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The history of rugs is quite amazing. The weaving of rugs and carpets dates back to at least 500 BC. Rugs are made by weaving, at least this is how they started making rugs. Weaving is nothing new, our ancestors have been doing it for thousands of years. The first weaving that was done was to make baskets. They made baskets out of anything that was pliable, leaves, grass, twigs and whatever materials could be found at the time.