Huge supplies of New World gold reach Spain

On average between 1,000 and 1,500 kg. of gold reach Spain each year during this period. Initially these supplies are obtained by plunder, especially from the Aztecs and Incas, and later by applying new mining methods to the New World gold deposits.

Pizarro lands in Peru and begins the conquest of the Incas

The Incas were unique in reaching a high degree of civilization without the use of money eventhough they possessed huge amounts of gold and silver.

The Price Revolution in Europe

Europe, including Britain, experiences a prolonged period of inflation, partly because of the huge influx of gold and silver from the Spanish colonies in America and partly because the increase in population is not matched by an increase in the output of the economy.

The Great Debasement

Henry VIII debases the coinage of England as a means of raising revenue.

Elisabeth I begins the reform of England‘s debased coinage

This is a first step towards the complete replacement of the debased coinage she inherited from her predecessors. The debased coins are recalled and melted down.

In this year 345,000 kg. of Peruvian/Bolivian and Mexican silver are shipped from Acapulco to China.