When we think of flowers, we think of a lot of things; happiness, celebration; comfort. What most people don’t think of is high finance trading. But the fact is there was a time when a tulip bulb was worth more than a HOME!!
In 1593, botanist Carolus Clusius brought tulips from Constantinople to Holland for research. He refused to give or sell any to the locals so some of his neighbors stole some of these exotic new bulbs. This started the Dutch tulip trade. Over the next seventy years the tulips increased dramatically in popularity and price.The Tulip Bulb Mania was the rapid rising in price of the tulip bulbs that had just been introduced into Holland.
During the Tulip Bulb Mania people throughout Holland were speculating with tulip bulbs trying to make a profit. During the Tulip Bulb Mania the bulbs were traded on local market exchanges. People traded everything for these bulbs. They never intended to plant the bulbs. They were purchased with the intention of selling them again for a higher price. Property, animals and money were all traded for these bulbs. Some varieties of tulips could cost more than an Amsterdam house at the time.
Eventually the tulip market began to decline as some people began to liquidate their tulips bulbs and other tulip bulbs were introduced to the supply. Quickly after this, there was a panic in which everyone started realizing that tulips were not worth the prices. people were paying for them. In less than 6 weeks the tulip prices crashed by over 90%. When the mania was over, the price of tulips dropped from a high of $76,000 to less than one dollar.
The tulips trade infused a great deal of money into Holland, and then almost broke the country. Amazing what one little bulb could do to change a countries fortune! – Kimm
Article submitted by:
Naples Floral Design