On January 24, 1848, James Marshall made a find that drastically altered California’s future.

While working in a creek close to Coloma, a small village nestled in the Sierra Nevada foothills, the carpenter noticed shiny specks that glimmered in the sunlight: tiny gold nuggets.

“I was certain it was gold, and it made my heart race,” Marshall later recounted.

Rumors of this newfound wealth quickly spread throughout the United States, triggering a massive influx of migrants to California that revitalized the economy, transformed the landscape, and changed the cultural fabric of the state.

Fast forward 177 years, and California still stands at the forefront of gold production and discovery in the U.S. The pioneering spirit of the original forty-niners endures among those who continue to search for treasures buried in California’s earth.

When did the gold rush begin?

When news of the gold first reached San Francisco, located 130 miles to the south, few believed it initially. It wasn’t until entrepreneur Sam Brannan strolled through the streets showcasing a jar of gold dust that people took notice.

By the spring of 1848, San Francisco had turned into a ghost town as men abandoned their businesses to pursue mining opportunities, with many others throughout California quickly following suit.

At the time of Marshall’s discovery, the United States and Mexico were engaged in a two-year conflict, and California was still under Mexican jurisdiction. Importantly, neither side was aware of the gold find when they signed a treaty on February 2, 1848, ceding control of California to the U.S.

It wasn’t until the summer of that same year that the East Coast heard about the discovery. The real rush began after former President James K. Polk addressed Congress in December 1848, speaking of “accounts of the abundance of gold.”

The non-Indigenous population of California skyrocketed from around 14,000 to nearly 100,000 by the close of 1849, and it surged past 250,000 by 1852. These newcomers were called “forty-niners” after the year they arrived.

Mining sites became melting pots, where farmers from Oregon and businesspeople from New York mingled with miners from Mexico, Chile, Hawaii, and China.

Makeshift towns sprouted around the Sacramento River, flourishing with supply stores, saloons, gambling halls, and laundries.

Yes, gold is still found in ‘those hills’

Nearly 200 years later, California still records the most new gold discoveries of any state in the country. A 2023 analysis by SD Bullion of U.S. Geological Survey data revealed 10,373 gold-bearing sites in the state.

According to Ed Allen, a historian at the Marshall Gold Discovery State Historic Park, only about 10% to 15% of California’s gold has been discovered so far.

Terry Prebalick, a seasoned gold seeker, believes that as little as 1% of the available gold has been recovered due to its abundance in the region.

In 1979, after finishing his military service, Prebalick relocated from Minnesota to Sonora, California, to open a print shop. One day during lunch, he witnessed an elderly man retrieve a gold nugget weighing 3 ½ ounces from a local creek.

This sparked a powerful desire in Prebalick to search for gold, which he described as “almost intoxicating.”

“By that weekend, I had a pan and a shovel. I was certain I would strike it rich,” he recalled.

While he didn’t achieve his initial dreams of wealth, Prebalick has been able to support himself by selling gold he collects. One lucky find gave him 127 ounces, which sold for around $2,600 per ounce. However, there are times when he finds nothing at all.

“Some months, you live on fried egg sandwiches, while other months allow for steak and hamburgers,” he explained.

Currently, his son, Nick Prebalick, runs a tour company called California Gold Panning, where visitors can try their hand at mining. This venture keeps the family’s passion for gold hunting alive. During peak summer, the tours can welcome up to 10 groups daily, each with about 30 participants — generally tech workers from the Bay Area and curious tourists.

While most gold remains buried, large floods, like those that occurred in 2022 and 2023, can shift gold deposits down from mountain tops, according to Nick, often referred to as “Nugget Nick.”

Despite technological advancements, Terry notes that gold prospecting methods have remained largely unchanged over the centuries.

“The only major difference is that we now use plastic and aluminum for sluice boxes, rather than wooden ones or even a pair of Levi jeans,” he quips, referencing the tools used for gold searching.

“And the businesses selling the equipment continue to earn the most,” he adds with a laugh.

The darker side of the gold rush

Like many quests for quick riches, the California gold rush had devastating consequences.

During its peak, California’s indigenous population fell from about 150,000 to around 31,000, as reported by the International Indian Treaty Council.

In 1860, the California legislature enacted the Act for the Government and Protection of Indians, which legalized the forced indentured servitude of Native Americans, leading to the enslavement of over 25,000 individuals.

Many African Americans also found opportunities in the gold rush, establishing businesses and mining. However, despite California being a free state, numerous regions turned a blind eye to slavery. Approximately 200 to 300 enslaved Black Americans were transported to the West Coast to toil in the mines.

Gold miners severely disrupted California’s environment as well. They constructed dams to facilitate mining, altering river courses, and hydraulic mining methods dislodged sediment into rivers, compromising agriculture and public health. Moreover, toxic mercury used in gold processing polluted water supplies.

In 1882, California took a significant step by enacting the nation’s first environmental law, which prohibited the disposal of mining waste into rivers.

Lasting impacts of the gold rush

The effects of the gold rush continue to be felt across the United States today. Some notable examples include:

◾ Chinatown: Legislative measures made it increasingly difficult for non-U.S. citizens to mine for gold, prompting many Chinese immigrants to migrate to San Francisco, where they established America’s first “Chinatown.”

◾ Levi Jeans: During the gold rush, Levi Strauss moved from New York to San Francisco to launch a dry goods business. He developed a method for creating durable pants for miners, leading to the creation of blue jeans as we know them.

◾ Transcontinental Railroad: As development prospered along the West Coast, there was a pressing need for improved coast-to-coast travel. In response, Congress passed laws to expand U.S. railroad networks, resulting in the start of the Transcontinental Railroad project in 1863.