How did the Spanish Empire primarily finance its military endeavors in the 16th century?

The Spanish Empire primarily financed its military endeavors in the 16th century through exploration and conquest. During this period, Spain expanded its territories significantly, especially in the Americas, where it established colonies brimming with valuable resources. The wealth acquired from these conquests, particularly gold and silver from mines like those in Potosí and Zacatecas, played a crucial role in funding the military campaigns and maintaining a strong naval presence.

The influx of precious metals not only filled the Spanish coffers but also allowed the empire to finance its armies and maintain dominance over its territories and rivals. This method of financing through the spoils of exploration and conquest was emblematic of the imperial strategies employed by European powers during the Age of Discovery and the subsequent colonial period. Consequently, the wealth generated from overseas conquests provided a crucial source of revenue for military and administrative expenses.