Economy of Middle-earth

Within Middle-earth

Gifting and exchange play a significant role in parts of Middle-earth. In the Shire, Hobbits have objects called mathoms, an Old English term for treasure or gift, which are passed from hand to hand as valued or sometimes unvalued gifts; many are stored in the Mathom-house at Michel Delving. This practice is based on the Germanic gifting tradition seen in works like Beowulf, where a lord broadens his reach by giving gifts and the visible exchange of gifts defines the relative status of the people involved.

Sauron's gift of magical rings to the nine Ringwraiths in exchange for their lives, and the nature of the One Ring as an item of exchange, illustrate this tradition. Money and items of value appear in Tolkien's writings. Hobbits use money: Bilbo Baggins forgets to take any when leaving the Shire in a hurry, and Barliman Butterbur pays 30 silver pennies for horses and ponies stolen from The Prancing Pony inn, with one pony costing about four silver pennies.

Bilbo gives away a few pennies before his birthday party, and Gandalf uses the phrase worth a gold piece of significant news at the Council of Elrond. The people of Gondor use silver coins, the main coinage being the Castar, with a quarter of a Castar called a Tharni. The Dwarves of Moria value gold and jewels, but especially the rare metal mithril, which they mine. Gimli is seen as an exemplar of neoliberal institutionalists, as his people avidly pursue gold and treasure, and the relationships among Dwarves, Elves, and Men illustrate interdependence through trade and allies, reducing perceptions of insecurity and creating opportunities for cooperation against Sauron.