Gold Rush 2.0: Coin Collecting Turns into an Adventure with River Gold

A cold breath swept across the vast, lonely land as fog slowly descended over the glassy Yukon River. The silence was only broken by the gentle splashing of water carving its way through the icy landscape. It was a scene that seemed unchanged for centuries until the quiet murmurs of nature were suddenly pierced by wild shouts and cheers. In the distance, figures emerged on the riverbank. Men and women, with adventurous sparks in their eyes, eagerly plunged into the icy waters of the Yukon. They were in search of something greater than themselves - hunting for the precious metal that ran through the riverbed, fueling dreams of wealth and freedom.

This scene from 1896 went down in history as the Yukon River Gold Rush. The discovery of gold deposits in an Alaskan river is now primarily associated with the adventurous spirit and boundless optimism that drew thousands of people to the rugged, untouched wilderness of the North. In this relentless pursuit of happiness and prosperity, dreams were fulfilled, hopes were shattered, and lives were forever changed - and the gold from this river still captivates people over 100 years later: In 2024, for the first time, a commemorative coin was minted with Yukon gold. The $10 coin from Barbados bears the alloy designation "990 Fine and Yukon Gold," containing both fine gold and the legendary Yukon gold.

In Europe, the Yukon Gold coin "River Gold – American Eagle," minted with a limited edition of only 1,637 pieces, apparently struck a chord: The issue was oversubscribed multiple times, with more than half of the orders unable to be fulfilled. The strong demand is hardly surprising, as alluvial gold has a long tradition in Europe and especially in Germany - even though Europe is not necessarily considered a continent with abundant precious metal deposits today. Between the 17th and 19th centuries, many German monarchs extracted gold for coinage from domestic and well-known rivers such as the Danube or the Rhine, as well as smaller waterways like the Eder, the Isar, or the Inn in Bavaria, and the Schwarza in Thuringia – though these rivers were by no means as productive as the Rhine.

The history of money is a history of gold - or rather, river gold. When money, as we know it today, was invented in ancient Anatolia, alluvial gold was predominantly used at that time - so it can be rightly said that the legendary Croesus would hardly have attained his wealth without river gold. The first known gold was found in Lydia. The ancient geographer Strabo reports on this in his works, which he wrote during the time of Augustus. He describes the gold deposits in Lydia and mentions the legendary wealth of King Croesus and his ancestors, which arose from the gold dust of the Pactolus River.

While numismatists use the commonly known term "river gold" from a geological perspective, the term "placer gold" would be more appropriate. The latter refers to metal-bearing deposits in river sediments, with "placer" here not meaning a cleaning agent but rather a technical term for these specific deposits. Gold in rivers comes from gold-bearing veins in the mountains and was washed out during the Ice Age. Due to its high density, it settles on the edges of rivers, especially in areas where the water flow decreases, such as in meander formations. There, gold deposits in sandbanks are also called "placer gold" - the Spanish word "placer" means "sandbank."

This geological crash course immediately clarifies that Gold panning yields are often disappointing. Often, only tiny gold particles, called micro nuggets or grains, are found. The amount of gold is usually low, especially in rivers like the Rhine. Even the search for "gold flakes" is laborious, as about 166,000 pieces are needed to obtain one gram of gold. Therefore, gold panning is a time-consuming and often frustrating activity.

Additionally, alluvial gold almost never occurs in pure form but is mixed with other metals such as silver, copper, or platinum alloys. The extraction of river gold typically involves sluicing the alluvial river deposits with water. Gold prospectors need special gold pans or sieve troughs for this. The gold-bearing sediment is extracted by washing it in these pans or by passing it through a sieve trough. The heavier gold portion settles at the bottom, a process that can be enhanced by lining the pan bottom with skins to collect the gold particles in the wool. In English, this technique is called "panning," referring to washing with a pan.

But back in the early days of money and gold, the Lydians naturally wondered how gold originated in their river. Although they did not have the knowledge we have today about gold-bearing quartz veins and rock erosion, they still told a fascinating story about the origin of gold in the river. This story revolves around King Midas, a king from the neighboring region of Phrygia. Midas once saved a drunken companion of the wine god Dionysus and then returned him. As a reward, Midas was allowed to make a wish, and he chose that everything he touched would turn to gold.

At first, Midas was delighted with his wish and believed himself to be the richest man in the world. Soon, however, he realized that his wish was a curse. Everything he touched turned into gold, even his food and drink. Eventually, he realized his mistake and begged Dionysus for forgiveness. Dionysus instructed him to wash his hands in the source of the Pactolus River to lose this gold-making property. Midas followed this advice, but the Pactolus River has been carrying the so-called placer gold since then.

Regardless of the origin of the gold they obtained from the nuggets of the Pactolus River, the Lydians began minting the first coins. This development marked the beginning of coinage in Lydia - an activity that significantly changed human life. The gold brought down by Pactolus consisted of about 45 percent silver and 55 percent gold, resulting in a natural alloy and producing a paler gold color. This gold-silver mixture was called "Electrum," named after the Greek word for bright amber. However, it was soon found that minting coins from this alloy was problematic since no one knew exactly how much gold and silver was contained in the coins.

For the rulers in the German territories from the 17th to the 19th centuries, minting gold coins with a provenance was primarily a matter of prestige and a form of location marketing – much like "Made in Germany" is known as a brand today.

They were willing to pay for this luxury, as extracting gold from rivers was already expensive and labor-intensive 200 years ago. However, the rivers in Germany had always been important trade routes and thus developed into lines of prosperity. People settled along the major waterways such as the Rhine or the Danube early on, and over the centuries, trading cities developed into metropolises. Gold mostly occurred as a by-product at that time but was eagerly purchased by the princes and processed into gold coins.

The elaborate gold mining for coinage was common in several old German territories such as Bavaria, Hesse, and Baden between the mid-18th and 19th centuries and was understood by many rulers as a matter of importance – because whoever could claim to not only possess gold on their own territory but also to utilize it, could play in the front row in the concert of powers in the German-speaking area: Gold and silver were then one of the most important indicators of a nation's economic strength. In addition, the powerful needed the money to finance their armies and thus secure their power.

Those fortunate enough, like the House of Hanover, could count themselves lucky as they had the Harz Mountains, an area where gold was also found. All others had to resort to their rivers - these natural resources, even if they only appeared in microscopic form in rivers, were a welcome reason for princely self-promotion.

While today, indicating the fineness is standard for modern bullion coins, river gold ducats are recognizable by magnificent images with maritime motifs such as a river god and regional references like famous religious buildings. On individual coins, even the workflow of gold extraction was depicted: a worker brings the river sand, large amounts of river sand are washed up in the middle and poured over a cloth, and then the gold flakes are heated, and the gold is melted out.

However, the characteristic of river gold ducats is the identifying edge inscriptions: Bavarian gold ducats were inscribed with "EX AURO RHENI," meaning "from the gold of the Rhine." This inscription was also found on many other river gold ducats because the Rhine was the most important source for the extraction of golden coin metal. From the Palatinate come coins with the inscription "SIC FULGENT LITTORA RHENI": "Thus shine the banks of the Rhine." Other river gold ducats bear inscriptions such as "DANVBII" (Danube), ISARÆ (Isar), or OENI (Inn). The first river, gold ducat, is a half ducat from 1674 with the portrait of the then Elector Palatine, Charles Louis (1648–1680). The last German river gold ducats date from 1863 and were minted in Bavaria - just before the founding of the German Empire, gold extraction from the rivers was no longer viable, even for the confident princes, especially as more and more natural river courses were converted into navigable waterways.

For coin collectors, river gold ducats are coveted for several reasons: their design makes them some of the most beautiful European coins of past centuries. They show, for example, cityscapes with the respective river, but also river gods with a spring urn. River gold coins thus have a symbolic significance for domestic waterways and establish a certain golden identity for them. Like Wagner's "Rheingold," they promote a state's prosperity and are particularly interesting for collectors because of their unique iconography. Holding such pieces made of Rheingold conveys a special feeling and contributes to the cultural appreciation of these coins.

River gold coins are also rare because gold mining in earlier times was already very laborious, and German and European waters produced only small amounts of gold. The minting numbers of German river gold coins also varied greatly depending on the volume of gold submitted in a year – the gold had to be delivered to the sovereigns, who paid a set price, which often was lower than what could be obtained on the free market for gold. Not everyone was allowed to search for gold in public waters; a permit for gold panning was required. These permits were also regularly checked to prevent gold from being sold under the table. Most years saw only a few thousand pieces minted due to these restrictions.

The German river gold amount lags far behind the gold later extracted from rivers in America and Australia. The tradition of gold panning dates back to the Celts but was revived in the Middle Ages. From the 17th to the 19th centuries, this gold was mainly used for the minting of gold coins and ducats. These were rarely used for daily transactions but were rather collected to represent the wealth of the country from the rivers. Most river gold coinage, therefore, clearly indicates its origin from a specific river.

In general, the amount of gold extracted decreased significantly from the 18th to the 19th century, especially due to the straightening of rivers. Nowadays, gold mining in German rivers is nothing more than a pastime for adventurous nature lovers. German river gold is only obtained at a single gravel plant on the Rhine, where it occurs as a by-product. The gravel plant in Rheinzabern in southwestern Germany is the only official gold producer in Germany, and the authorities do not disclose the exact amount of gold obtained.

In addition to the natural rarity of river gold, another detail contributes to the fascination of river gold coins: most issues were not intended for circulation from the outset but mainly served as gift coins or awards. They were awarded to deserving members of high society, such as members of royalty or the Palatinate, and were therefore not considered circulating coins. These coins were already very rare at the time and gained an inestimable significance as a tribute bestowed by the sovereign of the state.

These aspects ensure that river gold coins have repeatedly achieved record results at auctions. For example, in October 2021, a Danube gold ducat was offered for auction at the Gorny & Mosch coin dealership in Giessen and fetched a top bid of 13,000 euros. The coin depicts the river god facing left with his right arm resting on a spring urn and his left arm on the Bavarian coat of arms – a typical representation, with the river god mostly depicted as a bearded and sometimes wild man. At the Berlin auction of the renowned auction house Künker during the World Money Fair 2024, several river gold ducats were also auctioned: A Rheingold ducat, with an estimated price of 3,000 euros, received a bid of 8,000 euros. Isar gold, estimated at 5,000 euros, was sold for 9,500 euros. At the top were two ducats from Inn gold (estimated price 10,000 euros, bid 15,000 euros) and Danube gold (estimated price 15,000 euros, bid 19,000 euros) – proud prices for each 3.49 grams of gold.

The fascination with river gold continues in modern numismatics, not least because of such auction results. In 2020, a German precious metals dealer, who typically deals in gold coins like the Krugerrand or the American Eagle, offered river gold in a small glass vial containing around 0.25 grams of genuine river gold from the Naab River in the Upper Palatinate near Weiden in Bavaria. The demand for modern coins from river gold is high. In 2021, the German coin distributor "Allcollect" released a set of coins made from 990 Danube gold. Only 568 sets of the five coins were minted as the available Danube gold was not sufficient for a higher mintage. According to "Allcollect," 200,000 tiny gold flakes need to be minted for one gram of Danube gold. The five coins showcase selected legends originating from the Danube.

By the way, an unexpected byproduct of Rhine gold is even rarer and more valuable: "Rhine silver" refers to coins minted from the silver that has separated during the extraction of Rhine gold. This is because Rhine gold contains only four percent silver.

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