The History of Gold Mining in North Carolina
Gold mining in North Carolina began in 1799 with the discovery of a 17-pound gold nugget at Reed Gold Mine in Cabarrus County, marking the start of the first documented gold rush in the United States.
According to Joshua D. Glawson of Money Metals, North Carolina led gold production in the early 19th century, significantly boosting the national economy until the California Gold Rush of 1848.
Employing both placer and lode mining methods, the industry spurred technological advancements and attracted investments, benefiting local infrastructure and industries such as textiles and tobacco.
Today, North Carolina’s rich gold mining heritage is evident through historical sites and ongoing explorations, highlighting its crucial role in America’s gold mining history.
Facts About Gold Mining in North Carolina
According to precious metals researcher and writer Joshua D. Glawson of Money Metals, there are many fun and unique facts about North Carolina’s history with gold and gold mining.
Such thought-provoking examples include the first gold rush in North America, the first dollar gold coin, and the physical moving of a former US Mint to be made into an art museum the year owning gold was made illegal — the Charlotte Mint Museum Randolph.
The following is a list of 6 facts about gold mining in North Carolina:
- First Gold Dollar: Christopher Bechtler, a jeweler and metallurgist, minted the first gold dollar in the United States in 1831, long before the U.S. Mint produced its own version. His privately minted coins were widely accepted and used in the region.
- Charlotte Mint: The discovery of significant gold deposits in North Carolina led to the establishment of the Charlotte Mint in 1837. The mint produced over $5 million in gold coins until it ceased operations during the Civil War.
- Gold Mining Heritage: The Reed Gold Mine is now a state historic site and open to the public. Visitors can tour the underground tunnels and even try their hand at gold panning.
- Innovative Techniques: North Carolina was a pioneer in the development of new mining techniques, including hydraulic mining and the use of steam engines to pump water out of deep mines.
- International Influence: The gold rush attracted miners and investors from around the world, including Europe and South America. Cornish miners from England were particularly influential, bringing their expertise in lode mining to North Carolina.
- Hidden Wealth: Many of North Carolina’s old gold mines are still rich in gold. Modern exploration techniques, such as ground-penetrating radar, are uncovering new deposits in historic mining areas.
Comprehensive List of Known Gold Mines in North Carolina History
North Carolina, historically significant for its rich deposits of gold, has a storied legacy in the annals of American mining. The state’s gold rush, which began in the early 19th century, predates the more famous California Gold Rush by several decades.
This section provides a comprehensive list of known gold mines in North Carolina, chronicling their discovery, development, and impact on the state’s economy and heritage.
From the Reed Gold Mine, where the first documented gold find of significance in the United States occurred in 1799, to numerous lesser-known but equally fascinating sites, this compilation serves as a valuable resource for historians, enthusiasts, and researchers delving into the vibrant history of gold mining in the Tar Heel State.
North Carolina Gold Mines
The following is a spreadsheet of gold mines in North Carolina that have or are currently mining for gold. The spreadsheet includes the name of the mine, the years of operation, and the respective region of North Carolina:
Piedmont Region
The Piedmont region of North Carolina, situated between the Coastal Plain and the Appalachian Mountains, features rolling hills, diverse forests, and major rivers like the Yadkin and Catawba. It has a humid subtropical climate with four distinct seasons.
Historically a hub for textiles and furniture manufacturing, the Piedmont now boasts a diversified economy with significant banking in Charlotte and the first Digital Economic Zone (The Catawba Digitial Economic Zone; DEZ, located in the sovereign Catawba Indian Nation), technology in Raleigh-Durham, and education sectors — such as Duke University, University of North Carolina at Chapel Hill, Elon University, and Wake Forest University.
Major cities include Charlotte and Raleigh, the latter part of the Research Triangle known for its universities and innovation (also known as Research Triangle Park or RTP).
The region offers vibrant arts, numerous historical sites, and abundant outdoor recreational opportunities, making it a dynamic blend of urban development and rich cultural and natural heritage.
According to Dr. Michael S. Smith, professor emeritus of Earth and Ocean Science at the University at Wilmington, North Carolina, there have been a minimum of 11 gold mines in North Carolina. Some of Dr. Smith’s research on the history of gold mines in North Carolina can be found here.
These are the 11 gold mines in the following list:
- Reed Gold Mine (Cabarrus County): 1799–1912 (plausibly 1803–1912)
- Gold Hill Mine (Rowan County): 1840s-1915
- Barringer Gold Mine (Stanly County): 1820s-1910s
- Rudisill Gold Mine (Mecklenburg County): 1830s-1930s
- Howie Gold Mine (Mecklenburg County): 1840s-1930s
- Capps Hill Mine (Mecklenburg County): 1830s-1930s
- Crowell Gold Mine (Cabarrus County): 1820s-1920s
- Dunn Mine (Davidson County): 1830s-1910s
- Alexander Mine (Davidson County): 1830s-1910s
- Fentress Mine (Randolph County): 1830s-1910s
- Portis Gold Mine (Franklin County): 1830s-1930s
Western Region
The western region of North Carolina, characterized by the Appalachian Mountains including the Blue Ridge and Great Smoky Mountains, features rugged terrain with elevations up to over 6,000 feet, such as Mount Mitchell.
It has a temperate climate with cool summers and cold winters, attracting tourists for its natural beauty and outdoor activities like hiking and skiing.
The region’s economy thrives on tourism, agriculture, and a rich arts and crafts scene, particularly in Asheville. Educational institutions like Western Carolina University and Appalachian State University contribute to the area’s cultural and research landscape.
Known for its scenic landscapes, historical sites such as the largest private home in the United States — the Biltmore Estate, and vibrant cultural heritage, the western region is a dynamic and diverse part of the state.
The following are the 3 gold mines that have operated in the western region of North Carolina:
- Meadow Creek Mines (McDowell County): 1820s-1900s
- Vein and Huntsville Mountain Mines (McDowell County): 1820s-1900s
- Dunn Mine (Gaston County): 1830s-1910s
Other Notable Mines
The following 2 gold mines were also notable:
- Haile Gold Mine (Near NC border in South Carolina): Early 1800s-present
- Sink Hole Mine (Mitchell County): 1800s-1960s
Active Gold Mines in North Carolina Today
Today, at least 1 gold mine is actively mining for gold — Carolina Gold Resources Inc.
- Carolina Gold Resources Inc.: Operating in the Carolina Slate Belt, this company continues to explore and mine gold in the region, focusing on both historical sites and new prospects.
Gold Mining in North Carolina Over the Years
The graph below illustrates the historical trends in gold mining in North Carolina from 1800 to 2020, showing significant peaks during the North Carolina Gold Rush era in the mid-19th century, followed by a decline as easily accessible deposits were exhausted.
Gold production peaked around 1860, reflecting the state’s prominence in early American gold mining. The 20th century saw further declines with occasional minor revivals, but modern gold mining in the state is minimal.
For detailed historical information, refer to “Gold Mining in North Carolina: A Bicentennial History” by Richard F. Knapp and Brent D. Glass or the North Carolina Geological Survey publications. More information can be found on the North Carolina Department of Natural and Cultural Resources website.
Above is a graph depicting gold mining in North Carolina over the years, showing the quantity of gold mined (in ounces) from 1800 to 2020. The data illustrates significant peaks and declines, reflecting historical mining activity and its variations over time.
Differences Between Placer and Lode Mining
According to the Wells Historical Society and Museum, placer mining and lode mining are two distinct methods of extracting valuable minerals from the earth.
Placer mining involves the extraction of minerals from loose sediment or alluvial deposits, typically found in riverbeds, streambeds, and other areas where water has naturally concentrated heavy minerals like gold.
This method often employs techniques such as panning, sluicing, and dredging to separate the valuable minerals from the sediment.
In contrast, lode mining targets minerals embedded in solid rock, often requiring more complex and labor-intensive processes to access and extract the ore.
Lode mining typically involves underground or open-pit mining techniques to reach the veins of ore within the rock, followed by crushing and processing to extract the desired minerals.
While placer mining is generally simpler and more environmentally gentle, lode mining is necessary for accessing deeper, more substantial mineral deposits.
Placer Mining: This method involves extracting gold from loose material in riverbeds or streambeds. The gold is separated from sand, gravel, and clay using techniques like panning, sluicing, and dredging. Placer mining is often used for smaller, more scattered deposits and has a relatively lower environmental impact compared to other mining methods.
Lode Mining: Lode mining targets gold deposits embedded in solid rock. This method requires extensive tunneling, drilling, and blasting to reach the ore. Lode mining is used for larger, more concentrated deposits and typically has a higher environmental impact due to the extensive excavation and waste rock production.
Today, gold mining may be conducted using a variety of safe and effective methods, including both traditional and modern techniques.
The primary 6 methods of gold mining are as follows:
- Open-Pit Mining: This method involves removing large quantities of rock and soil to access gold deposits near the surface. Open-pit mining is widely used for large-scale gold mining operations.
- Underground Mining: When gold deposits are located deep within the earth, underground mining is used. This involves creating tunnels and shafts to reach the ore, which is then brought to the surface for processing.
- Placer Mining: This technique is still used today, particularly in areas with historical gold deposits. It involves extracting gold from riverbeds or alluvial deposits using methods like panning, sluicing, and dredging.
- Heap Leaching: In this process, low-grade ore is piled into large heaps and treated with a cyanide solution that percolates through the ore, dissolving the gold, which is then collected from the leach solution.
- Hard Rock Mining: Similar to lode mining, this involves extracting gold from solid rock formations, usually through drilling and blasting to access the ore, followed by crushing and processing to extract the gold.
- Artisanal and Small-Scale Gold Mining (ASGM): This method is used by individual miners or small groups, often in developing countries. It can involve a variety of techniques, from panning and sluicing to small-scale underground and open-pit mining.
Each method is chosen based on the location, depth, and type of gold deposit, as well as economic and environmental considerations.
Modern gold mining also involves advanced technology and equipment to improve efficiency and reduce environmental impact.
Are there Taxes on Gold in North Carolina?
Yes, According to Stefan Gleason of the Sound Money Defense League and Money Metals, in North Carolina capital gains taxes on gold and other precious metals are subject to both federal and state taxation.
Federal Capital Gains Tax:
- Short-term capital gains (held for one year or less) are taxed as ordinary income at federal rates ranging from 10% to 37%, depending on your income level.
- Long-term capital gains (held for more than one year) are generally taxed at a maximum rate of 28% for collectibles, which include gold and other precious metals.
North Carolina State Capital Gains Tax:
- North Carolina taxes capital gains as part of your overall income. The state has a flat income tax rate of 4.75% as of 2024.
Example Calculation
If you sell gold after holding it for more than one year:
- Calculate the federal long-term capital gains tax at up to 28%.
- Add the North Carolina state income tax of 4.75%.
For a short-term gain:
- Determine the federal tax rate based on your income (10% to 37%).
- Add the North Carolina state income tax of 4.75%.
** It’s advisable to consult with a tax professional for precise calculations and to ensure compliance with current tax laws.
Stefan Gleason remarked on the gold mining industry not holding onto some of their gold while they are also taxed, “Miners spend billions of dollars every year pulling precious metals out of the ground. They toil mightily for years on end to produce these stores of value — but then they turn right around and sell all their gold and silver immediately in exchange for fiat currencies.”
The evolution of North Carolina’s laws on gold and sound money demonstrates the state’s alignment with broader national monetary policies while occasionally reflecting local initiatives to return to traditional monetary standards based on precious metals — in this case, gold.
Presently, advocacy for gold and sound money principles persists in the state, driven by concerns over the long-term stability of fiat currency.
According to Jp Cortez, Executive Director of the Sound Money Defense League, North Carolina ranks 27th out of 50 states for its gold and sound money policies.
Conclusion
Gold mining has played a crucial role in North Carolina’s history, driving economic growth and technological advancements.
From the early days of the Reed Gold Mine to modern operations by companies like Carolina Gold Resources Inc., the state’s rich gold mining heritage continues to be an important part of its identity.
Many historical mines are now preserved as landmarks, offering a glimpse into the past while current explorations ensure that the legacy of gold mining in North Carolina endures.
Written by ChatGPT, Directed and Edited by Joshua D. Glawson
Originally Published on LinkedIn.
