The Spanish dollar, also known as the piece of eight or eight-real coin, or “Real de a Ocho” in Spanish, holds a significant place in the history of global trade and finance. It played a vital role in shaping international commerce, including the economic development of the Americas, Europe, and Asia.
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Design of the Piece of Eight
The Piece of Eight was roughly the size of a modern-day US silver dollar, weighing around 27 grams and containing nearly pure silver. The obverse typically featured the Habsburg shield and the Pillars of Hercules, symbolizing Spain’s powerful reach across the Atlantic. The reverse often displayed the coat of arms of the ruling Spanish monarch, making each coin a small, portable piece of propaganda as well as a medium of exchange.
16th Century: The Birth of the Spanish Dollar
The Spanish dollar’s history begins in the late 15th century when Spanish explorers and conquistadors, like Christopher Columbus and Hernán Cortés, established contact with the indigenous civilizations of the Americas.
The silver mines of Mexico, particularly in places like Potosí (in present-day Bolivia) and Taxco, yielded vast quantities of silver. This influx of precious metal allowed Spain to mint large quantities of silver coins.
The Spanish government standardized the eight-real coin, which contained 27.07 grams of silver. It was divided into eight pieces of one-real coins, also known as “bits,” making it easily divisible for trade.
17th Century: Global Trade and Dominance
The Spanish dollar quickly gained popularity as a trade currency not only in Spain and its colonies but also in Europe, Asia, and North America. It became the world’s first global currency.
Spanish trade routes and galleon fleets, known as the “Spanish treasure fleets,” transported silver coins from the Americas to the Philippines and back to Spain. These galleons played a pivotal role in connecting various parts of the world through trade.
The Spanish dollar was widely accepted and recognized for its uniformity and consistent silver content. It became the basis for many other countries’ currencies.
This is the Spanish Dollar coin used to create the Australian Holey Dollar.
18th Century: The Decline
As the Spanish Empire’s influence waned, other countries began to mint their own versions of the Spanish dollar. These copies often had variations in design and silver content.
By the late 18th century, the Spanish dollar’s dominance began to decline, but it still circulated in many regions.
19th Century: Transition and Legacy
The prominence of the Piece of Eight began to wane in the 19th century.
The Spanish American colonies gained independence from Spain in the early 19th century, leading to the establishment of new nations in Latin America. Many of these newly independent countries continued to use the Spanish dollar as the basis for their own currencies.
As national economies grew more complex and diversified, countries started issuing their own standardized currencies. The discovery of gold in California and Australia also shifted the global focus from silver to gold, further diminishing the role of the Piece of Eight.
The United States also had a history of using the Spanish dollar as a standard currency, which influenced the design of the U.S. dollar.
In 1857, the United States Congress passed the Coinage Act, which officially ended the circulation of foreign coins, including the Piece of Eight, in the U.S. This marked the end of an era, but the legacy of the Piece of Eight lived on in the form of the U.S. dollar and other currencies that followed its example.
Despite its gradual disappearance from everyday commerce, the legacy of the Spanish dollar continued in various forms. It influenced the design of coins in numerous countries and left an indelible mark on numismatics.
Today, the Spanish dollar lives on through its influence on global coinage, trade, and the economic history of the Western Hemisphere. Collectors and historians still find it intriguing and historically significant as they trace the journey of this iconic coin through time.
Tips for Collectors
If you’re considering adding a Piece of Eight to your collection, here are a few tips:
- Research: Familiarize yourself with the different types of Pieces of Eight and their historical contexts. Understanding the nuances of mint marks, dates, and designs can help you make informed decisions.
- Condition: Look for coins in good condition with legible details. Coins with minimal wear and clear designs are more valuable.
- Provenance: Coins with documented histories, particularly those linked to famous shipwrecks or historical figures, can be especially valuable.
- Authenticity: Beware of counterfeits. Purchase from reputable dealers and consider having coins authenticated by professional numismatic organizations.
Pirates and Pieces of Eight
No discussion of the Piece of Eight would be complete without mentioning pirates. These coins are often associated with the golden age of piracy, immortalized in literature and film.
Pirates, privateers, and smugglers favored Pieces of Eight because of their high silver content and universal acceptance. Treasure chests filled with Pieces of Eight have become iconic symbols of pirate lore.
Treasure Island
In Robert Louis Stevenson’s classic Treasure Island, Captain Flint the parrot, belonging to the pirate Long John Silver, continually screamed “pieces of eight!” The last few sentences of the book read:
The bar silver and the arms still lie, for all that I know, where Flint buried them; and certainly they shall lie there for me. Oxen and wain-ropes would not bring me back again to that accursed island; and the worst dreams that ever I have are when I hear the surf booming about its coasts or start upright in bed with the sharp voice of Captain Flint still ringing in my ears: “Pieces of eight! Pieces of eight!”
Search the Pre-Decimal Coins on eBay here
Further Reading on Rare Coins
A Guide Book of United States Coins 2022 75th Edition Spiral-bound by Garrett, Jeff, Bowers
Paper Money – North America – Australia – Oceania: COLOR PHOTOGRAPHY Paper money – Old and Rare Banknote (Banknotes of the world)
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