OK, so the shit has hit the fan and zombies out number us 20 to 1, we meet survivors occasionally and need to trade goods with each other, What would the method of currency be? Prisons have Cigarettes, schools have Pokémon cards, what would survivors trade; ammo, food?

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Currency will develop on it's own. Bartering goods and skills would be the main way of making transactions. Gold and Silver might hold some value. An item is only worth what someone is willing to pay for it.
Tins of food would be pretty good. Half a dozen 9mm's for a can of dried peaches.
bacon bacon bacon
me too!
I've yet to find a salted meat product that I do not like.
If everything goes to plan for me, my "currency" would be tobacco, alcohol, gold & silver. I don't sell guns or ammo, as they can be used against me. I might trade MREs, they're handy all-in-one meals, could be pretty valuable in the first few months when people start to starve and hasn't started their own gardens yet. Canned food is another, I plan on getting a couple pallet's worth almost immediately after the chaos begins, if I can get the forklift to work.
I might also sell drugs. nothing real serious, mostly pot and medicines that I'm sure people will be in real need of. There isn't nearly enough ibuprofen in the world to last forever, eventually pot would be needed to cover as a pain killer. I know some people who knows some people that actually grows that stuff in their house. Could be real handy to be in contact with them or they join my group shortly after zombies attack.
In The Book Of Eli simple things lie Shampoo, KFC Had Wipes and Clothing are used as currency.
Anything that people want or need can be currency, we would return to a state of bartering since paper money and coins would hold no value as they have no real use. You could trade food, water, ammo, weapons, skills, and anything else that you can think of.

I think a lot of people have the right idea on here. Food, ammo, and pretty much whatever someone has can and will be traded. Women will sell themselves, men will sell whatever goods that dont have longterm value. Food is a something I don't think will be shopped around very much. Food will be harder to come by for everyone, those who have it will think long and hard about trading it off.

 

One thing that I think will make great trade material is moonshine. Easily made, and has more uses that I can count. Fuel, cleaner, antiseptic, anesthetic, and recreational use. The fact that it can be burned in a vehicle will make it very desirable.

 

Precious metals will always hold some amount of value, but I guarantee that it won't be nearly what is currently. For people that have someone secured pieces of land from walkers seed will be a tradable resource.

 

I wouldnt be surprised if water to some extent doesn't gain trade value. Especially for those foulish enough to try to stick it out in major cities.

 

If your smart, get out of the cities and fortify some space of land as best you possibly can. Stock, up and plan for the worst possible.

I'd say gold/silver, tobacco, and alcohol will be big bartering currencies. I think fresh water will also be a big deal, as will food and other supplies. I wouldn't be one to trade weapons of any sort, just doesn't seem like a smart idea.
I think old world luxuries will be a form a currency. If not food,ammo and anything you can make a weapon out of.

gasoline, ammo, bottled water, medicine, weapons, liquor and portable food.

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