The Original Black Friday: Wall St. Hustlers, Gold and Chaos
How Two Wall Street Hustlers Tried to Buy the Gold Market and Broke the Economy
Intro
Hi there, this is Max!
You know, originally, we planned to share the MaxDividends Last Call Black Friday Offer in this article.
But something unexpected happened—all the slots sold out early in the morning before this post even went live. Totally sold out! It was a very limited number of slots. Guess we’ll be better prepared next year 🙏
Have an awesome Friday, a great weekend, and let’s finally uncover the real deal about Black Friday!
The Original Black Friday: How Two Wall Street Hustlers Tried to Buy the Gold Market and Broke the Economy
Think Black Friday is all about snagging deals on TVs and toasters? Wrong.
The OG Black Friday had nothing to do with shopping sprees and everything to do with greed, gold, and chaos.
Back in 1869, two Wall Street schemers—Jay Gould and Jim Fisk—decided to corner the gold market, and in the process, they sent the entire economy into a tailspin. What happened next?
Let’s just say it involved sky-high gold prices, a furious President Grant, and financial mayhem that still makes economists cringe. Intrigued? Keep reading—it only gets wilder.
The Setup: How Two Railroad Men Tried to Rule Gold
Jay Gould and Jim Fisk weren’t your average financiers. As executives of Erie Railroad, they already had a reputation for playing fast and loose with the rules. But in 1869, they hatched a plan that took greed to a whole new level.
Here’s the scheme:
Buy Up Gold: Gould and Fisk started hoarding gold like it was going out of style, driving up the price.
Corner the Market: The idea was to create an artificial gold shortage, forcing prices through the roof.
Profit from Railroads: They figured the rising price of gold would increase grain prices, which would lead to higher demand (and tariffs) for their railroads to transport crops.
It wasn’t just a bold move—it was borderline insane. But Gould and Fisk had one key weapon: connections. They cozied up to politicians and even tried to sway President Ulysses S. Grant’s administration to stop selling government gold reserves. If they could pull it off, the sky-high prices would make them fabulously rich.
Gold Fever Hits the Market
As Gould and Fisk bought up gold, prices soared. By late summer 1869, the price of gold was climbing so fast it had investors salivating. Wall Street was buzzing with speculation, and the economy felt the heat. Farmers, merchants, and businesses were all caught in the ripple effects of the rising prices.
By September, it was chaos. Gold had skyrocketed to $162 per ounce—up from $130 just weeks earlier. It looked like Gould and Fisk were about to pull off the greatest financial coup of the century.
Enter President Grant: The Party Crasher
But Gould and Fisk didn’t count on one thing: President Grant wasn’t about to sit back and let them torch the economy. Grant, sensing something fishy, took decisive action. On September 24, 1869—the day now infamous as Black Friday—the U.S. Treasury flooded the market, selling massive amounts of gold.
The result? Total panic. The price of gold plummeted from $162 to $133 in minutes. Investors scrambled to sell, but it was too late. The market collapse left devastation in its wake.
The Fallout: When the Dust Settled
The crash didn’t just wipe out Gould and Fisk’s gains (though they still managed to pocket a small fortune). It triggered widespread financial ruin:
Farmers lost big: With gold prices crashing, grain prices followed suit, leaving farmers in the dust.
Businesses went bankrupt: Many firms that had bet on the gold rally were left holding the bag.
Investor confidence tanked: The chaos undermined faith in financial markets, shaking the very foundations of Wall Street.
Why It Matters: Lessons from 1869’s Gold Grab
Black Friday wasn’t just a one-off disaster; it left lasting scars on the economy and financial regulation. It taught us a few timeless lessons:
Greed Has Consequences: Gould and Fisk’s scheme was a masterclass in hubris. They thought they could outsmart the system, but the market—and the government—had other plans.
The Power of Intervention: President Grant’s bold move to sell gold showed that government intervention can stabilize markets—but not without some pain.
Market Manipulation Hurts Everyone: From farmers to financiers, the ripple effects of this scheme were devastating, proving that unchecked greed can wreck entire economies.
Fun Fact: Gould and Fisk’s Reputation Survived
Despite their role in one of the most notorious financial scandals of the 19th century, Gould and Fisk didn’t exactly fade into obscurity. Gould went on to become one of the wealthiest men of his time, while Fisk continued his colorful career as a showman and financier. Talk about landing on your feet.
The Legacy of Black Friday
Today, Black Friday might be synonymous with shopping sprees and holiday sales, but its origins are rooted in one of the most dramatic financial meltdowns in U.S. history. The 1869 gold scandal wasn’t just a cautionary tale—it was a wake-up call about the dangers of unchecked greed and the power of government intervention.
So the next time you see a Black Friday deal, remember Jay Gould and Jim Fisk, and be glad the stakes are a little lower. At least today, you’re fighting over discounts—not the fate of the economy.
That’s All for Today!
Best Regards, Max
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