For people who want to make money from their hobbies, panning for gold is often the go-to choice. It’s been around for centuries, which leads many people to wonder if it’s still worth their time. After all, finding a few bits of gold dust might not seem like the best way to make an income, or is it?
Panning for gold is profitable if you go to the right bodies of water and practice panning to extract as much gold as possible. Gold prices go up and down, so it’s important to sell at the right time. Some gold pieces have other minerals, rocks, and metals that you could sell to raise your profits.
In this post, I’ll show you why panning for gold can be profitable and what you should avoid to get the most lucrative results.
1. Choosing the Right Location Is Essential
Gold panning can’t be profitable if you search places that don’t have any gold. Many waterways don’t have gold, while others are known to have plenty. If you head to the right location, you’re much more likely to have positive results. Additionally, choosing the right part of the body of water also makes a big difference.
Here’s the four-step process to ensure you’re in the right place to make a profit while panning for gold:
- Make sure you’re going to a place that’s known to have gold. If you’re a beginner, you can research where prospectors from the past and present have panned for precious metals. Hint: Rivers and creeks that go near volcanic systems are more likely to have gold because it comes through the fault lines.
- Check geological formations for quartz, black sand, iron, or calcite. These formations are present in the same areas as gold because they’re all found below the surface. They break apart, scattering throughout the region while being carried by nearby bodies of water.
- Pan for gold where it can get trapped and lodged. Try going to river bends, places where wide rivers narrow, large obstacles that can hold small pieces of gold, and more. Gold is more likely to get caught in silt or clay than it is to stay in loose sand and dirt. Many people have success panning for gold on solid-bottom rivers, such as granite.
- Find moving bodies of water since they’re more likely to carry gold. Lakes usually don’t have as much gold as rivers because they don’t erode nearby rocks and minerals that have gold in them. One of the many reasons that some waterfalls have gold at the base is that higher water pressure typically erodes minerals and exposes metals much quicker.
Another way to find a good place to pan for gold is to use drones. Drive to a river and fly a drone with a mounted camera. Connect it to your smartphone, tablet, or laptop, then look for the aforementioned geological features that indicate gold could be nearby. You’ll save a lot of effort while exploring the area from above.
2. Practice Makes Perfect
It’s important to keep trying, even if you don’t find gold the first time. Panning for gold can be tricky because you must know how to separate gold from fool’s gold and other metals that look similar. Furthermore, you need to hone your panning skills. Gold panning requires subtle rotations to loosen gold bits without spilling them back into the water.
Try these tips to practice your gold panning and make more money:
- Gold Rush Nugget Bucket recommends learning how to read a river to know where gold will be. If you can find where a river used to flow, you’ll know what minerals, rocks, and metals it can carry. For example, a river that flows through a mountain can have profitable gold to pan far downstream (sometimes many miles away).
- Learn how to efficiently separate gold dust from other minerals and rocks in the pan. Gold is heavy, so it sticks to the pan and stays away from the water much easier than other sediments. The key is to rotate the pan at a steady, constant rate while slowly disposing of the water. You can remove the gold with prospecting tweezers.
- Practice during the best conditions. Rainstorms and melting snow often rip gold from veins, depositing it into nearby rivers and streams. Wind and murky water can make it difficult to spot gold, especially if you’re a beginner. Consider waiting for a clear, calm day when people aren’t boating or swimming in the area.
- Don’t shy away from revisiting a place for more gold. Not only could you have missed some of the gold when panning, but new gold shows up in places due to fault activity and water movement. Mark some of your favorite places on a map to see if you can keep going back to them to profit while panning for gold.
Panning for gold is a lot like muscle memory. The more you do it, the more you’ll learn all of the necessary skills to increase your profits. It’s important to be consistent with your hobby if you want to make a noticeable income from it. While there’s a chance you could find a lot of gold on your first outing, it’s more common to find small flakes here and there.
3. The Price of Gold Fluctuates
Gold profits go up and down while the curve stays relatively positive and constant. In other words, gold can be worth more one day than the next, but the overall cost grows over time. It’s better to sell your gold as the market hits a high day. This method will greatly increase your profit, especially if you go panning regularly.
So, what affects how much you can profit from panned gold?
Changes in the Stock Market
Gold is closely tied to stock market adjustments. It’s often used as a failsafe against market crashes and inflation, but there’s no denying that its price goes all over the place. Keep a close eye on the stock market, then check how much gold-based stocks are increasing or decreasing before selling your findings.
Raw gold is often mixed with calcite, pyrite, silver, and other minerals or metals. Pure gold has all of these impurities removed, which means it’s much more valuable. The purity of your gold heavily impacts how much you’ll profit from the gold you find while panning. Remember, it’s almost impossible to find 100% pure gold in nature, but you can get close to it!
The Weight of Panned Gold
Big gold nuggets are much more valuable than small gold flakes. Not only do they weigh more, but it’s easier to remove their impurities. Gold is often priced by the gram, with costs constantly moving. Finding a couple of grams of gold while panning in a stream can be quite profitable for beginners and experts alike.
However, just because the price of gold might’ve dropped a little bit doesn’t mean you can make a big profit while panning for it. It’s better to save your gold collection in a fireproof safe and wait until the price reaches a desirable point. You’ll end up with much greater profits, which is one of the main reasons you want to find gold.
4. Gold Panning Profit Margins Are Huge
Gold panning gear is relatively inexpensive. The pan and sniping bulb last a very long time, which means you don’t have to worry about recurring repair costs. Although you might not find incredible amounts of gold every time you pan, finding an ounce of gold is enough to make the whole process more than worth the effort.
You’ll rarely find someone who says they found gold that’s worth less than their panning equipment. According to Dredgenz, panning is one of the most popular forms of gold prospecting because it’s the cheapest option. Furthermore, it’s extremely simple and doesn’t require motors or electricity.
While you might not find gold every time you go panning, even a small amount is enough to cover the costs of your equipment. One gram (0.04 oz) of gold is usually around the price of high-quality gold panning gear. An experienced gold prospector can often find a gram or more when visiting a chosen and researched waterway.
5. Many Locations Have Panning Limits
Make sure you know how much gold you’re allowed to take home with you. Having a limit on the amount of gold you can take means that there’s a limit on your profit margins. Check the place’s limits and capacities, and don’t forget to check if there’s a claim on the land. Gold claims prevent you from taking any gold, which means you won’t profit.
Keep these factors in mind when it comes to gold panning limitations and rules:
- Many state parks and public lands don’t let you collect more than a designated amount of gold and other minerals, metals, and rocks. For instance, the California Department of Parks and Recreation has a limit of 15 pounds (6.8 kg) of mineral material collection per day. If you found 15 pounds (6.8 kg) of gold, you’d be rich!
- Some protected waterways don’t allow panning or dredging because it can disturb local plants and fish. Constant sifting, panning, or sluicing can disturb the sediment, scaring fish and causing potential harm to nearby habitats. Make sure you ask ahead of time before panning for gold. A fine would ruin your profits.
- A lot of state parks, national parks, and BLM lands have visiting hours that include panning for gold. Staying within the daylight visiting hours will prevent unwanted fines. You’re more likely to find gold during daylight anyways, so these limitations usually don’t impact your potential profits too much.
All these regulations affect when and where you can pan for gold, which means they directly impact how much money you can make. Thankfully, there are plenty of places you can pan for gold (consider public lands throughout the United States).
Note: Gold collection limits are often so high that it’s extremely unlikely that you’ll exceed the amount you’re allowed to bring home.
However, you might wonder if you can legally pan precious metals if you’ve come across a deposit in a place you own. For more information, check out my article on whether or not you’re allowed to mine for gold on your own property: Can You Mine for Gold on Your Own Property?
6. Some Prospectors Make More Than Their Day Jobs
Being able to make more than minimum wage while panning for gold makes it a great hobby for many people. If you want to pan for gold to supplement your retirement or work while going to college, you’ll have much more realistic results. The average person is unlikely to make more than a lucrative career, but it could be a replacement for minor part-time jobs.
Here’s a list of stats you should know about gold’s potential profitability:
- Comparably estimates that the average full-time prospector in the US makes $45,000 annually. These numbers heavily depend on when, where, and how you prospect for gold. Unfortunately, they also include suction dredging, which is far faster and more advanced than panning for gold.
- According to ABC News, many people from their 20s through 50s are quitting or supplementing their jobs by panning for gold. The profit margin combines with outdoor adventure to make it much more exciting than the average minimum wage job. Additionally, there’s the chance of striking it rich that doesn’t exist at normal jobs.
- Panning for gold isn’t nearly as reliable as a steady income. The majority of regular careers and jobs provide you with hourly, salary, or commission-based payments. You can get paid every time you pan for gold or never if you don’t find anything. Sluicing, dredging, and underwater metal detection could increase your profits.
- People who pan for gold full-time have unique work schedules. You might find yourself traveling more often, working odd hours, or working a lot more than you did at your day job. Gold panning is profitable if you find enough gold, so putting yourself in as many positions to find gold as possible is essential.
7. Gold Can Contain Other Valuable Metals and Minerals
Gold is often found around copper, iron, silver, and other elements that can sell for quite a bit. Panning for gold can yield all of these elements, which drastically boosts your profits. Gold is often found in pyrite, calcite, and other minerals, so you might have to extract it if you find large nuggets while panning for gold.
While gold is the most popular metal to pan for, why not benefit from everything you collect? If you find gold inside the other minerals, you’ll have to extract or melt it, depending on the mineral or metal.
Review these issues regarding profiting from minerals panned with gold:
- Pyrite (fool’s gold) can contain gold that’s very hard to spot. Gold and fool’s gold look similar, making them hard to distinguish. If you find a large amount of fool’s gold, it’s worth keeping because you might be able to find gold inside of it. Small traces of gold can increase pyrite’s value exponentially.
- Silver and gold can be found under the same conditions. Since silver is also very valuable, you could make a lot of money from panning for gold and collecting silver. Silver used to be worth more than gold and is actually much more durable. Much like gold, silver binds itself to other minerals.
- Just because gold is bound to a rock doesn’t mean it’s worthless (or not worth as much). Many goldsmiths and metallurgists can separate gold from worthless rocks to make it easier to sell. Get multiple quotes to know where your profits lie ahead of time.
8. Panning for Gold Can Be a Lucrative Hobby
If everyone could quit their day job and start panning for gold, we’d have a completely different workforce (not to mention the fact that gold would be less valuable). The reality is that panning for gold is an adventurous way to strike it rich if you’re lucky. However, most people should enjoy the process rather than do it to replace their income.
Unlike other jobs, you can’t predict your profits or income from panning for gold. However, unlike other hobbies, there’s a small chance that you can retire early or go on vacation from your findings. While panning for gold shouldn’t be seen as a sole source of profit, it can be an exciting way to make extra money if you happen to find some.
If you want to increase your profits, consider getting a sluice or a high banker. A sluice lays in moving water, collecting heavy metals (including gold) for you to pan. A high banker is a sluice that generates water pressure, letting you pan for gold in places with a lot less water movement (slow creeks, tributaries, etc.).
Pouring all of the sediment and water from the sluice into a bucket lets you pan away from the water source, meaning you don’t have to worry about standing in the water the whole time.
I suggest looking at gold panning as a hobby that could yield random profits. Panning for gold isn’t a great career replacement since it’s not very reliable. However, many people have found large amounts of gold in rivers, mountains, and other locations to help them achieve their financial goals.