Universal Equivalent, commodity which expresses the value of all other commodities, and for which all of them are exchanged. As different commodities are exchanged for the universal equivalent, its value appears as the universal form of value (see Form of Value). The need for a universal equivalent arose when commodity production reached a sufficiently high level of development, and trade became regular. From the entire mass of commodities, the product of labour spontaneously emerged, which has always been in great demand on the market. As a result, the direct exchange of one commodity for another was replaced by commodity circulation, under which sales and purchases are effected through a mediator—i. e., through a universal equivalent. Exchange fell into two connected acts: the producer initially acquired the universal equivalent in exchange for his own commodity, and then bought the commodity he needed in exchange for that equivalent. Depending on the’conditions of production and exchange, different commodities have performed the functions of universal equivalent in different countries: grain, skins of wild animals, cattle, various metals, etc. As commodity production developed further and international trade expanded, precious metals—gold and silver, which became money—assumed the function of universal equivalent. Ultimately, gold took on the function of universal equivalent in all trade operations; paper money and other securities are also used as substitutes for gold in the process of circulation.