The events unfolded on January 24, 1848, at the South Fork of the American River, close to present-day Coloma, California. John Sutter had enlisted several individuals to construct a sawmill in the vicinity, with James Marshall being one of the workers. It was on that significant day that Marshall spotted small specks of gold in the water flowing from the mill. After gathering some of the gold specks, he shared his discovery with Sutter, who made Marshall promise to keep it a secret. Despite the agreement, the news spread, possibly due to others also noticing the gold in the mill water. However, the story quickly gained popularity, with a publisher named Samuel Brannan walking the streets of San Francisco holding a jar of gold. The New York Herald was the first major East Coast newspaper to report Marshall’s discovery on August 19. President James K. Polk informed the nation about the gold find in a speech to Congress on December 5. Soon after, the rush began, with ’49ers, as they were known (after the year they set out, 1849), flocking to California in the thousands. In 1849, the number of gold-seeking migrants reached 80,000. While most were Americans in 1849, the following years saw gold-seekers arriving from all corners of the globe. By 1856, over 300,000 individuals had pursued their gold dreams in the California gold fields. Initially, prospectors could easily find gold nuggets by sifting through the top layers of dirt or in streams and riverbeds using methods like panning. However, as the gold supply decreased and the demand for gold rose, prospectors began using more advanced techniques. 

Development of California

The influx of ’49ers and other prospectors who migrated to California in pursuit of their dreams discovered a fondness for the region that led them to settle down. San Francisco’s population skyrocketed from 200 in 1846 to 36,000 in 1852. Similar growth was witnessed in other cities and towns across California. Consequently, California achieved statehood in 1850, with its infrastructure rapidly expanding: Schools, churches, roads, and businesses emerged from previously barren land, as individuals capitalized on the opportunity to provide goods and services to prospectors. Supply stores, warehouses, taverns, and hotels sprang up in the vicinity of known gold-rich areas, transforming the landscape.