Black Friday 1869 – Gold crash on Wall Street

The original Black Friday in 1869 – when it wasn’t about shopping, but about gold.

Today, most people associate “Black Friday” with discounts, online deals, and full shopping carts.
However, the very first Black Friday in the USA had nothing to do with that. It revolved solely around one thing: gold.

On September 24, 1869, the United States was gripped by a dramatic gold rush. Within a few hours, the price of gold shot to record levels and then plummeted. Wall Street descended into chaos, and many speculators were ruined.

For collectors, this event offers an exciting historical background to American gold coins of the late 1860s, especially the classic Double Eagle.

Background – Gold and Politics after the Civil War

In the years following the American Civil War, the financial system was very fragile. The government operated with both paper money and gold, and the price of gold had enormous symbolic and practical significance.

When the price of gold fluctuated significantly, it had a direct impact on importers, exporters, banks, and everyone who relied on international payments. This is precisely what made gold an attractive target for risk-tolerant speculators.

Two names stand out: Jay Gould and Jim Fisk . Together with Abel Corbin , the brother-in-law of President Ulysses S. Grant , they developed a daring plan that later became known as the Gold Ring .

The basic idea was surprisingly simple:

• to stop or slow down the Treasury Department’s regular gold sales

• secretly buying large quantities of gold on the New York Gold Exchange

• to create such an artificial gold deficit and drive the price ever higher.

If this plan succeeded, they could sell again at the peak and exit with enormous profits.

The Gold Ring is trying to influence the White House.

Gould and Fisk knew that the president was the key figure in their plan. As long as the Treasury Department was willing to sell gold from the government reserves, any market manipulation could be stopped at any time.

Through Abel Corbin, they attempted to influence President Grant and those close to him. For a time, this strategy seemed to work. The Treasury Department broke its usual pattern of regularly selling gold, and the Gold Ring continued to buy.

In September 1869, the tension rose noticeably:

• The price of gold climbed almost daily.

• More and more traders jumped on the bandwagon, hoping for quick profits.

• Merchants and bankers became increasingly nervous because excessively high gold prices could negatively impact trade and lending.

By the third week of September, New York was finally gripped by gold fever.

Black Friday – September 24, 1869

On Friday, September 24th, the situation escalated.

On the morning of that day, the price of gold was already at around 160 to 162 US dollars per ounce , which was an extremely high level for the time. Many speculators were heavily indebted in the market; even a slight decline would have been enough to cause them problems.

President Grant decided that things had gone too far. To break the speculation, he instructed Treasury Secretary George S. Boutwell to intervene. The Treasury Department announced it would sell $4 million worth of gold from the federal reserves and simultaneously purchase Treasury securities.

The effect was immediate and brutal:

• Within minutes, the price of gold collapsed and fell to around 138 US dollars per ounce.

• Traders who had bought at peak prices suddenly faced ruin.

• Some banks and brokerage firms went under.

• Panic gripped Wall Street and spread to the rest of the economy.

This day went down in history as Black Friday 1869. It was not a shopping event, but a painful lesson about what happens when speculation, politics, and a key commodity collide.

Consequences – Panic, losses and investigation

The financial damage was substantial. Many individual investors lost their fortunes. Confidence in Wall Street and the fairness of the markets was noticeably damaged.

A congressional investigation followed, led by future President James A. Garfield . The commission examined the actions of Gould, Fisk, Corbin, and those close to President Grant.

The result was mixed:

• Gould and Fisk severely damaged their reputations, but managed to avoid imprisonment.

• The investigating committee concluded that President Grant had not personally acted corruptly; however, he was criticized for recognizing the danger too late.

• The scandal shaped later discussions about the relationship between politics, markets, and government intervention.

For economic historians, Black Friday 1869 remains an early, vivid example of how concentrated speculation can destabilize a financial system.

What Black Friday 1869 means for gold coin collectors

For numismatists, such events are more than just exciting stories. They form the vibrant backdrop to the coins we collect.

Gold coins from this era, particularly 20-dollar gold pieces (Double Eagles) dated 1869 , were minted precisely in this climate of uncertainty, speculation, and government intervention. When you hold such a coin, you are not just holding 0.9675 ounces of gold. You are holding a silent witness to a financial drama that once shook Wall Street.

This historical connection is one of the reasons why collectors value these pieces so highly:

• They bear a clear timestamp – the years immediately surrounding the gold rush.

• They are linked to well-documented events and well-known names such as Gould, Fisk, and Grant.

• They combine material value with a powerful narrative that can be passed on.

For advanced collectors, this context is often the difference between “just another gold coin” and a piece that truly stands out in a collection.

Important points for Double Eagle and gold coin enthusiasts

• The original Black Friday in 1869 referred to a gold rush, not shopping.

• The crisis was triggered by the Gold Ring , a group of speculators who attempted to control the gold market.

• President Ulysses S. Grant and the Treasury Department ended the game by injecting $4 million in gold into the market. This caused the price to plummet from about $160 to around $138 per ounce.

• The panic ruined many investors, weakened confidence in Wall Street, and led to a congressional investigation chaired by James A. Garfield .

• Gold coins from 1869, especially Double Eagles , are now considered not only as bullion and collector’s items, but also as tangible evidence of this dramatic financial event.

When your inboxes are filled with Black Friday ads today, it’s worth taking a moment to remember that the “original” Black Friday was something completely different.

It revolved around gold, human greed, and the fragility of trust in financial markets. And for us collectors, it’s yet another example of how a year, a face value, and a small piece of gold often hold far more history than one might initially realize.