During the Golden Age of Piracy (and well into
the 19th Century) A Piece of Eight was a Spanish or Spanish
American coin roughly that was roughly equivalent to today's
dollar coin. However, unlike today's American dollar which
is worth 100 pennies, the Piece of Eight was worth, you
guessed it, eight of Spain's small common demonination,
the Reale (sometimes spelled "real").
As such the Piece of Eight
was clearly marked with the number "8". It may
sound strange to some people to have 1/8 pieces but at
one time the U.S. Dollar also was divided into eight pieces
or bits. Remember the nursery rhyme "two bits, four
bits, six bits, a dollar"?
Today, we would call it an
"Eight Real Piece or Coin" similar to a "$20
Gold Piece" or "Ten Mark Piece" Just about
any reale might be refered incorrectly as a "Piece
of Eight" but all where clearly minted as 1, 2, 4,
and 8 reale pieces. Sometimes, the coins would be cut
up or cut in half, so if you cut an 8 reale coin in half
the two halves would each be worth four reales. Becuase
the coins were made of pure silver, cutting them into
pieces did little to decrease their value.