The price of silver had risen globally to such an extent that the intrinsic value of silver in British silver coins was actually worth more than its face value, resulting in the lower denominations being melted down, creating a shortage of silver coins in circulation. With these lower denomination silver coins becoming scarce, there needed to be a replacement to avoid an economic catastrophe

The Quarter Guinea was the brainchild of the great Sir Isaac Newton. In 1699 the post of Master of the Royal Mint fell vacant by the death of Thomas Neale. Though technically less senior than that of Warden, it was a more lucrative post because the Master acted as a contractor to the Crown and profited from the rates at which he put the work out to sub-contractors. The Mastership was offered to Newton and he took up its duties with effect from Christmas Day 1699. Surviving the political upheavals of those troubled times, he remained as Master until his death in March 1727.

The abbreviated Latin legends translate as on the obverse "George the Third by the Grace of God," and on the reverse as "King of Great Britain, France and Ireland, Defender of the Faith, Duke of Brunswick and Luneberg, High Treasurer and Elector of the Holy Roman Empire."

The calendar year output of gold in the year 1762 totalled £532,665, mostly boosted by the capture of gold and silver bullion from the Spanish treasure ship The Hermione.