Money as distinguished from coin, the result of the circulation process C―M―C, forms the starting point of the circulation process M―C―M, i. e. the exchange of money for commodity in order to exchange commodity for money. In the form C―M―C, commodity forms the starting and final points of the movement; in the form M―C―M, money plays that part. In the former case money is the medium of exchange of commodities, in the latter the commodity helps money to become money. Money which appears merely as a means of circulation in the first form becomes an end in the second form; while commodity which appeared first as the end, now becomes but a means. Since money is itself the result of circulation C―M―C, the result of circulation appears at the same time as its starting point in the form M―C―M. While in the case of C―M―C the interchange of matter constituted the real import of the process, the form of the commodity resulting from this first process constitutes the import of the second process M―C―M. In the form C―M―C the two extreme members are commodities of the same value, but qualitatively different use-values. Their mutual exchange C―C constitutes actual interchange of matter. In the form M―C―M the two extremes are gold and at the same time gold of equal value. To exchange gold for a commodity in order to exchange the commodity for gold, or if we consider the final result M―M, to exchange gold for gold, seems absurd. But if we translate the formula M―C―M into the expression: _to buy_ in order _to sell_, which means nothing but to exchange gold for gold through an intervening movement, we recognize at once the prevailing form of capitalist production. In actual practice, however, people do not buy in order to sell, but they buy cheap in order to sell dear. Money is exchanged for a commodity in order to exchange the same commodity for a larger amount of money, so that the extremes M, M are, if not qualitatively, then quantitatively different. Such a quantitative difference presupposes the _exchange of non-equivalents_, yet commodity and money as such are only opposite forms of the same commodity, i. e. they are different forms of the same magnitude of value. The circuit M―C―M thus conceals under the forms of money and commodity more highly developed relations of production, and is but a reflection within the sphere of simple circulation of a movement of a more advanced character. Money, as distinguished from the medium of circulation, must therefore be developed from the direct form of circulation of commodities, C―M―C.