Most of us have heard about the California gold rush or perhaps the San Francisco 49ers football team named after the gold rush era. Have you really thought about what that meant?  There is an interesting book called The Age of Gold by H.W. Brands published by Doubleday, NY, 2002 that does. From 1848 to 1869 is the heart of the gold age of California when thousands of people rushed in to find their riches. After 1869, gold mining becomes more industrial or harder for a few to pan for riches. It also meant California changed from a frontier to another place to find opportunity for a better life with a difference. The people that came wanted instant wealth and by the beginning of the Civil War more than  $600 million in gold went from California to New York which meant many did find their dream. However this was different from the previous 10 generations – the puritans who were content to accumulate their modest fortunes a little at a time, year by year by year, The new American dream was different  – success could come overnight and signified not virtue but luck. In the goldfields, life was about gambling, winning and losing and winning until the energy ran out. Where failure was common, the previous generations virtues lost its stigma – the entrepreneurial culture was upon the state and the country

There of course was another side of speculation, corruption, and consolidation. The lines between government and business were blurred as evidenced by Leland Stanford who was one of the financial backers of the railway as well as being Governor. It helped but things were different back then. The mining of gold in California lead to the finding gold in other places such as Nevada, Montana, South Africa, South Dakota and Alaska and around the world.

Linking to dividend paying stocks, the discovery of gold in California brought people towards an opportunity to be wealthy very quickly or at least make more than their foreseeable future earnings. There were great challenges just to make it to the fields and then find somewhere to dig or pan – they are great stories. In all boom times there is easy money to be made and at some point more money to be made giving services. Eventually things begin to balance out as consolidations happen and then the best mines run for a few years where dividends can be collected. There are always many ways to invest, look towards the one which makes you the most comfortable and you may not be the wealthiest but you will have more money and happiness along the way.

There are more questions than answers, till the next time – to raising questions.