Gold Rush!

James Wilson Marshall could hardly believe his eyes. As the young construction foreman examined a channel of water behind a lumber mill he was building in Coloma, California, he spotted what looked like a glistening fleck of gold.

Not far from there, along the American River, he soon spotted another pebble sparkling in the sun, then another.

“I reached my hand down and picked it up,” Marshall later recalled. “It made my heart thump, for I was certain it was gold.”

To be absolutely sure, he tested one of the nuggets by hammering it, changing its shape but not breaking it—a peculiar property of gold.

Marshall’s discovery of gold at Sutter’s Mill 175 years ago, on January 24, 1848, fundamentally shaped the young nation. It set off the largest mass migration in U.S. history up to that point—an exodus to the American West that bred new fortunes, fueled the national economy, and helped foster an entrepreneurial spirit still present today.

James Wilson Marshall was building a lumber mill in Coloma, California. When he scanned the channel of water behind it, he could hardly believe his eyes. He spotted what looked like a shiny piece of gold.

Not far from there, he soon spotted another pebble sparkling in the sun. As he continued looking along the American River, he saw more of them.

“I reached my hand down and picked it up,” Marshall later recalled. “It made my heart thump, for I was certain it was gold.”

To be sure, he tested one of the nuggets by hitting it with a hammer. When he banged it, its shape changed but it didn’t break. That’s how he knew it was really gold.

Marshall had found gold at Sutter’s Mill 175 years ago, on January 24, 1848. His discovery shaped the young nation in a vital way. It set off an exodus to the American West, which was the largest mass migration in U.S. history up to that point. The shift bred new fortunes and fueled the national economy. It also helped foster a business-minded spirit still present today.

“The discovery of gold in California showed what the American dream is all about,” says H.W. Brands, author of The Age of Gold: The California Gold Rush and the New American Dream. “It was that dream of material success and of economic opportunity—of how to just make a better life.”

When Marshall made his momentous find, the U.S. looked quite different than it does today. Mexico still owned most of the American West, but many Americans believed in “Manifest Destiny,” the idea that the U.S. was destined by God to expand and spread capitalism across the continent.

“The discovery of gold in California showed what the American dream is all about,” says H.W. Brands, author of The Age of Gold: The California Gold Rush and the New American Dream. “It was that dream of material success and of economic opportunity—of how to just make a better life.”

When Marshall made his historic find, the U.S. looked quite different than it does today. Mexico still owned most of the American West. At the time, the idea of “Manifest Destiny” was gaining traction among Americans. It was the belief that God chose the U.S. to expand and spread capitalism across North America.

Just days after Marshall picked up those first nuggets, the Mexican-American War ended with the Treaty of Guadalupe Hidalgo, as Mexico ceded more than half of its territory, including present-day California, to the United States. But neither Mexican nor American leaders knew that gold had been part of the bargain.

John Sutter, the businessman who owned the mill, wanted to keep news of the gold under wraps in hopes of maintaining control of his property. But on May 12, a storekeeper paraded around the streets of San Francisco with a vial of gold, shouting news of the discovery to everyone. The rush was on.

Just days after Marshall picked up those first nuggets, the Mexican-American War ended with the Treaty of Guadalupe Hidalgo. Under the treaty, Mexico gave more than half of its territory to the United States. That land included present-day California. But neither Mexican nor American leaders knew that gold had been part of the deal.

John Sutter, a businessman, owned the mill. He wanted to keep news of the gold under wraps in hopes of keeping control of his property. But on May 12, a storekeeper went around San Francisco with a bottle of gold and spread the news to everyone. The rush was on.

Throughout the course of the Gold Rush, which lasted until about 1855, an estimated 300,000 people migrated to California in hopes of striking it rich. They were nicknamed forty-niners for the year in which they began arriving there in droves: 1849.

Gold fever attracted immigrants from all across the U.S.—and also Latin America, China, Europe, and Australia. Prospectors arrived by covered wagon, horseback, and ship.

“People looked on the possibility of finding gold in California as a way of jump-starting stalled careers and compressing a decade’s worth of work into maybe two good seasons in the gold mines,” Brands says.

Almost overnight, San Francisco transformed from a small settlement of 1,000 people into a boomtown of 25,000 by the end of 1849. Many forty-niners borrowed money, sold their farms, or used their life savings to get the money for the voyage.

“I have left those that I love . . . behind and risked everything and endured many hardships to get here,” gold miner S. Shufelt wrote in a 1850 letter to his cousin. “I want to make enough to live easier and do some good with, before I return.”

Miners set up camps along the river, working sunrise to sundown using pans to sift for gold. They endured difficult conditions at the camps. Disease and malnutrition were common, and competition for gold and other resources bred conflict and suspicion, with the men often forming alliances along racial lines.

“There was a sense of a kind of zero-sum game,” says Malcolm Rohrbough, author of Days of Gold. “There was only so much gold in California, and you had better be getting your share and you had better be keeping an eye on the other people who were getting their share.”

The Gold Rush lasted until about 1855. In that time, an estimated 300,000 people migrated to California in hopes of striking it rich. They were nicknamed forty-niners. This name was a nod to the year in which they began arriving there in droves: 1849.

Gold fever attracted immigrants from all across the U.S. People also came from Latin America, China, Europe, and Australia. They arrived by covered wagon, horseback, and ship.

“People looked on the possibility of finding gold in California as a way of jump-starting stalled careers and compressing a decade’s worth of work into maybe two good seasons in the gold mines,” Brands says.

Things took off almost overnight. By the end of 1849, San Francisco transformed from a small settlement of 1,000 people into a boomtown of 25,000. Many forty-niners borrowed money, sold their farms, or used their life savings to get the money to move.

“I have left those that I love . . . behind and risked everything and endured many hardships to get here,” gold miner S. Shufelt wrote in an 1850 letter to his cousin. “I want to make enough to live easier and do some good with, before I return.”

Miners set up camps along the river, working sunrise to sundown using pans to sift for gold. They endured harsh conditions at the camps. Disease and starvation were common. The competition for gold and other resources led to conflict and suspicion. And the men there often formed groups along racial lines.

“There was a sense of a kind of zero-sum game,” says Malcolm Rohrbough, author of Days of Gold. “There was only so much gold in California, and you had better be getting your share and you had better be keeping an eye on the other people who were getting their share.”

By 1850, more than 25 percent of California’s population had been born outside the U.S., and by 1851, 25,000 immigrants from China were living there. The sudden boom in California’s population accelerated its path to statehood. California established a state constitution and government in 1849, and Congress voted to make it a state in 1850.

But as a widespread anti-immigrant sentiment swept California, the state set new taxes and laws targeting immigrants, such as a monthly $20 foreign miners tax.

The Gold Rush peaked in 1852, when miners pulled some $81 million in gold from the ground, the equivalent of about $3.1 billion today. Some of the most lasting fortunes were made not by the miners themselves but by those providing goods and services to the mining industry. One such businessman was Leland Stanford. Profits from his general store led to investments in the Central Pacific Railroad and to the governorship of California, and he later founded Stanford University.

By 1850, more than 25 percent of California’s population had been born outside the U.S. By 1851, 25,000 immigrants from China were living there. The sudden boom in California’s population sped up its path to statehood. California set up a state constitution and government in 1849, and Congress voted to make it a state in 1850.

Bias against immigrants began to grow across California. As this sentiment spread, the state set new taxes and laws targeting immigrants. Among them was a monthly $20 foreign miners tax.

The Gold Rush peaked in 1852. That year, miners pulled some $81 million in gold from the ground. That would be equal to about $3.1 billion today. Some of the most lasting fortunes weren’t made by the miners themselves but by those providing goods and services to the mining industry. One such businessman was Leland Stanford. Profits from his general store led to investments in the Central Pacific Railroad and to becoming governor of California. He later founded Stanford University.

But the growth of California’s population and economy came at a price for some. As goldfields became mined out, prospectors began working for big companies using heavy machinery—practices that ruined much of the region’s land.

The state’s Indigenous population also suffered greatly. The arrival of tens of thousands of forty-niners decimated the landscape and food supply, with miners raiding camps and ranches in search of food and resources.

Even after it ended, the Gold Rush continued to shape America. Those who arrived looking for gold, particularly Chinese immigrants, helped build the railroads, forging a route connecting the country from coast to coast and embedding themselves in the fabric of the nation.

But the growth of California’s population and economy came at a price for some. As goldfields became mined out, people began working for big companies using heavy machinery. These practices ruined much of the region’s land.

The state’s Indigenous population also suffered greatly. The arrival of tens of thousands of forty-niners harmed the landscape. Miners also drained the food supply as they raided camps and ranches in search of food and resources.

Even after it ended, the Gold Rush continued to shape America. Those who arrived looking for gold, particularly Chinese immigrants, helped build the railroads. They helped create a route that connected the country from coast to coast. In doing so, they embedded themselves in the fabric of the nation.

Today, California is nicknamed the Golden State. It’s the second most racially and ethnically diverse state in the U.S., after Hawaii, according to 2021 data from the U.S. Census Bureau. California is also the home of Silicon Valley, where tech entrepreneurs from all over are still innovating in hopes of striking it rich.

“It isn’t simply a coincidence that Silicon Valley is in California and not someplace else,” Brands says. “California had that big history of taking risks . . . and then finally cashing in big.”

Today, California is nicknamed the Golden State. It’s the second most racially and ethnically diverse state in the U.S., after Hawaii, according
to 2021 data from the U.S. Census Bureau. California is also the home of Silicon Valley, where tech entrepreneurs from all over are still innovating in hopes of striking it rich.

“It isn’t simply a coincidence that Silicon Valley is in California and not someplace else,” Brands says. “California had that big history of taking risks . . . and then finally cashing in big.”

With reporting by Robert K. Elder.

With reporting by Robert K. Elder.