Gümüşhane exists because of a road. The historic route joining Trabzon to Iran and Azerbaijan leaves the Black Sea coast east of Trabzon, follows the Değirmendere valley, crosses the Zigana mountains at 2,030 metres and comes down into the Harşit valley. Gümüşhane and its district connect easily to Bayburt along it, and from there the Kop pass at 2,400 metres carries the road over the second range of the eastern Black Sea mountains to Erzurum. Further east it follows the natural line of the Aras valley into Iran.

A second road branches here. From Gümüşhane it crosses the mountains to the south by the Sıpikor pass and links the city to Erzincan, and through Erzincan to the rest of the country.

About the district's early history, and about when the city was founded, there is no certain information. What is known is that the town moved twice before settling where it now stands.