Tulips. We know them as the bright, happy harbingers of spring.

However, if you went back to Denmark during 1636-1637, you would have witnessed a very different perspective on the humble flower.

Let’s get into that.

The scene is 17th century in the Netherlands. The Dutch Golden age is in full swing. New schools of thought are being introduced. Incredible militaristic and scientific advancements are being made. People are experimenting with art; a strong focus on color, light, and realism is yielding groundbreaking results.

In short, the Dutch were incredibly inspired; they were feeling more enterprising and creative than ever before.

Enter, tulips.

Tulips were brought over to Europe from the Ottoman empire during the late 16th century. They gained popularity in the Netherlands after a Dutch botanist began to cultivate them. No longer formally under the reign of the Spanish, the Dutch were free to trade as they liked. The economy prospered and people had money to burn. Goods seen as “exotic” became highly desirable; the tulip, seen as a symbol of luxury and royalty in the Ottoman empire, fit this bill.

The variety of colors, vibrancy, and ability to tolerate the chilly climate of the Netherlands were initially what made tulips popular. It was later that the phenomena of “tulip breaking” began to bring their real value. Tulip breaking made for beautiful multi-colored striping on tulips. It was later discovered that it was a virus that was responsible for these highly coveted variations.

At the height of tulip mania, specific tulip varieties could go for as high as 10,000 guilders. At the time this was about the same price as a fancy town house in Amsterdam. In 1637 the tulip was the fourth most exported product in the Netherlands, followed by gin, herring, and cheese.

Contrary to popular belief, merchants and artisans were primarily the ones who took part in this mass purchasing of tulips. At the exorbitant prices they fetched, it made sense that only these groups could afford to purchase them. Tulips were seen as symbols of wealth and to own the rarest and most beautiful ones further denoted your status.

The tulip trade flourished until February 1637 when people realized the trade had become unsustainable. As a result, bulb contract prices collapsed abruptly. No one was showing up to the once-popular tulip auctions. Futures contracts were no longer being delivered. People were simply no longer willing to pay such outrageous prices for flower bulbs. Some historians say that the arrival of the plague in Haarlem may have altered Dutch priorities and contributed to the shift away from tulip speculation.

The facts surrounding Tulip Mania have been greatly exaggerated over the course of history. In fact, no real “mania” was ever documented. Only a small percentage of people were impacted by the crash. This was chiefly those who had bought contracts in the hope that the tulips market value would continue to rise. These unofficial contracts changed hands more than the tulips themselves and were where the real money was made in the tulip trade.

As the demand for tulips fell people were no longer willing to pay back the exorbitant prices they had previously agreed to in past contracts. Sure, some people lost money but it was not to the point of financial ruin. No instances of bankruptcy resulting from Tulip Mania were ever documented.

How’s that for a story?

What are your thoughts on Tulip Mania? Do you know of any instances where weird things were used as currency?

Learn more:

• https://www.youtube.com/watch?v=Zr3FcXeDZFc (a short video detailing an accurate and complete history of Tulip Mania)
• http://theconversation.com/tulip-mania-the-classic-story-of-a-dutch-financial-bubble-is-mostly-wrong-91413 (an informative article debunking common myths about Tulip Mania)