Once gold was found....

[dreameffects]

Hi,
I am trying to find out what miners would do with the gold they found? Would they take it to a bank in town? Would they spend it at the bar or on women? Did banks buy the gold from the miners or was there a special office you would take the gold to?

Thank you

[St. George]

Yes...

Scouts Out!

[Scattered Thumbs]

Yes...

Scouts Out!

[Coffinmaker]

EXACTLY   

[Professor Marvel]

Gold dust and nuggets were often considered " currency" by optimistic merchants and naiive bankers.

Once they got burned by a poor grade of "ore" or by a flimflam man, they either got themselves an education in "assaying" and a kit, or got an assayer to come to town.

If one was intelligent and willing to educate oneself it is not difficult to get the equipment needed. Of course "your" evaluation of the dust, nugget, or whatever may not match what an official assayer might come up with. Then when you go to sell the bag of dust you have accumulated, it may actually be valued at more, or less, than what you paid. Not to mention the market fluctuation.... Yes even then ... If I recall correctly there were several silver "book and busts" ....

Look up assayer's office for details, or visit the websites for the gold mining towns of. Colorado

Yhs Prof marvel

[Tsalagidave]

Just to expand on my answer from the other thread, a miner could spend his dust and nuggets at an establishment but it came at a much lower exchange than that of an assay office (about $8-10 paying by the pinch versus about $15-15.75 at an Assay office. Remember, shopkeepers and bartenders would take the nuggets and dust from their tills to the assay office so giving the same rate of an assay office was not profitable.

Your exchange was paid out either in coin or bullion from the assayer.  Since gold is so heavy, established banking firms such as Thos. G. Wells, Adams Express, Henry M. Nagle, Burgoyne & Co., etc.were relatively safe and reliable to deposit with. If you wanted to deposit your gold, it was more safe than a Mexican Bank (burying it).  If you wanted to take your funds back to the states (ex. transfer $1000 in specie back to Boston) You would go into the express office, deposit your gold and 3 checks would be generated. The first belonged to the deposit branch, The second would be your receipt and the 3rd would travel to your consignee branch in Boston.  It was a lot more secure than carrying it all home yourself. Many first hand accounts that exist from the California Gold Rush testified to this. Once you arrived in the Boston branch, your receipt and penmanship would be verified with that of their copy and the gold was yours.

I am actually writing a book on the topic with hopes of it's completion by this time next year. Although I am glad to go over content for the benefit  of the discussion, I would request that you not reproduce this content in your own work. I am including the following content with sources cited.

Thanks

-Dave

[Professor Marvel]

Thanks very much my Dear Dave!

I was hoping you might chime in, and you have covered the subject far better than I!
Please telegraph details of your book, when available, I will certainty want that as well as your others!

Yhs prof marvel

[Tsalagidave]

Thanks for the kind words Professor; that goes far with me.  I definitely will keep you updated as I go.  Here is a sneak peek at the cover art. I am already working out all the minutiae with copyrights and trademarks at the moment.

[Professor Marvel]

Well laid out and typical to the era, Dave. The devil is in the details!
BTW, has anyone ever harassed your illustrator,
The famous Deaf Smith?

Yhs prof mvl

[Tsalagidave]

Thanks Prof. The funny part is that  I had so much tunnel vision putting this together, I did not think about the reference to Erastus Smith.  I can't stop seeing it now.  Don is a good friend of nearly 30 years and a professional illustrator but think I'll have to tell him about "Deaf Smith".

Nice spot.

-Dave

[Trailrider]

Of course, the folks that made the most money during the California gold rush, very often weren't the miners themselves. To really develop a "gold strike" a miner needed much more than a pan or even a "rocker".  Mining equipment was what was really needed to develop a strike. (Later, dredges were used in the Sacramento and American Rivers). Miners needed clothing, tents, shovels, shoes, firearms (to protect against claim jumpers), and, of course, food other than game! Levi Strauss made his fortune by turning serge de nimes (denim) into pants for miners. That stuff had to be transported by ship "around the Horn", which added to the cost.