In recent years, gold prices have been skyrocketing. With the rise of popular TV shows such as Gold Rush, many new prospectors are hoping to get into the gold mining game.
Can you kiss your day job goodbye and live off gold mining? The truth is, there isn’t a simple yes or no to this question, especially if you are a recreational or small-scale miner. It’s not impossible, but it will be an uphill battle to make a good living from gold mining.
Can People Make a Decent Living Gold Mining?
Yes, some do. Large, multi-million dollar corporations do turn huge profits from mining, but they also have to spend massive sums of money to get their gold.
There are also small-medium mining operations in remote parts of the globe such as Central America, Asia, and Africa. There are quite a number of success stories coming from these miners, but their path to riches is covered with extreme obstacles such as corruption, theft, violence, disease, and even murder.
But what about mining here in the United States? If you’ve got dreams of buying a claim in Alaska or California, there are several concerns you need to address before you begin.
There is a world of difference between a large commercial mine and a guy with a sluice box trying to find some gold in the river.
Also Read: How Placer Gold is Deposited in Creeks and Rivers
Most Prospectors Struggle to Make a Living
Some of the hardest working gold miners I have the chance of knowing don’t make enough out of gold mining to survive. These folks have mined gold for over half of their lives, but they are still struggling to make any real money for their efforts.
Why is this the case? There are all sorts of reasons, as everybody has different backgrounds and circumstances.
However, we do know there are external factors that affect the profitability of gold mining. According to experts, many large gold deposits that are already discovered have been claimed up. It’s harder for the average guy to get out and find a large gold discovery.
This impending shortage can put the gold demand and supply off balance. Add to the fact that there are barely any new large gold mines been uncovered nowadays; we can expect even more gold scarcity and higher gold prices.
This is not to say that you can still find gold. Of course you can! But we are talking about making a living here. Most serious prospectors today would be doing great if the were able to find a pound of gold in a season. That is definitely a lot of gold and a serious haul for anyone, and just about every gold prospector I know would be thrilled to find that much gold.
But when you pencil it out, its still only worth around $14,000 at today’s gold price. That’s a lot of money, but still not a living wage.
The Past vs. the Present Gold Rush
If you have been wondering how gold rushes of the 1800s are different from the present day, they are mostly similar. However, the rushes of today are no longer as massive a scale as the days of old. Today’s serious gold mining is done by large corporations. The small-scale operations are less common than ever before.
Advances in modern mining are primarily attributed to the advancement in mining technology, which allows most of the prospecting to be done with modern machinery instead of manual labor. Technologies such as drones, ground imaging, 3D mapping and robo-drills enable miners to enjoy lower entry costs than their counterparts from the past.
Nevertheless, having a proper blueprint before investing heavily is crucial to your success in gold mining. The days of using a shovel and a gold pan and recovering ounces of gold per day are long gone. Sure it could happen, but I wouldn’t bet on it…
What do Miners Need to Succeed?
Startup costs are usually the biggest roadblock most miners face. While large mining companies have millions of dollars to invest in their operations, the average gold miner has limited funds to spend.
If you plan to invest significant sums of money on heavy machinery to dig through the earth, you can definitely expect years for the mining permit to get approved before you can get started.
Another factor that to contemplate is your breadth of knowledge in gold mining. Do you actually have the know-how to strike gold consistently and in profitable amounts?
Most people who are planning to enter the mining life have barely any practical mining experience. They have dreams of recovering thousands of ounces of gold, but they don’t have any practical way to make it happen.
If you do not possess a lifetime’s worth of mining knowledge, your chances of success are disadvantageous. To be honest, there are few successful gold miner who had less than at least a few years of mining experience; most of them started decades ago back when gold prices are still relatively low. Someone who was just watching ‘Gold Rush’ on TV and decided they want to go get rich are going to have a serious uphill battle.
Then, of course there is the luck factor. Several of the modern day full-time miners are lucky enough to be working on claims that were already claimed by their family or relatives from the old gold rush years.These folks already possess the relevant mining experience, and they get to enjoy the massive advantage of prospecting on rich ground.
If you are just a beginner in gold mining, chances are you won’t find any rich ground to mine on without any serious research. Now don’t get me wrong, there is rich ground out there that is still open and unclaimed. You need to get out there and find it though, and that takes time and experience.
Test the Waters First
Gold mining isn’t as easy as buying a gold pan or metal detector
Most gold prospectors who end up being success usually start out as hobbyists and progressively move on to mining full-time only after they have clocked the experience.
Be patient and enjoy the activity, once you are consistently bringing in the profits then gradually scale up your mining operations.
Don’t get me wrong! You can still find gold and you can be successful doing it. I just want you to be smart about it and be reasonable with your expectations, especially if you are new to the hobby and don’t have a lot of experience. Get a good book on gold prospecting
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