Spain’s gold was primarily used to finance its wars, build its empire, and trade with other countries. Some of it was also stolen by other nations in conflicts.
More detailed answer question
Spain’s gold, also known as the New World Treasure or simply El Dorado, was the envy of the world during the 16th century. However, much of it has been lost or dispersed over time.
While some of Spain’s gold was used to finance wars and build its vast empire, it was also used to fund exploration and trade with other countries. One notable example is the Manila Galleon trade, which brought Asian goods to Mexico and New Spain in exchange for American silver and gold.
Unfortunately for Spain, its gold also attracted the attention of other nations. English privateers like Sir Francis Drake and Sir Walter Raleigh plundered Spanish ships and colonies, resulting in significant losses of gold and silver. The Dutch and French also targeted Spanish treasure ships, further depleting Spain’s wealth.
One interesting fact is that the legendary city of El Dorado was never actually found. The myth originated from South American native traditions of offering gold to their gods, and Spanish explorers misinterpreted it as an actual city made of gold.
Another interesting fact is that some of Spain’s gold ended up in the hands of famous pirates like Captain Kidd and Blackbeard. They preyed on Spanish treasure ships and buried their loot on islands in the Caribbean.
In summary, Spain’s gold was used for a variety of purposes, including funding expansion and trade, but it was also a target for theft and piracy. As historian Hugh Thomas notes, “The gold of Peru helped to finance the Industrial Revolution in Europe, but it also caused untold misery and death in the name of greed.”
Here is a table summarizing some of the major factors affecting the fate of Spain’s gold:
| Factors Affecting Spain’s Gold |
|---|
| Used to fund wars and empire-building |
| Used to finance exploration and trade |
| Targeted by pirates, privateers, and rival nations |
| Some lost to mismanagement and corruption |
| Sparked myths and legends, including El Dorado |
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The discovery of silver in South America during the mid-15th century led to Spain’s transformation into a great power and the rise of silver as a global currency. Silver became the most important and lucrative resource during the colonization of the Americas and the rapid expansion of Potosi in Bolivia. The influx of wealth transformed Europe, financed wars, and shaped modern capitalism. However, the Spanish Crown’s control over the colonies led to revolts, wars, and eventually, the independence of its American colonies. The global impact of Spanish silver also contributed to the fall of the Chinese Empire.
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Most of the gold reserves held inside until 1936 were sent to the Soviet Union during the Spanish Civil War.
I am confident you will be intrigued
What happened to all the gold the Spanish took?
The gold was used by the Spanish monarchy to pay off its debts and also to fund its ‘religious’ wars. Therefore, gold started to trickle out to other European countries who benefited from the Spanish wealth.
What happened to the Spanish gold reserves?
Response to this: In October 1936, the Republican government headed by the leader of the Spanish Socialist Workers’ Party (PSOE) Francisco Largo Caballero, with Juan Negrín as Minister of Finance, agreed to transfer three-quarters of the gold reserves of the Bank of Spain to the Soviet Union.
What happened to all the Inca gold?
The reply will be: Most of the gold and silver had been melted down, but a handful of the most beautiful pieces of Inca metalwork were sent along intact. These were displayed for a time in Spain before they, too, were melted down. It was a sad cultural loss for humanity.
How much gold did Spain steal from the New World?
Answer will be: Between 1500 and 1650, the Spanish imported 181 tons of gold and 16,000 tons of silver from the New World. In today’s money, that much gold would be worth nearly $4 billion, and the silver would be worth over $7 billion.
Why did the Spanish buy gold?
The reply will be: The gold was used by the Spanish monarchy to pay off its debts and also to fund its ‘religious’ wars. Therefore, gold started to trickle out to other European countries who benefited from the Spanish wealth. The Spanish also were able to purchase an unprecedented quantity of imported goods from around the world – including Europe and China.
Where did the Spanish mine gold in South America?
Answer: Precious metal mines were opened and exploited by the Spanish across South America for all they were worth. Major mines included the Cauca Valley mines in Colombia (opened in 1540), Potosí (1545) and Oruro (1595) in Bolivia, and the Castrovirreyna (1555) and Cerco de Pasco (1630) mines in Peru.
What was the consequence of Spain gaining gold from the Incas?
There’s an interesting chapter about the consequence of Spain gaining a large quantity of gold and silver from the Incas during the Sixteenth Century. Almost overnight, Spain became very rich taking home unprecedented quantities of gold and silver. These were stolen from the Incas and the mines that the Spanish came to control.
What percentage of the New World Gold went to Spain?
Answer: One researcher estimates that 10 to 15 percent of the New World gold intended for Spain never got there due to theft, piracy, or other mishap. Nonetheless, that leaves 85 to 90 percent that did make it, along with tons of silver, which began to be mined in quantity toward the end of the 16th century. Where did it go?
Why did the Spanish buy gold?
Response to this: The gold was used by the Spanish monarchy to pay off its debts and also to fund its ‘religious’ wars. Therefore, gold started to trickle out to other European countries who benefited from the Spanish wealth. The Spanish also were able to purchase an unprecedented quantity of imported goods from around the world – including Europe and China.
Are Spanish gold deposited 20 years ago in the Soviet Union still used?
Response will be: A few foreign newspapers are in the business of publishing articles about the Spanish gold deposited twenty years ago in the Soviet Union, without mentioning all the consumption of such gold by the Spanish Republican government, which confuses the public opinion creating the impression that there is still non-utilized leftovers of such gold.
What was the consequence of Spain gaining gold from the Incas?
The reply will be: There’s an interesting chapter about the consequence of Spain gaining a large quantity of gold and silver from the Incas during the Sixteenth Century. Almost overnight, Spain became very rich taking home unprecedented quantities of gold and silver. These were stolen from the Incas and the mines that the Spanish came to control.
How much gold did Spain have in 1936?
Answer to this: According to the statistics of the Bank of Spain as published in the official Spanish government newspaper on July 1, the existent gold reserves on June 30, 1936, three weeks before the start of the conflict, reached a value of 5,240 million Spanish pesetas.