Several other factors can be argued to have influenced the price revolution, such as population growth or urbanization, but the main factor that caused it to happen was trade. As is seen with most economic booms in history, the price Revolution was sparked by trade. The two major trading empires of western Europe during this time were Spain and Portugal. Each of these countries were looking to gain access to more trade in the middle and far east. The abundant resources and manufactured goods had the potential for high profit that could be made in the European market. This potential drove both Spain and Portugal to invest much to find alternate roots to the east. Everything changed in 1492 when Columbus discovered the new world. In the new world, the Spanish conquered the indigenous people and found large supplies of silver and gold, as well as other resources. New world trade brought new resources and products to Europe that strengthened the economy. Also, the silver and gold was able to be made into coins that served as currency. The influx of coins prompted prices to rise as always happens when more money is put into circulation. Also, the Portuguese now had control of trade in the East. As well as the far east, they were able to open up trade in Africa, which allowed them to bring more resources to Europe. Demand was high and the merchants were able to sell at high prices. Along with merchants and local business people, money was spread through the financing of wars by Spain. This economic “revolution” marked a period of great change and development which had many effects both short term and long term.
Trading and colonization map of the major European empires
Spanish Silver coin, also know as a "piece of eight" Replica 18th Century Spanish coins made from New World gold