INTRODUCTION
Roughly 45 million troy ounces of gold have been found in Colorado … so far. Slow to start, the Colorado “Pikes Peak” Gold Rush officially began in 1859 after discoveries near Idaho Springs and Central City. As in California, assaying was needed, along with shipping to the Philadelphia Mint. The solution was private assaying and, eventually, the railroad. Privately struck coins were accepted as long as manufacturers maintained consistent purity and weight. Clark, Gruber & Co. pieces were preferred locally even over regular federal coinage. The Territory of Colorado was the last region to ban private coin production in 1862. After 150 years of mining history, the only significant Colorado gold mine still in operation is the Cripple Creek & Victor Gold Mine, where modern mining techniques produce about 325,000 ounces per year.
Did You Know?
- Precious metals are measured in troy ounces. One troy ounce equals 1.097 standard ounces. Troyes, a medieval French trade town, gave its name to the modern weight, standardized as 480 grains of barley.
- During the Gold Rush, pure gold was $20.67 per troy ounce in California. However, gold dust was valued at $17 per troy ounce, due to its impurities. Some buyers gained, others lost, depending on the purity of the dust.
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AUDIO COMPANIONS
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Clark, Gruber & Co. – the most famous of Colorado’s private minters – were brokers, bankers, and assayers. Founded in Kansas, the company moved to Denver with the Colorado Gold Rush of 1859. Most of its business was in raw gold (dust, nuggets and ore) brought in by miners. They produced four denominations of coinage ($2.50, $5, $10 and $20) dated 1860 and 1861, though production continued into 1862. The company headquarters was sold to the U.S. Treasury in 1863 and became a federal assay office. In 1906 it was converted into a US branch mint. Less successful assayers tried their luck, including Dr. John Parsons, a medical doctor from Illinois. An assayer, he struck gold coins in the summer of 1861 using a press mounted to a wagon located west of South Park. John J. Conway & Company, jewelers and bankers, struck $2.50, $5, and $10 pieces that same summer. Inconsistent weights and fineness, as well as designs reminiscent of tokens, led to public distrust. They stopped production after just two months.
