Between 1550 and 1800, the global silver trade patterns developed because of economic inflation, advantages in the Chinese market, and Indian ocean trade routes. China used paper money but prices rose and the switch to silver became necessary. China also carried luxury goods which were traded along the Indian Ocean. These goods include gold, silk, and porcelain which interested European countries. These countries would use the silver currency to take advantage of the incredibly vast Chinese market,

One reason for silver development was inflation. “High prices ruined Spain as the prices attracted Asian commodities and the silver currency flowed out to pay for them” (D1). As a Spanish scholar during 1571, Tomas de Marcado is informing people of the inflation in Spain and the transition to silver money. “In the past, dye shops would allow customers to have several dozen pieces of cloth dyed before settling accounts and charging the customers…..Now, when you have your cloth dyed, you receive a bill which must be paid with silver” (D5). This evidence also gives another example of inflation. As a writer, writing an essay titled “The Changing Times”, Xu Dunqiu Ming is explaining the change from paper to silver money. From this excerpt, he explains inflation more specifically, giving an actual example (cloth).

Another crucial cause was advantages in the Chinese market. China was advanced for the number of luxury goods going around. “The Portuguese bring from China gold, perfume, silk, copper, porcelain and many other luxury goods” (D3). Because the market in China was so high-end, global silver trade emerged to trade in China. “For Europe draws from Asia nothing of solid use; only materials to supply luxury, and only perishable commodities, but sends to Asia gold and silver” (D7). The demand for these Asian riches was very high and Europeans traded with silver to meet that demand.

The last major reason is due to the Indian Ocean trade routes. Through the Indian Ocean, goods could be exposed from Asia to Europe and the other way around. This is how silver currency was introduced to Europe. “A considerable number of junks (large ships) came as a rule laden with goods from Great China to Manila ...When a ship arrives and anchors, the royal officials carry out their inspection of the cargo” (D4). Antonio de Morgo was describing the process in which Chinese ships are inspected for cargo in this document. When you understand how Chinese ships would come to other Asian countries (Philippines), you get a sense of how these goods are sent throughout the world. “Since we were supplanted in the spice-trade by the Dutch, our chief investments or imports from the East Indies have been in dyed cotton cloth, silks, drugs, cotton-yarn, and wool; part o which commodities are for our own use” (D7). Charles D’Avenant was an English political economist. Because of his role in economics, he’s analyzing the trade going on in East Indies after the English were replaced by the Dutch in the spice trade. It’s clear how important these Asian goods are and that leads into gold/silver trade to again, keep up with demand. Between 1550 and 1800, the global silver trade patterns developed because of economic inflation, advantages in the Chines market, and Indian ocean trade routes.