BRITISH, Hanover. Victoria, 1837-1901. Medal 1842 (Gold, 13 mm, 1.99 g, 12 h), on the extraction of gold from captured Chinese silver, London. THIS GOLD / DISCOVERED IN / SYCEE SILVER / THE PRIZE OF BRITISH / ARMS IN CHINA / WAS EXTRACTED / AT H.M. MINT / MARCH / 1842 in nine lines; above, crown. Rev. THE R.T HON / W. GLADSTONE / MASTER / BY A PROCESS FIRST / APPLIED TO THE PUBLIC / SERVICE AND TO THE / BENEFIT OF BRITISH / COMMERCE UNDER / THE R.T HON. / J.C. HERRIES / 1829 in eleven lines. BHM 2070. Eimer –. Exceedingly rare and of great historical interest. Tiny scratches, otherwise, virtually as struck.


The China trade began as a distinctly one-sided affair, driven by a strong Western demand for Chinese goods but little interest in Western products within China. This imbalance shifted in the early 19th century when the British discovered a highly desired commodity: Indian opium. They began trading it to the Chinese in exchange for silver, reversing the flow of specie. Previously, silver from the New World and Europe had poured into China to pay for tea and porcelain, enriching the Qing dynasty’s coffers. Now, Chinese silver flowed westward to pay for the addictive drug.

Opium not only debilitated the population but also drained the state treasury. In 1839, China responded by banning the opium trade and seizing all stocks. Great Britain, unwilling to accept the prohibition of such a profitable enterprise, escalated the dispute into war. The Royal Navy’s steamships and modern rifles easily overpowered the antiquated Qing forces. The conflict concluded in 1842, marking the start of what is often called China’s 'Century of Humiliation'.

The Treaty of Nanking, signed in 1842, forced China to cede Hong Kong to the British and pay an indemnity of 21 million silver dollars. So much silver was transferred to Britain that, when melted down at the Royal Mint, trace amounts of gold were extracted. This gold was used to produce a series of small commemorative medals, to which this piece belongs to.