The discovery of American silver and its subsequent influx into Europe and Asia had a significant impact on the growth of world trade, to the extent that it is accurate to say that the growth in trade at this time laid the foundations for a world economy. In the Early Modern Period there was a world market for silver, and "silver was a product produced for profit just like any other commodity." The discovery of silver in the Americas led to an increase in trade between the silver markets of the world. In particular, silver was widely used by Europeans to acquire goods from Asia. This increase in trade and the routes through which it was conducted, laid the foundations for a world economy. In the context of this essay, the concept of a "world trade" in the 16th and 17th centuries refers to the trade that took place between parts of Europe, Asia, and the Americas. It is necessary to be specific about the areas that engaged in this "world trade", as many regions of the world were not involved. However, in the world of the Early Modern Period, Western European expansion was facilitated by American silver in a number of respects. Unquestionably, the primary ben

7. Richards, J.F., (ed.), Precious Metals in the Later Medieval and Early Modern Worlds, (North Carolina: Carolina Academic Press, 1983)

The discovery of American silver contributed to an increase in the power of Western European countries and ultimately, their dominance over much of the world. As has been mentioned, the discovery of American silver increased the viability of the relatively new sea routes to Asia. What is highly significant about these routes (in addition to the creation of a "world trade system") is that they were European controlled. Portugal's monarchy attempted to dominate this route and "inter-Asian commerce...was subjected to Portuguese taxation." By the 1530s however, Portugal was unable to prevent other "European interlopers" from becoming increasingly involved. In particular, "the powers which gained ascendancy over Spain in the seventeenth century - the British and Dutch - largely controlled the new channels of trade." Previously, the only option available to European merchants wanting to trade with Asia had been conduct their trade via the Levant. Following the Portuguese example, European knowledge of Asia increased as did (ultimately) European influence in and control of the Orient. American silver contributed to the establishment of the trade route which facilitated the physical means of European expansion. The discovery of American silver also contributed to an increase in Western European power in that economic activity was transferred "from central Europe to the Atlantic seaboard." The central European mines which were previously the largest source of silver in Europe, became uneconomic (with the exception of the most productive mines) when the abundance of American silver was discovered. As a result "the smelting of...metals and...various metal working industries" declined in these regions, and Western Europe became the centre of industrial activity. A growth in world trade also resulted from the colonization of the Americas, and the commodity production that accompanied this. American silver played a very important role in the colonization, and according to Richards, "New World Bullion greatly accelerated the process of settlement in the Americas." An example of this can be seen in Mexico where "by 1608...some 4500 people had settled permanently in a place where until 1548 there had been none." Flynn attributes the importance of silver in regards to the colonization of the Americas to the extent that he theorizes that without silver there would have been no, or at least a much smaller Spanish empire than that which was established. Flynn also suggests that the incredible amount of silver procured by the Spanish was the envy of other Western European nations and ultimately resulted in a move towards colonization and the control of trade through military superiority. In addition to hastening the colonization of the New World the silver from the Americas also contributed to a move towards commodity production. According to Perkins, "the imbalance in Europe's commodity trade with Asia, involving a drain on the silver acquired from the Americas, was undoubtedly a major stimulus to the effort to develop the 'West Indies' - the Americas as an alternative source of supply of desired products of the Orient."

In conclusion, as has been seen, American silver made a substantial contribution to the growth in world trade between Europe, Asia, and the Americas. The high value of silver (to its weight), along with its durability and the world wide recognition of its value, increased the practicality of the new sea-trade routes to Asia. The shift to capitalism in Europe and subsequent increase in Western European power were also facilitated by discovery of American silver. The most important consequence of the enormous influx of silver however, was that it enabled Europe to balance trade with Asia. In this sense, American silver was "instrumental in the creation of an integrated world economy."

Some common words found in the essay are:
Western European, According Flynn, Europe Asia, John Perkins, South America, China Chinese, Cape Hope, Modern Period, Americas West, East India, american silver, discovery american silver, discovery american, world trade, value silver, precious metals, trade route, silver world, world economy, europe asia, western european, american silver world, silver world anales, world anales 2, 2 2 1993,
Approximate Word count = 2677
Approximate Pages = 11 (250 words per page double spaced)