The California Gold

Ever wonder how much Gold came out of California during the Gold Rush?

Hunt's Merchants' Magazine and Commercial Review of 1856 estimated the following production numbers based on shipments of gold to New York and deposits to the US Mint for coinage. These estimates are most likely very low. They do not include any gold that was being held and transported personally by miners and merchants.

Gold was valued at only $18.75/oz during this period. The price now is about 74 times that amount at close to $1400 per ounce.

 

Year of Production
Value in Period $
Number of Ounces
Value in 2010 $
1849 to 1850
$64,000,000
3,413,333 oz
4,736,000,000
1851
$34,500,000
1,840,000 oz
2,553,000,000
1852
$45,500,000
2,426,666 oz
3,367,000,000
1853
$56,500,000
3,013,333 oz
4,181,000,000
1854
$57,500,000
3,066,666 oz
4,255,000,000
1855
$41,700,000
2,224,000 oz
3,085,800,000
1856
$40,300,000
2,149,333 oz
2,982,200,000
       
8 years

18,133,331

About 18 Million Ounces

$25,160,000,000

About 25 Billion $$
       

 

This chart covers only eight years. But miners were successful in the California fields for many years after. The same documents estimate that almost 1 million men headed west during these years in search of their fortune.

Most of this gold traveled back east to New York and onward to Europe. Shipments from San Francisco were made twice a month. The gold traveled via steamship to Panama, was transported overland, and then shipped from Aspinwall, Panama via Havana, Cuba to New York City. The steamships were under contract with the US government to transport the US Mail, and carried from 400 to 700 passengers per voyage.

The Shipment schedule for 1856 shows 33 shipments from San Francisco to New York bearing on average $1.2 Million dollars or about 65,000 ounces of Gold per voyage.

The journey across the Isthmus of Panama required a short 48 miles of travel from the Pacific to the Atlantic. In 1855 the Panama Railway was completed. Up until this point, passage was made at least part of the way by mule and boat. Railway Tariffs were charged based on what types of goods were being transported. Gold commanded a tariff of 1/4 of 1%. Passenger baggage was charged at 10 cents per pound. Its not surprising the the Panama Railway was able to report a 24% dividend to its stockholders during these years.

Passage from San Francisco to New York was very expensive. In 1856 the rate for even second class passage was $231 or about 12 ounces of gold. Most miners that went west for the California Gold Rush, came home broke, if they came home at all.

Think about it....$25 billion in Gold, and only a few miners come home with a fortune.