A History Of Gold In The Early-Modern Era

Posted on by Brian Colwell

The early modern era witnessed an unprecedented global transformation in the production, trade, and use of gold.

From the Spanish conquistadors’ plunder of the Americas to the Brazilian gold rush that created the world’s longest-lasting mining boom, from the establishment of standardized European gold coinage to the trans-Pacific Manila galleon trade, gold became the lifeblood of an emerging global economy. This precious metal not only financed empires and fueled exploration but also drove technological innovation, reshaped societies, and established trade networks that connected continents in ways previously unimaginable.

The period from 1500 to 1800 saw gold transform from a regional commodity into the foundation of the world’s first truly global monetary system, leaving an indelible mark on human civilization that continues to influence economic and social structures today.

A History Of Gold In The Early-Modern Era (1500 – 1800)

The three centuries spanning 1500 to 1800 marked a revolutionary period in the history of gold, characterized by massive discoveries in the Americas, the standardization of European gold coinage, and the establishment of global trade networks that made gold the universal medium of exchange. Spanish conquistadors extracted over 100 tons of gold from the Americas in just the first half-century of conquest, while the Brazilian gold rush of the 1690s produced an estimated 1,200 tons using artisanal methods. European powers minted standardized gold coins like the Florentine florin and Venetian ducat that became accepted worldwide, while new trade routes such as the Manila galleon connected Asian markets with American gold and silver. This era saw gold transform from a precious commodity into the foundation of the first global monetary system, fundamentally reshaping world commerce and establishing patterns of trade that would endure well into the modern era.

Chronology

  • 1494 – Spanish conquistadors first discovered gold on the island of Hispaniola (modern Dominican Republic/Haiti), marking the beginning of European gold extraction in the Americas [1]
  • 1508 – Spanish gold prospecting expanded to Puerto Rico as conquistadors searched for new sources of the precious metal [1]
  • 1509 – Spanish expeditions reached Jamaica in their quest for gold, expanding the search throughout the Caribbean [1]
  • 1511 – Cuba was conquered by the Spanish and proved to be the best source of gold in the Caribbean islands discovered thus far [1]
  • 1511 – Holy Roman Emperor Maximilian introduced the coinage of gold ducats, standardizing Central European gold currency [2]
  • 1513 – Juan Ponce de León made the first documented Spanish landing in Florida while searching for gold [1]
  • 1513 – Vasco Núñez de Balboa crossed the Isthmus of Panama and became the first European to sight the Pacific Ocean, opening new routes for gold transport [1]
  • 1521 – Hernán Cortés conquered the Aztec Empire in Mexico, seizing a cache of gold, silver, and precious stones valued at two billion pesos [3]
  • 1524 – Pedro de Alvarado led the conquest of the Maya in Guatemala, seeking gold and establishing Spanish control [1]
  • 1528 – Francisco Pizarro first made contact with the Inca Empire at Tumbes, beginning Spanish exploration of Peru’s gold resources [4]
  • 1529 – The Treaty of Zaragoza between Portugal and Spain divided the world, giving Spain the Philippines and establishing future gold trade routes [5]
  • 1532 – Francisco Pizarro captured Inca emperor Atahualpa at the Battle of Cajamarca, demanding a massive gold ransom [6]
  • 1533 – Atahualpa’s gold ransom of over 6,000 kg (13,420 lbs) was paid to the Spanish, valued at over 1.3 million gold pesos [1]
  • 1533 – Pizarro entered the Inca capital of Cuzco on November 15, completing the Spanish conquest of Peru [7]
  • 1545 – Diego Gualpa discovered the massive silver deposits at Potosí (Cerro Rico) in present-day Bolivia, which also contained gold [8]
  • 1560 – Spanish prospectors discovered mercury deposits at Huancavelica, Peru, essential for processing silver and gold ores [9]
  • 1563 – The Huancavelica mercury mines opened, dramatically increasing gold and silver extraction efficiency in South America [6]
  • 1565 – The Manila galleon trade route was established by Andrés de Urdaneta, connecting Asian markets with American gold and silver [10]
  • 1565 – The first successful Manila galleon voyage from the Philippines to Acapulco was completed, opening trans-Pacific gold trade [11]
  • 1572 – Spanish Viceroy Francisco de Toledo established the Casa de la Moneda (Royal Mint) at Potosí to process gold and silver [12]
  • 1576 – The Manila galleon Espiritu Santo was lost, one of many ships carrying gold that would be wrecked over the centuries [10]
  • 1580-1640 – The union of Spanish and Portuguese crowns strengthened gold trade between Africa, America, and Asia [13]
  • 1596 – The Manila galleon San Felipe was wrecked in Japan while carrying gold and silver from the Americas [10]
  • 1600 – Potosí reached a population of 160,000, making it one of the world’s largest cities due to gold and silver mining [9]
  • 1603 – An anonymous report described Potosí’s population as including 120,000 native Andeans working in the mines [8]
  • 1609 – The pan amalgamation process for extracting gold and silver was invented in Potosí, improving mining efficiency [8]
  • 1625 – The Dutch West India Company initiated attacks on Portuguese gold trading posts in West Africa [14]
  • 1637 – The Dutch captured Elmina Castle from the Portuguese, taking control of West African gold trade [14]
  • 1642 – Portuguese were completely expelled from the Gold Coast (Ghana) by the Dutch, ending Portuguese dominance [14]
  • 1650 – European gold coinage had become widespread, with florins and ducats serving as international currency [2]
  • 1690s – The Brazilian Gold Rush began when bandeirantes discovered large gold deposits in Minas Gerais [15]
  • 1693 – Major gold discoveries in Brazil triggered the first modern gold rush, attracting 400,000 Portuguese and 500,000 slaves [16]
  • 1667 – Samuel Pepys recorded in his diary that the gold guinea was trading at 24 to 25 shillings, showing gold’s rising value [22]
  • 1668 – Two Guinea gold pieces were first issued in England, expanding the gold coinage denominations [23]
  • 1669 – Half Guinea gold coins were first minted in England, further diversifying gold currency options [23]
  • 1674 – The first “River Gold” ducat was minted in the Palatinate, featuring gold extracted from the Rhine River [24]
  • 1685-1688 – Gold guineas were minted every year during the reign of James II with an average gold purity of 0.9094 [22]
  • 1695 – Gold discoveries in Minas Gerais, Brazil reached their peak, transforming the region [17]
  • 1701 – Portuguese Crown established the Royal Fifths tax (quintos) on Brazilian gold production [18]
  • 1708 – Civil war broke out in Brazilian gold fields between paulistas and emboabas over mining rights [19]
  • 1663 – King Charles II introduced the gold guinea coin in England, the first machine-struck gold coin containing approximately 8.4 grams of gold [22]
  • 1711 – Ouro Preto (Vila Rica) was established as a major gold mining center in Brazil [20]
  • 1718 – Gold was discovered on the Cuiabá River in Brazil, extending Portuguese settlement northwest [15]
  • 1720 – Minas Gerais became an official captaincy of Brazil due to gold wealth [21]
  • 1720 – Half of Brazil’s entire population was residing in Minas Gerais due to the gold rush [16]
  • 1725 – Brazilian gold production was transforming global trade and financing European economies [16]
  • 1727 – Bom Jesus de Cuiabá was founded as a gold mining town in western Brazil [15]
  • 1728 – Chests of supposed Cuiabá gold opened in Lisbon were found to contain lead, revealing widespread fraud [15]
  • 1729 – Diamonds were discovered in Brazil north of the gold mining zones, adding to mineral wealth [21]
  • 1717 – The value of the gold guinea was officially fixed at 21 shillings in England, stabilizing gold currency [22]
  • 1729-1739 – British gold coins minted during this period sometimes bore the letters “EIC” indicating gold from the East India Company [25]
  • 1745 – British gold coins bore the inscription “LIMA” indicating the gold came from South American sources [25]
  • 1743 – The Manila galleon Nuestra Senora de la Covadonga was captured by George Anson with its gold cargo [10]
  • 1746-1761 – The Manila galleon Rosario, with 1,710 tons displacement, regularly carried gold across the Pacific [11]
  • 1750 – Brazil was producing 10-15 tons of gold annually, supplying much of Europe’s gold [17]
  • 1762 – The Manila galleon Nuestra Senora de la Santisima Trinidad was captured by British forces [10]
  • 1777-1778 – Spain created the Viceroyalty of Río de la Plata, affecting gold trade routes in South America [6]
  • 1780 – Indigenous revolt led by Túpac Amaru II disrupted gold mining operations in Peru [6]
  • 1785 – The Philippines were opened to other European traders, reducing the Manila galleon’s gold trade monopoly [5]
  • 1797 – Napoleon ended the Venetian Republic, ceasing production of the gold ducat after 513 years [2]
  • 1798 – The Manila galleon San Cristobal was lost, one of the last major gold shipments via this route [10]
  • 1800 – Brazilian gold production began to decline as easily accessible deposits were exhausted [15]
  • 1787-1799 – George III’s “spade guinea” gold coins were minted, becoming one of the most famous British gold coins [26]
  • 1799 – British gold guinea production was halted due to gold scarcity from the French Revolutionary Wars [22]
  • 1813 – 80,000 gold guineas were specially minted for the Duke of Wellington’s army in the Pyrenees [22]
  • 1814 – The last gold guinea was minted, ending 151 years of continuous production [23]
  • 1816 – The Great Recoinage replaced the gold guinea with the gold sovereign as Britain adopted a formal gold standard [22]

Final Thoughts

The early modern era’s gold history reveals far more than a tale of precious metal extraction and trade—it exposes the foundations of our modern global economy and the profound human costs of its creation. The staggering wealth generated from American gold mines came at an unconscionable price, with an estimated eight million indigenous peoples and enslaved Africans perishing in the mines of Potosí alone.

Yet this period also demonstrated gold’s unique ability to connect distant civilizations, standardize international commerce, and drive technological innovation.

The legacy of this era extends beyond economics: it established patterns of resource exploitation, created lasting cultural exchanges between continents, and set precedents for international trade that continue to shape our world. As we reflect on these three centuries of transformation, we must acknowledge both the remarkable achievements in global commerce and exploration, and the devastating human and environmental costs that accompanied the world’s first great gold rushes.

Thanks for reading!

References

[1] The Gold of the Conquistadors – World History Encyclopedia – https://www.worldhistory.org/article/2045/the-gold-of-the-conquistadors/

[2] Ducat – Wikipedia – https://en.wikipedia.org/wiki/Ducat

[3] How Spain’s lust for gold doomed the Inca Empire – https://www.nationalgeographic.com/history/history-magazine/article/inca-empire-gold-spain-pizarro-atahualpa-treasure

[4] Spanish conquest of the Inca Empire – Wikipedia – https://en.wikipedia.org/wiki/Spanish_conquest_of_the_Inca_Empire

[5] Manila Galleon – World History Encyclopedia – https://www.worldhistory.org/Manila_Galleon/

[6] Peru – Spanish Conquest, Inca Empire, Andes | Britannica – https://www.britannica.com/place/Peru/Discovery-and-exploration-by-Europeans

[7] Francisco Pizarro – Wikipedia – https://en.wikipedia.org/wiki/Francisco_Pizarro

[8] Potosí – Wikipedia – https://en.wikipedia.org/wiki/Potos%C3%AD

[9] Potosi Silver Mine History – Rock & Gem Magazine – https://www.rockngem.com/potosi-silver-mine-history/

[10] Manila galleon – Wikipedia – https://en.wikipedia.org/wiki/Manila_galleon

[11] The Manila Galleons | Proceedings – December 1934 Vol. 60/12/382 – https://www.usni.org/magazines/proceedings/1934/december/manila-galleons

[12] Unveiling Potosí: A Legacy of Silver & Splendor | LAC Geo – https://lacgeo.com/city-potosi-cerro-rico-bolivia

[13] Early Trade Posts And Forts Of West Africa – https://www.researchgate.net/publication/315292904_Early_Trade_Posts_And_Forts_Of_West_Africa

[14] Portuguese Gold Coast – Wikipedia – https://en.wikipedia.org/wiki/Portuguese_Gold_Coast

[15] Brazilian Gold Rush – Wikipedia – https://en.wikipedia.org/wiki/Brazilian_Gold_Rush

[16] Gold mining in Brazil – Wikipedia – https://en.wikipedia.org/wiki/Gold_mining_in_Brazil

[17] Brazil and the Famous Brazilian Gold Rush | Aventura do Brasil – https://www.aventuradobrasil.com/blog/the-gold-rush-in-brazil/

[18] 2.1 Gold Discovered | Brazil: Five Centuries of Change – https://library.brown.edu/create/fivecenturiesofchange/chapters/chapter-1/gold-discovered/

[19] Brazilian Gold Rush | EBSCO Research Starters – https://www.ebsco.com/research-starters/history/brazilian-gold-rush

[20] Ouro Preto – History and Facts | History Hit – https://www.historyhit.com/locations/ouro-preto/

[21] Minas Gerais | Encyclopedia.com – https://www.encyclopedia.com/humanities/encyclopedias-almanacs-transcripts-and-maps/minas-gerais

[22] Guinea (coin) – Wikipedia – https://en.wikipedia.org/wiki/Guinea_(coin)

[23] Two centuries since the end of the British Guinea coin commemorated in new range – AgAuNEWS – https://agaunews.com/two-centuries-since-end-british-guinea-coin-commemorated-new-range/

[24] The “Gold”-en Century – Numismatic News – https://www.numismaticnews.net/world-coins/the-gold-en-century

[25] Europe in Transformation: The 17th Century – American Numismatic Society – https://numismatics.org/europe-in-transformation-the-17th-century/

[26] The Story of the British Gold Guinea – https://www.chards.co.uk/guides/guinea-story/565