California, founded on a lust for gold, has a new yellow metal rush in the Mojave desert.
In the Mojave town of Johannesburg, 140 miles north of Los Angeles, a stampede for gold has sparked a real estate boom, the Los Angeles Times reported.
Once a bustling mining hub in the late 19th century, the sun-cracked region in the Rand Mountains is seeing renewed interest as gold prices soar to record highs.
With gold now at $2,630 per ounce, prospectors and investors are flocking to historic mines, eager to tap into the hidden riches beneath the craggy brush.
David Treadwell, a Hemet-based real estate agent, reports a surge in demand for mining properties, selling small claims for under $50,000 and larger ones for hundreds of thousands.
He said properties with patented mining rights are especially valuable, granting owners the rights to both surface and mineral resources. This makes them a gold mine for serious buyers, eager to explore deeper than the typical 20-foot limit of non-patented lands.
Among those capitalizing on the opportunity is Sean Tucker, an entrepreneur who founded Gold Discovery Group in 2020.
Tucker has invested millions to acquire 97 acres and lease more than 2,500 acres of mining land near Johannesburg. His operation has drilled holes to survey gold deposits, with plans to start full-scale mining next year. Tucker’s venture represents a modern take on California’s gold rush, using advanced technology to unearth the precious metal.
He figures his cost to extract gold from the ground at around $1,220 per ounce. With gold trading at $2,630, that gives a profit margin of about $1,400.
The town of Randsburg, once home to 3,500 people during the last gold rush more than a century ago, is now a quiet ghost town with a population of just 45.
However, properties there are again attracting attention because of their historic ties to gold, with some selling for up to $175,000.
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While mining operations are expensive and risky, with challenges like thieves and hazardous working conditions, the allure of gold continues to draw investors, who see their fortune underneath the dirt.
Though many may not strike it rich, the real winners in this modern gold rush could be real estate agents and mining entrepreneurs — as the cycle of California’s gold fever continues to capture imaginations and wallets.
— Dana Bartholomew