In the early 17th century, the discovery of silver in the Kongsberg area played a crucial role in Norway’s economic development. According to legend, in July 1623, two children named Helga and Jacob stumbled upon silver on Gruveåsen hill while shepherding cattle. Their father, realizing the value of the metal, tried to sell it in Skien but was arrested on suspicion of theft. To avoid punishment, he revealed the silver’s source in Southern Sandsvær, later known as Kongsberg.
However, silver mining in the area had existed long before this discovery. As early as 1539, Christian III had initiated silver mining in Gruveåsen with German experts. The mines were closed in the 1540s due to a sharp drop in silver prices, caused by an influx of silver from Spanish Latin America. By the early 1600s, demand for silver increased again, driven by European trade with China and the East.
In 1623, Danish admiral Ove Gjedde, after returning from India as part of Christian IV's efforts to expand Denmark-Norway’s trade empire, was tasked with reviving the silver mines in Kongsberg. This led to the formal establishment of the Kongsberg Silver Mines, or *Kongsberg Sølvverk*, in 1624 when King Christian IV visited Norway and officially founded the town of Kongsberg. The silver mines became a major economic driver for Norway, contributing to its revival during the reign of Christian IV, alongside the timber industry. The King’s Mine (*Kongens gruve*) became the largest and most significant mine in the area.