Castar (Arnor-Gondor)
Although barter is a primary source of goods exchange in north-western Endor, currency is used as well. Gold is rare in Middle-earth. As such, the main standard of value is the gold piece.
The main and original source of existing currency is the mints in Arnor (Fornost Erain) and Gondor (Minas Tirith). The currency system used was established by the Dunedain long before other currencies came into use. This currency system is based on the tharni and the castar. The castar is based on a pound of silver and is equal to 1/60 of a pound of silver.
Coinage
Fifty Piece
The Fifty Piece is the largest denomination of the Arnorian and Gondorian mints. As its name implies, it is equal to 50 Castar (which are the base currency). The Fifty Pieces was created as an easy means of carrying large amounts of wealth in a convenient manor. Although, because the gold resources available to both of the mints were scarce, the Fifty Piece did not permeate through society as well as planned. Mostly held in vaults or in a wealthy person’s private dwellings, the Fifty Pieces are rare in circulation but are gladly accepted when found. Cast of solid gold, the Fifty Pieces is as thick and slightly wide.
Castar
Originally the central currency of the realms of Gondor and Arnor, the Castar (Sindarin name: Mirian) in late Third Age fell into a secondary roll due to the number of minor transactions that began to require currency. The Ccastar is cast of pure silver. The castar in the Fourth Age regained its centrality.
Tharni
Tharni (Sindarin: Canath) means “quarter” and was originally created to equal 1/4 of a Castar. When in middle to late Third Age more and more tradesmen began desiring a smaller denomination of the standard currency, the Tharni began to replace the castar as the main coin of the kingdom of Gondor. The Tharni is still in use in the late IV Century of the Fourth Age. The tharni is minted of pure silver and is equal to one 240th of a pound of silver. Tipically a good pony is a full Tharni worth.
Silver Penny
The silver Penny is 1/12 oz of pure silver. It is the backbone of the secondary currency system in all the West. In the middle to late Third Age the northern Eriador saw a greatly reduced trade flow, and centres of power in that region, as well as in Rhovanion, began to mint a small silver coin for their needs. Originally, the silver penny was minted to be equal the Tharni of Gondor, but over the centuries its value decreased. With the establishment of the Reunited Kingdom, the silver penny was recognised at its value of the time and was decreed to be equal to a 1/12 of a Tharni.
Copper Farthing
Originating from the Shire, a copper Farthing (also known as shilling) is 1/6 oz of pure copper. The farthing began to be a minted coin when traders in the Shire would use the more common “copper penny” (which was 2/3 oz of pure copper) and cut it into farthings or quarters for smaller transactions. The Farthings spread to Bree and were used by Hobbits and Men alike to trade. Bree then began minting the copper farthing outright as its own denomination and since it has spread throughout Eriador, while are less common in Gondor and East to the Misty Mountains.