7
The Bulb Market, 1634–1637
The market for bulbs was limited to professional growers until 1634, but participation encompassed a more general class of speculators by the end of 1634. A rising demand for bulbs in France apparently drove the speculation. In France, it became fashionable for women to array quantities of fresh tulips at the tops of their gowns. Wealthy men competed to present the most exotic flowers to eligible women, thereby driving up the demand for rare flowers. Munting (1696, 911) claims that at the time of the speculation, a single flower of a particular broken tulip was sold for 1000 guilders in Paris. This was a final demand price for a consumption good and not the asset price of the bulb. Market participants could make many types of deals. The rare flowers were called “piece” goods, and particular bulbs were sold by their weight. The heavier bulbs had more outgrowths and therefore represented a collection of future bulbs. The weight standard was the “aas,” about one-twentieth of a gram. For example, if a Gouda
