Many individuals suddenly became rich. Seeds from a tulip will form a flowering bulb after 7–12 years.
The traumatic tulip bulb crash resulted in a suspicion toward speculative investments in Dutch culture for a very long time after. Nobles, citizens, farmers, mechanics, seamen, footmen, maidservants, even chimney sweeps and old clotheswomen, dabbled in tulips.The increasing mania generated several amusing, if unlikely, anecdotes that Mackay recounted, such as a sailor who mistook the valuable tulip bulb of a merchant for an onion and grabbed it to eat. Economist Peter Garber collected data on the sales of 161 bulbs of 39 varieties between 1633 and 1637, with 53 being recorded by GW. As the tulip bulb bubble crescendoed, already pricey tulip bulbs experienced a twentyfold price explosion in just a single month (Investopedia, 2012).
Das Zentrum der Artenvielfalt der Pflanzengattung Tulpen (Tulipa) liegt im südöstlichen Mittelmeerraum. "The popularity of Mackay's tale has continued to this day, with new editions of Goldgar argues that although tulip mania may not have constituted an economic or speculative bubble, it was nonetheless traumatic to the Dutch for other reasons: "Even though the financial crisis affected very few, the shock of tulipmania was considerable. According to Mackay, the merchant and his family chased the sailor to find him "eating a breakfast whose cost might have regaled a whole ship's crew for a twelvemonth"; the sailor was jailed for eating the bulb.People were purchasing bulbs at higher and higher prices, intending to re-sell them for a profit. Although the final 3.5% strike price was not actually settled until February 24, Thompson writes, "as information ... entered the market in late November, contract prices soared to reflect the expectation that the contract price was now a call-option exercise, or strike, price rather than a price committed to be paid. The mania finally ended, Mackay says, with individuals stuck with the bulbs they held at the end of the crash—no court would enforce payment of a contract, since judges regarded the debts as contracted through gambling, and thus not enforceable by law.According to Mackay, lesser tulip manias also occurred in other parts of Europe, although matters never reached the state they had in the Netherlands. The very active tulip contract market eventually became an integral part of the overall booming Dutch tulip industry. Traders who sold their bulbs for a profit began to reinvest all of their profit into new tulip bulb contracts or new bulbs to sell to other Dutch citizens or to take with them on trips around the world to sell alongside with spices from the Dutch East India Company. Trading companies such as the VOC (Verenigde Oost-Indische Compagnie), commonly known as the Dutch East India Company, became dominant players in the Netherlands’ trade with Indonesia and other far-away lands. Things came to a head during the winter of 1636-37, when tulip mania reached its peak.
The As the flowers grew in popularity, professional growers paid higher and higher prices for bulbs with the virus, and prices rose steadily. The price of tulips skyrocketed because of speculation in tulip futures among people who never saw the bulbs. The brutal popping of the tulip bulb bubble ended the Dutch Golden Age and hurled the country into a mild economic depression that lasted for several years. The annualized rate of price decline was 99.999%, instead of the average 40% for other flowers. The Mania Phase. A rudimentary derivatives market, similar to modern-day options and futures contracts, eventually arose so that traders could conduct trade in tulips all year round. "Using data about the specific payoffs present in the futures and options contracts, Thompson argued that tulip bulb contract prices hewed closely to what a rational economic model would dictate: "Tulip contract prices before, during, and after the 'tulipmania' appear to provide a remarkable illustration of efficient market prices.
They were classified in groups: the single-hued tulips of red, yellow, or white were known as Growers named their new varieties with exalted titles. When a bulb grows into the flower, the original bulb will disappear, but a clone bulb forms in its place, as do several buds. The 1637 event was popularized in 1841 by the book The introduction of the tulip to Europe is usually attributed to The tulip was different from other flowers known to Europe at that time, because of its intense saturated petal color. Tulip prices steadily rose with their growing popularity and bulbs were purchased at higher and higher prices by speculators who planned to turn around and sell them for a profit, similar to modern-day house "flippers." No deliveries were ever made to fulfil any of these contracts, because in February 1637, tulip bulb contract prices collapsed abruptly and the trade of tulips ground to a halt.The lack of consistently recorded price data from the 1630s makes the extent of the tulip mania difficult to discern.