The Gold of America: How the Habsburgs Squandered the Riches of the New World

At the heart of the Spanish Empire, the Habsburgs rose as titans of politics, culture, and economics in Europe. With the arrival of gold from America, the House of Habsburg became a symbol of power and opulence. However, behind their dazzling grandeur lies a story of waste and ruin. This article reveals how the splendor of the New World's riches transformed into a dark path toward decadence.

The Early Expeditions and the Uncontrolled Flow of Gold

From the moment Christopher Columbus reached the American shores in 1492, the Spanish Empire began to amass unprecedented wealth. The arrival of the Habsburgs on the Spanish throne in 1516, with Charles I at the helm, marked the beginning of a golden era. According to the chronicler Gonzalo Fernández de Oviedo, the discovery of vast gold deposits in Peru and Mexico generated a torrent of wealth flowing into Spain. By 1533, Pizarro had conquered the Inca Empire, reporting a loot of over 12 tons of gold and silver, which left Europe astonished.

Despite reports of riches, the House of Habsburg failed to manage these treasures effectively. Instead of investing in the development of the empire or fostering trade, Charles I and his successor Philip II plunged into a whirlwind of excessive spending. The luxurious courts of Brussels and Madrid became the epicenter of extravagance. The construction of the magnificent Royal Palace of Madrid, which began in 1738, was just one example of how the gold from America slipped through the fingers of the sovereigns.

Wars and Debts: The Price of Power

The Habsburgs not only squandered the riches of the New World on ostentation; they also embarked on costly wars that led the House to ruin. L