Inflation in the era of the silver guilder

Some people think back with nostalgia to the time of the guilder, because prices have risen sharply with the introduction of the euro. The nostalgic longing for the time when the guilder still had intrinsic value must also be critically examined, because even in those days the value of money was eroded. Not as refined and subtle as it is today, but by simply lowering the intrinsic value of the coins once in a while.

The silver guilders and rijksdaalders that were minted from 1840 onwards by successively King William I, Willen II and William III were not only much heavier than the coins that were in circulation in the twentieth century, they also had a much higher silver content. Apart from the collector's value of these old guilders and rijksdaalders, they also contained more than twice as much precious metal as the silver coins that were minted after the Second World War.  World War were put into circulation.

Devaluation of the guilder

The first devaluation of the coins took place in 1929 under Queen Wilhelmina. The weight of the rijksdaalders and the guilders remained the same, but the silver content of the coins was reduced from 94.5% to only 72%. As a result, the intrinsic value of money fell by almost 24% from one moment to the next, while the face value remained the same. 

After the Second World War, the silver coins were made a bit smaller under Queen Juliana. The weight of a rijksdaalder went from 25 to 15 grams, while the weight of the guilder was reduced from 10 to 6.5 grams. A devaluation of 40% for the rijksdaalder and 35% for the guilder!

Silver rijksdaalders became less valuable over time

Less and less silver in the guilder

From silver to nickel

After 1967, all guilders and rijksdaalders were made of nickel, leaving no intrinsic value at all. That was cash register for the government, because the difference between the production costs and the face value benefited the state treasury. In 1967 it was a profit of 92 cents for every guilder and a profit of 2.35 guilders for every rijksdaalder that was minted.

Voltaire said more than 200 years ago that money will eventually return to its intrinsic value. That is indeed the case, because the nickel guilders and rijksdaalders are today as good as worthless, while Dutch silver coins is still trading at the value of silver.

Silver guilders and rijksdaalders