New Gold Rush in California

Within an hour of downtown Los Angeles, people are seeking that one sure commodity.

"I'm here to find gold," said Kevin Brown. "I'm a studio lighting technician in Hollywood, between the writers strike that happened last year, and the Screen Actors Guild, whatever they want to call it. Lately I've had to turn to having to do it for extra cash."

Geologists estimate that during the gold rush of 1849 in California, about 80 per cent of the gold was never found. Now, with the price of gold soaring and the economy falling, the idea of panning, digging or diving for precious metal has become serious business.

"There's definitely gold nuggets down in the bottom here," Brown said. "Just a matter of getting 30 feet down lower than any old timer or modern prospector has done."

And, for people willing to put in the effort, it's paying off.
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"I just wanted a little California gold. That's all I initially started at," said David Perkins, an unemployed aerospace worker. "And, one thing led to another, and within my first year, I actually picked up close to two pounds of gold."

But prospecting is not easy money. It takes time and a lot of hard work. John Gurney, who came out to California from the East Coast to find gold, was able to pull out about $35,000 worth of gold nuggets over a couple of months. Then there was a dry spell -- and now, John is at it again.

"Some days you sit here and make two cents. Some days you make a couple of hundred dollars. I had one good day and made about $10,000," Gurney said.

California's second gold rush has also created at least one recession-proof business.

Keene Engineering of Chatsworth, California, makes the equipment you need to find gold -- from plastic pans to large commercial rigs. The owners say their business has doubled.
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"There are hundreds of people coming in here to buy gold pans and sluice boxes, and take their chances of finding gold in the local hills and mountains," said sales manager Patrick Keene. "There is a whole new flood of prospectors and miners."