Ship carrying $1.5M in gold sank off NC 167 years ago. What happened to the treasure?
A ship carrying more than $1.5 million in gold sank off the North Carolina coast 167 years ago.
The SS Central America also had 500 people on board when it went down Sept. 12, 1857. Despite the deadly outcome, the shipwreck has become known for the lost gold, which helped spark a nationwide economic downturn and a legal battle over its recovery, according to historians.
So, what happened to the sunken treasure? Here’s what we know on the anniversary of the shipwreck.
How did the ship sink?
Before the Panama Canal was built, coast-to-coast travelers left California, went south, crossed the Isthmus of Panama and then headed north up the Atlantic Coast. The SS Central America was venturing from Cuba to New York when it made its “ill-fated” trip in 1857, according to the Smithsonian and the BBC.
“In addition to about 500 passengers and a crew of 100 aboard, the Central America was carrying mail and more than $1.5 million in gold, including coins minted in San Francisco,” the N.C. Department of Natural and Cultural Resources wrote in a blog post.
During its last voyage, a hurricane hit the SS Central America, causing a leak. The ship went down 200 miles from Cape Hatteras, part of the Outer Banks barrier islands, historians said.
Most of the people on board died. But about 145 of the passengers got to safety with the help of those on three nearby vessels.
“The survivors were cheered and celebrated in the news, but as decades went by, attention switched from survivors to the treasure still in the ship’s cargo holds,” the Smithsonian National Postal Museum wrote in a blog post. “Newspapers were filled with survivors relating incidents of men tossing gold they had on them onto the deck of the ship, lest it weigh them down if they were to go overboard.”
What happened to the gold?
The shipwreck had far-reaching impacts.
“The great loss of gold was a contributing factor to the Panic of 1857, a short yet severe economic downturn fueled by a loss of confidence in the banking system,” North Carolina historians wrote. “The panic was marked by the suspension of gold payments by financial institutions, the failing of businesses, factory closings and a rise in unemployment.”
The gold, which had been collected during the California Gold Rush, remained in the ocean until treasure hunters found the shipwreck in 1988. But three years later, a court order put a temporary end to gathering the valuables.
Eventually, several objects reportedly started to be uncovered in 2014, including early photographs that had been sealed in a way that protected them from the water. In 2018, some of the recovered gold was for sale at a National Rifle Association meeting in Texas, according to the Star-Telegram.
As of 2016, North Carolina historians said “more than 13,500 coins, bars and ingots have been recovered.”
This story was originally published September 12, 2024 at 7:06 AM with the headline "Ship carrying $1.5M in gold sank off NC 167 years ago. What happened to the treasure?."
