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The spainish went to south america or known then as the new world to harvest and collect all of there gold.

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The spanish conquest of Peru in the 1530s provided Spain with immense quantities of silver that it used to secure the luxuries of the East.  Between 1570 and 1780 an estimated four thousand to five thousand tons of silver were exported to Manila.

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Tradeing of silver and the route to silver

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Tradeing of silver and the route to silver

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In 1585 worsening relations between Philip II of Spain and Elizabeth I of England erupted into war. The spanish afraid of wars in the furture and the one at hand used a large portion of the silver that they had to build ships and gear for their armie so they could conqour more land and become more powerful. unfortunatly they forgot about weather.

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The spanish used the melted silver to make spanish coins called The Real de a Ocho were the most common used currency in the world because there were so many of them. Since there were so many the prices went down.

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The spanish goverment at the time was a monarchy and that means there was only 1 ruler or 1 family in power and the heir to the throne of power was the child of the current ruler.

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Most of the spanish silver was produced in the New world.

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The spaish had lots of silver but they did not spend it wisely. They did not help there countire out and invest the silver back into the people . Instaed they spent lots of the silver causing the economy to go down as the value of silver was at a low. The spaish used the silver to grow there army and build boats to be better prepared for wars against other countries. They invested the monie inot boats ships and wars as well as giving it to the monarchy as spain was ruled by one person in power.

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In order to obtain the silver there were many steps to making it. The first step was toi get gthe silver ore. The ore was not always pure silver and it coukd be stuck in between some rocks. In order to seperate the silver from the rocks the spanish had the natives use mercury to dissolve the rock and they woukd then melt the silver and make it into spanish coins. This process was dangrous.

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The spansih aquired silver from mines that they had the native work in. They usally required the natives to work a given amount of time in their life in working in the mines. The mines were terribly dangrous and in some cases people would maime there kids so they would not have to work in the mines. Some reasons why the mines were dangrous were they were unstable and could not be held up and had collpases all the time. And the process to obtain silver was extremly dangrous as it involved mercury a toxic substance that causes multiple medical problems for the body.

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When the spanish found all of the silver that thye did they made a mistake. They forgot about one major rule of finance. Inflation. They brought so much silver into the world that there was a less demand for it as it became easyier to get. This caused prices to drop down and the value of silver to go down. Sooner or later that piece of bread that cost 1 silver coin costs 5. and you still get 1 loaf of bread.

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Potosí was the most famous and most productive source of silver in the Spanish empire in the sixteenth and seventeenth centuries. Settlement on the site, deep in the eastern range of the Andes in southern Bolivia, dates from the discovery of silver ores in the Cerro Rico of Potosí in 1545. Despite the great altitude the town grew quickly on moderately sloping terrain immediately north of the Cerro.