastrophically, currencies with considerable commodity value are known to better maintain their value; a government can print as many fiat bills as it wants with relative ease, the same is not true of mining precious metals. This leads some investors to purchase goods and debts with high commodity value, which are inherently safer than those with low, or no commodity value, minimizing risk by sacrificing potential return. See gold as an investment. Certain figures in this article use scientific notation for readability. ... A precious metal is a rare metallic element of high, durable economic value. ... Reserves of foreign exchange and gold in 2006 A pile of 12. ...