During the Gold Rush there were very few who struck it rich by finding gold, although some got lucky. Most people did not get rich from mining. Most miners only found about $10-$15 worth of gold dust a day.
Most people who got rich were entrepreneurs. The word entrepreneurs mean people who take advantage of business opportunities. These people made money from selling things or making new businesses. During the gold rush, entrepreneurs sold items like mining tools and they made a lot more money than the miners. The entrepreneurs were being smart about the gold rush. Most entrepreneurs sold items that people needed on a daily basis. Also, they were able to make a lot of money from this because they raised the prices much higher than they could any other place in the world. They could raise the prices because the miners needed these goods and there were not a lot of stores in California to sell them. This is called supply and demand. |
Here is a Chart of the Costs for Goods
During the Gold Rush and the Equivalent
Cost Today
During the Gold Rush and the Equivalent
Cost Today
One example of an entrepreneur is Levi Strauss. He knew that miners needed tough work pants that wouldn't fall apart easily. He made denim pants with rivets that did exactly that. Levi created the jeans we wear today! Levi started to sell them and made a fortune. His company is still in San Francisco today and also all over the world. Another example is Sam Brannan. When Sam Brannan heard about gold he ran into the streets of San Francisco yelling, “There’s gold in California!” He started a business where he sold mining tools. In nine weeks he made $36,000! Two other people are William Fargo and Henry Wells. They were entrepreneurial bankers. William and Henry moved west and got an office in San Francisco and their business soon grew to be one of the most popular banks in the United States. George McKnight was one of the few lucky people who struck it rich! He discovered gold at gold hill near Grass Valley. Soon a lot of the miners rushed to the hills to strike it rich!