The ‘discovery’ of South America leads to the development of European Colonialism because European countries, especially Spain and Portugal, were greedy of gold and silver. They expected that a heavy quantity of gold was available in South America. That’s why they settled over there in different regions. Between the time 1560 and 1600, hundreds of shipped sailed each other carrying silver from the mines of South America to Spain. The Europeans also became recognizable with new crops like potatoes and chillies. They established their rule over there with the help of military strength and gunpowder, local people resisted their rule with violence and many incidents happen consequently. But this resistance was ruthlessly suppressed by the Spaniards. They forced the local people to pay tribute. They used local chiefs for discovering new regions and new traces of gold. When other Europeans came to know about this vast reserves of gold and silver in South America then they also travelled and starting settling there. They too made the local as their slaves and forced them to work in mines and to menial jobs. Their life was enslaved and their way of life was destructed. In this way, South America was completely caught in the clutches of European Imperialism.