You might have heard Dutch Tulip Mania and wondered what that means.
Was it really that crazy?
Here is a fun, short article on the history of the first market bubble.

You’re wrong if you think market bubbles are just something from our modern times.
There was a tulip bubble before the housing crisis or the dot.com bubble.
Almost 400 years ago.
The tulip market crash in 1637 started with serious collectors and ended in pure gambling.
Here’s what happened:
Regular trade had buyers inspecting and paying for tulip bulbs in summer.
By 1634, people had started buying bulbs still in the ground using paper promises.
They paid by weight, betting the bulbs would be worth more at harvest.
Ordinary workers joined in, putting down deposits they couldn’t afford.
Prices went crazy – some bulbs jumped 20 times in value within one month.
The highest price for a tulip bulb sold in 1637 at the peak of the craze was 5.200 guilders.

To put that in perspective:
Rembrandt’s most significant painting – The Night Watch (on view in the incredible Rijksmuseum), was sold for 1.600 guilders.
The average annual salary working at the time was 250 guilders.
You tell me: four, maybe five Rembrandt paintings, 20 years of salary, or one tulip bulb.
Just one tulip bulb that would expire in no time after flowering 🤯!
It’s mind-boggling to me, is it for you too? Let me know in the comment section below.
These trading documents indicate greed.
Here is an example where a trader named Gaergoedt is pushing someone to invest:
“You can barely earn ten percent in regular business, but with Flora it’s a hundred for one, sometimes a thousand.”
Another trader saw the problem coming:
“You offer me a lot but I fear once I start, I will want to go on with it. One deal would bring forth another.”
It all ended on February 5, 1637. Buyers stopped showing up at auctions.
Prices collapsed.
Here are the fascinating details about how it all played out.
The authorities’ first solution failed utterly.
They suggested each buyer pay a 10% penalty to cancel their contract.
The problem was that most buyers had already resold their paper promises.
Each sale would need tracking down.
Ultimately, the government allowed traders to cancel their contracts for tiny penalty payments of 3.5%.
As one trader said:
“The money which has been promised cannot be found.”
Here’s what killed the market:
Everyone started questioning trust.
Buyers worried if they’d get the right bulbs.
Sellers feared not getting paid.
One weaver had sold his loom and mortgaged his house to buy bulbs.
When asked why, he said:
“It has been a madness.”

The social impact on Dutch society was enormous.
Most tulip buyers came from the textile trade – weavers, dyers, and merchants.
They got in because they understood how valuable rare items could be.
Their whole business was luxury fabrics.
A skilled craftsman earned about 150 guilders a year.
Ordinary workers started trading cheap tulips like poker chips.
They didn’t need cash – they paid in kind, trading furniture or work tools as deposits.
The painter Jan van Goyen shows how bad it got.
Just days before the crash, he traded two paintings plus 1,800 guilders for forty tulip bulbs.
He died poor twenty years later, still owing tulip debts.
The timing made it worse.
Spain threatened invasion, and the plague killed 20% of Amsterdam that year.
In this chaos, the Dutch Tulip Mania flourished.
The “life is short” attitude and the eagerness for something cheery and bright pushed people to gamble.
When it crashed on February 5, 1637, it left a timeless lesson:
Markets can make people crazy, but they always return down to earth.
All of this happened in the 1600s.
But it doesn’t have a bad ending, after all…
Today, the Netherlands is the world’s largest flower exporter and is famous for its tulip fields.

Why not visit them yourself?
Here is my article on the Keukenhof Flower Garden.
Or you might, just like the Miller Family, book me for a private tour; here is more information.
And see the beauty in person.
Another tip is to visit the Flora Holland Auction.
Here, millions of flowers get auctioned every day.
The great thing about the flower auction is that it’s open year-round, not just in tulip season.
Frequently Asked Questions About Dutch Tulip Mania
How much was the most expensive tulip bulb during the Dutch Tulip Mania?
The most expensive bulb, the Semper Augustus, sold for 5,200 guilders in 1637 – enough to buy a luxury canal house in Amsterdam.
Did the Dutch Tulip Mania crash the Dutch economy?
Contrary to popular belief, the crash had a limited impact on the Dutch economy. While some traders went bankrupt, the overall prosperity of the Dutch Golden Age continued.
Where can I learn more about the Dutch Tulip Mania in Amsterdam?
Visit the Amsterdam Tulip Museum near Anne Frank House (although come prepared, it’s more a shop than a museum), but they have some interesting information. The Amsterdam Museum has exhibits about the Golden Age, including the Tulip Mania period. Both museums are free to enter with the I Amsterdam City Card.
Why were some tulips so expensive during the Dutch Tulip Mania?
The most valuable tulips had a virus that created striking color patterns. These ‘broken tulips’ were rare and took years to grow, making them extremely valuable. But much more than that. It was pure speculation and was never really about the bulb itself because even standard bulbs reached incredible prices during the Dutch Tulip Mania.
When is the best time to visit Amsterdam to learn about Tulip Mania?
Winter (January-March) is best for learning the history without crowds. The actual tulip season (March-May) is hectic, but let you see today’s tulip fields, too—something not to be missed. I wrote an article about Dutch Flower Art, and if you want to visit during Tulip Season, my article “Best Time To See Tulips In Amsterdam” is one not to miss.