At the height of Tulip Mania, a single tulip bulb could cost more than a luxury house in Amsterdam.

Tulip Mania occurred during the Dutch Golden Age, specifically peaking between 1634 and 1637. The most prized tulips featured 'broken' color patterns, which were actually caused by the Tulip Breaking Virus (TBV). This virus, spread by aphids, caused the petals to display vivid streaks and flames of different colors, making them rare and highly unpredictable.The most famous variety, the Semper Augustus, was so rare that only a few dozen existed at any given time. In early 1637, records show one bulb offered for 5,200 guilders. To put this in perspective, a typical Dutch merchant earned about 1,500 guilders a year, and a grand house on a fashionable canal in Amsterdam cost roughly 10,000 guilders.Economist Peter Garber and historian Anne Goldgar have extensively studied this period to understand the mechanics of the bubble. They noted that the trade moved from actual bulbs to 'paper' contracts, a precursor to modern futures markets. This allowed people to trade bulbs that were still in the ground, fueling rapid price increases based on speculation rather than physical supply.The bubble burst in February 1637 when buyers in Haarlem failed to show up for an auction. This sudden lack of demand caused a panic that spread throughout the United Provinces. While many modern historians argue the economic impact on the Dutch Republic was less devastating than once thought, it remains the definitive example of an asset bubble in economic theory.