Another ‘Gold Rush’ is upon us

On January 24, 1848, a carpenter working at a mill in northern California made a discovery that would change the course of American history—two gold nuggets. Within a year, tens of thousands of people (popularly known as ‘49ers) were traveling to the land around John Sutter’s mill in hopes of striking it rich. Some failed, some were successful, but nearly all of the prospectors faced severe hardships during their fortune-hunting days.

I wanted to focus to two main facts about the history of the Gold Rush and compare it to Today. Today, Information is Wealth. A vehicle for getting the information is the internet. Yet, the internet is infinite. Let’s keep this in mind. So let’s focus on these TWO FACTS:

• Prospecting for gold was a very costly enterprise.
• Most of the men who flocked to northern California arrived with little more than the clothes on their backs. Once there, they needed to buy food, goods and supplies, which San Francisco’s merchants were all too willing to provide—for a cost. Stuck in a remote region, far from home, many prospectors coughed up most of their hard-earned money for the most basic supplies. At the height of the boom in 1849, prospectors could expect prices sure to cause sticker shock: A single egg could cost the equivalent of $25 in today’s money, coffee went for more than $100 per pound and replacing a pair of worn out boots could set you back more than $2,500.
• More fortunes were made by merchants than by miners.
• As the boom continued, more and more men got out of the gold-hunting business and began to open businesses catering to newly arrived prospectors. In fact, some of America’s greatest industrialists got their start in the Gold Rush. Phillp Armour, who would later found a meatpacking empire in Chicago, made a fortune operating the sluices that controlled the flow of water into the rivers being mined. Before John Studebaker built one of America’s great automobile fortunes, he manufactured wheelbarrows for Gold Rush miners. And two entrepreneurial bankers named Henry Wells and William Fargo moved west to open an office in San Francisco, an enterprise that soon grew to become one of America’s premier banking institutions. One of the biggest mercantile success stories was that of Levi Strauss. A German-born tailor, Strauss arrived in San Francisco in 1850 with plans to open a store selling canvas tarps and wagon coverings to the miners. After hearing that sturdy work pants—ones that could withstand the punishing 16-hour days regularly put in by miners—were more in demand, he shifted gears, opening a store in downtown San Francisco that would eventually become a manufacturing empire, producing Levi’s denim jeans.

Now, when I look at these historical facts and compare them to today, I see a lot of similar actions. Although, families today are not rushing to California to find Gold. They are running to the internet to find information on how to create wealth. They go to Google, and write “Get Rich Fast”, “Work From Home”, “How to make money”. What today’s ‘prospectors’ are finding are home affiliate opportunities. These are great. If done correctly and with consistent action, they will “Find Gold.”

However, statistics show almost 90% of people quit or make less than $500 a month in all these great vehicles. This is not because they don’t work. “Most people just give up before they find Gold.” So, just like in the days of the ‘Gold Rush’, the fortunes are still made by the merchants more than the miners. 

An example today I want to share is with energy. Instead of being the "Miner" or the producer of energy, I have learned to become the "Merchant" due to deregulation. That in itself is a great story. Here it below. It started over a turkey sandwich.

If you are looking learn how to become a Merchant instead of an Miner, Click HERE