Palauan Beads and Money

When “False Coins” Appeared

Abstract

The value of beads in Palauan society is understood to have been generated through logic distinct from that of the market economy. However, recent developments have complicated this understanding. The rise of “fake” beads—imitations purchased with foreign currency—and the increasing exchange of genuine beads for U.S. dollars, both within and beyond gift-giving rituals, highlight this shift. Since the 1970s, U.S. dollars have been incorporated alongside beads and other indigenous goods in gift-giving ceremonies, contributing to the growing scale of these rituals. This paper examines these changes with a focus on beads and explores how gift-giving and exchange practices have transformed over time. By revisiting Graeber’s theory of value, it analyzes the evolving interplay between beads and the market economy, shedding light on the process by which their value is generated and redefined.