The discovery and subsequent conquest of America was one of the most sensational news of the fifteenth and sixteenth centuries, especially for the economy of Spain because it was at this time when the Empire had a great entry of resources of all kinds. But this abundance also meant a fall in the value of the bright metal which has recovered, proportionally, after 533 years and the fault has been of the Peninsula.
The reasons for the variation in mineral resources prices
Prices are variable by multiple factors, the most binding are geopolitics, economic and financial since, although they are considered a physical asset, in a matter of cost as well as all goods, it behaves depending on the relationship between supply and demand. The latter, in turn, is influenced by several causes such as continuous inflation and interest classes.
For example, When inflation increases and interest falls, the price of gold risessince it is taken as a value reserve and becomes more attractive to investors. They also have to do wars, political and production instability, among others. The funny thing is that this part of the market economy has been working for several centuries, especially in Spain with this bright metal.
Spain and the price of bright metal
When we refer to bright metal, we are talking about gold that was highly valued there in the late 1400 when America was discovered by Christopher Columbus. This was a market that was considered solid, especially for the investors of the time since its price was quoted, with its adjustment for inflation, in about $ 3100 the ounce. But because of Spain this began to change.
Since, as of 1492, the Peninsula began to place large amounts of minerals in the market among which was the gold that came from its farms in conquered territory (although we had a large mine that was exploited by the Romans). Finishing the fifteenth century and the beginning of the XVI great ships arrived in Seville.
Loaded with gold and other precious metals, which triggered inflation never seen before, although for those years this concept was not known. This caused a price drop, which was directly related to a great offer, which exceeded demand. This trend towards the fall remained through the centuries, to finally stabilize at levels well below than those reached in 1492.
Spain maintained its prices in an average of $ 630, the ounce during the eighteenth and nineteenth centuries with small fluctuations caused by clashes such as Napoleonic wars, the first and second world war and the great depression. While all these events did not cause large variations in the cost of gold, they did help their prices be kept below their real value.
And what happens in this 2025 with the bright metal?
In recent years, the price of gold remained more or less stable but the financial crisis of 2008 fired them again. But now in 2025, 533 years after the discovery of America, after great wars, revolutions, depressions, crisis and pandemia, gold prices in Spain have returned to position themselves, with the adjustment for inflation, exactly the same ones that I had at the end of the fifteenth century.
In conclusion, gold prices were very depressed since 1492 because Spain flooded the market with this precious metal (something similar will happen if the peninsula decides to exploit the largest mine in Europe that is in its territory). Now, 533 years later, after different conflicts and events worldwide prices, with inflation adjustment, are the same as for that time.
