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DiamondProspector |
GREAT 1872 Diamond Hoax
Apr 4 2009, 11:33 AM EDT
I was just looking at the information on the Navajo field in Arizona & was reminded of the great diamond hoax. For those of you who are not familiar with this - it is a wonderful story.In 1872, an outcrop in NW Colorado, was 'salted' with rough diamonds & other gems. The event left its imprint in the form of geographic place names throughout much of the West. The hoax scamed former Civil War generals, a U.S. Senator & two presidential candidates & was promoted following discovery of diamonds in South Africa, when the primary source rock for diamond was still considered to be sandstone. The site of the hoax is a sandstone outcrop, 2 miles south of the WY border in what is now known as Diamond Field Draw in Moffat County, CO. The outcrop was salted with 80,000 carats of rubies & pyrope garnet & a large number of diamonds. The two principals of the scam, Phillip Arnold & John Slack, took $12,000 of uncut gems to San Francisco for appraisal. The stones where valued at $100,000. The same stones were later appraised at Tiffany's of New York at $150,000. The Laramie Daily Independent stated $250,000,000 in diamonds were on the ground. The San Francisco Chronicle reported, "... the value of the property was far beyond that of any mining property ever discovered on the coast, not excepting the famous Comstock lode." $200,000 was paid as an advance towards the final purchasing price of $650,000 for the diamond fields. Some of the cash was used to purchase 10 lbs of rough diamonds & other gems in London & nearly 50 lbs of "spinel, rubies, sapphires, and garnet" from Indians at Fort Defiance, AZ. The first time I visited this site, we found the old sieve tailings from the 40th Parallel Survey. I panned 4 diamonds, 17 rubies & 24 pyrope garnets left behind from the hoax. 2 out of 2 found this valuable. Do you?
Keyword tags:
diamond hoax
diamonds
rubies
sapphires
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Petronut |
1. RE: GREAT 1872 Diamond Hoax
Apr 4 2009, 11:54 AM EDT
| Post edited: Apr 4 2009, 11:56 AM EDT
That's a great story, Dan. This is the first time I've heard it. Now see, if they had stories like this in the history text books in schools, maybe kids wouldn't find history so boring! lol I'm going to have to read more about Phillip Arnold & John Slack and their hoax. I'm curious, when was it that it was first realized that this nothing but a hoax perpetrated by these two men? Were they ever prosecuted or did they get away with the hoax? Eric Do you find this valuable? |
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DiamondProspector |
2. RE: GREAT 1872 Diamond Hoax
Apr 4 2009, 1:01 PM EDT
"That's a great story, Dan. This is the first time I've heard it. Now see, if they had stories like this in the history text books in schools, maybe kids wouldn't find history so boring! lol I'm going to have to read more about Phillip Arnold & John Slack and their hoax.It was discovered it was a hoax after the King Survey (40th Parallel survey) found the site. They sampled the site and made an appraisal and after several days discovered the evidence proved it was a scam. I.e. the only anthills that contained gems were those that had foot prints nearby and had holes poked in them with sticks (used to push in the gems). The gems did not continue downstream, and were not found in the underlying sandstone. They were not prosectuted. Apparently all of the politicians were too embarassed. However, at least one investor sued them and got back a small amount of money. There was one story that surfaced later on that indicated that one gemstone found by the King Survey was faceted. But this turned out to be false. Do you find this valuable? |
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havermap |
3. RE: GREAT 1872 Diamond Hoax
Apr 4 2009, 11:49 PM EDT
A facinating story DanI usually think of scams happening in recent history; not the 1800's. I guess they've probably happened throughout history. Do you find this valuable? |
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DiamondProspector |
4. RE: GREAT 1872 Diamond Hoax
Apr 5 2009, 12:06 PM EDT
"A facinating story Danyes, they were common in the 1800s. I didn't realize how many until I started investigating old mining properties. In many historical reports there are assays of very high grade gold or silver. In my follow-up investigations of several of these, even though there was a hole in the ground, my assays showed nothing. I think it was Mark Twain who wrote - "a gold mine is a hole in the ground with a liar standing over it". So I suspect, based on Twain's assessment, it was very common in the 1800s. 1 out of 1 found this valuable. Do you? |
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TallTomSr |
5. RE: GREAT 1872 Diamond Hoax
Apr 5 2009, 12:30 PM EDT
"yes, they were common in the 1800s. I didn't realize how many until I started investigating old mining properties. In many historical reports there are assays of very high grade gold or silver. In my follow-up investigations of several of these, even though there was a hole in the ground, my assays showed nothing. I think it was Mark Twain who wrote - "a gold mine is a hole in the ground with a liar standing over it". So I suspect, based on Twain's assessment, it was very common in the 1800s."My great grandfather was in the Klondike gold rush. He told stories of gold claims being salted and of shotgun salting of old mines. He made a good amount of money on his claims and when he came back to Washington he was smart enough to invest it in the Puyallup Valley land. Most of what is now auburn and several commercial sites used to be his. He bought it cheap and passed it down to his kids as investment property and they only sold a little at a time here and there. My Grandmother still has a good chunk left and now she is getting ready to pass it to my mom. the city of Puyallup wants to buy it but grandma ain't dumb. She knows if she transfers it to mom and they wait out our current economic slump they will get a better price. so some of those old Klondike claims are still paying off today,,lol tom Do you find this valuable? |
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havermap |
6. RE: GREAT 1872 Diamond Hoax
Apr 5 2009, 12:31 PM EDT
Mark Twain was an astute man.
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pvjjh |
7. RE: GREAT 1872 Diamond Hoax
Apr 5 2009, 12:48 PM EDT
Great story. Any finding some of the salted gemstones is still even better. lol What a kick! Paul Do you find this valuable? |
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DiamondProspector |
8. RE: GREAT 1872 Diamond Hoax
Apr 5 2009, 2:22 PM EDT
"My great grandfather was in the Klondike gold rush. He told stories of gold claims being salted and of shotgun salting of old mines. He made a good amount of money on his claims and when he came back to Washington he was smart enough to invest it in the Puyallup Valley land. Most of what is now auburn and several commercial sites used to be his. He bought it cheap and passed it down to his kids as investment property and they only sold a little at a time here and there. My Grandmother still has a good chunk left and now she is getting ready to pass it to my mom. the city of Puyallup wants to buy it but grandma ain't dumb. She knows if she transfers it to mom and they wait out our current economic slump they will get a better price. so some of those old Klondike claims are still paying off today,,lolHi Tom, Exactly right - mining scams are just like congressmen - too many & crooked as an old creek. I have been amazed at the various scams in recent years. I was contacted by the secret service and a NJ bank rep a few years ago because of a possible transfer of 100 million. The Money was coming from Germany. The SS got involved because of the large amount of money - but it was stopped as it was to be invested in a platinum-palladium scam in Wyoming. And then just this last year, the same thing happened - some guy from Nebraska was promoting a rich platinum-palladium-diamond property in the Medicine bow Mountains of Wyoming - the German investors were ready to start sending him money ($120 million), site unseen. They contacted me for my opinion and that killed the deal. The area has no gold, platinum or palladium. And I always thought that Germans were suppose to be smart. Dan Do you find this valuable? |
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DiamondProspector |
9. RE: GREAT 1872 Diamond Hoax
Apr 5 2009, 2:27 PM EDT
"Great story. Any finding some of the salted gemstones is still even better. lol What a kick!Hi Paul, It was real exciting to find some of the old, salted gemstones. I went back again and recovered several rubies and pyrope garnets but didn't find any diamonds the second try. The old reports indicate that Arnold and Slack had at least one large diamond in their possession. Most likely they used that to show investors what they had found. It is also interesting that Arnold had worked for a diamond drilling company in San Fransico. So apparently, he either borrowed the diamonds (industrials) from the company, or made some contact in South Africa to purchase diamonds. It is a neat story and a book was written several years ago "Diamonds in the Salt". The book has some facts correct, but also has many facts wrong. Dan Do you find this valuable? |
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pvjjh |
10. RE: GREAT 1872 Diamond Hoax
Apr 6 2009, 11:01 PM EDT
"Hi Paul,Well I sure would throw back any salted gems for sure. lol You plan on going back some time? It is am interesting story for sure. We had an oil well scam here a long time ago. Never drilled, just took folks money. But if they would have drilled where they were going to, they would have hit gold! Paul Do you find this valuable? |
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TallTomSr |
11. RE: GREAT 1872 Diamond Hoax
Apr 7 2009, 12:17 AM EDT
My great grandmother helped the university of Washington compile alot of history information on those days. She had newspaper clippings of all kinds of scams that were pulled up there. She also had facts on certain Alaska "Heroes" that she said were actually crooks and murders. When some family members of these old heroes found out she was telling all they got a court order to keep the university from publishing. But she willed all her stuff to my grandma and now she is working with the university to get all the info back so she can publish it. Since the court order only specified my great grandma and the university they can't stop grandma. I hope she gets to do it cause she will sure shake a lot of reputations,,LOLTom Do you find this valuable? |
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WilliOfTheValley |
12. RE: GREAT 1872 Diamond Hoax
Apr 7 2009, 1:21 AM EDT
I'm with you Tom. GO GET 'EM GRANDMA!Tom, I'm getting antsy, I want to hunt so bad. The end of May can't get here quick enough for me. You're still going to take me, Andy, Sharon & Tim to your easy spot, right? Paul also if he can make it. I would love to go to that mine that Andy's Rock Club is going to on the 16th. I know he won't take me, I'm not 100% well. We went there on Veterans Day last year and I found a beauty that weighs close to 15lbs. When ever I get a camera I'll take a pic so everyone can see it. Take care, Willi Do you find this valuable? |
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TallTomSr |
13. RE: GREAT 1872 Diamond Hoax
Apr 7 2009, 11:42 AM EDT
"I'm with you Tom. GO GET 'EM GRANDMA!Hey Willi good to see you posting again. Yeah when your well enough I will take ya al to an easy access spot for some good agates. But do as your told and get well first. Them agates ain't going no where. Tom Do you find this valuable? |
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DiamondProspector |
14. RE: GREAT 1872 Diamond Hoax
Apr 7 2009, 12:10 PM EDT
"Well I sure would throw back any salted gems for sure. lol You plan on going back some time?Yes, I threw all those gems back (LOL). I haven't really thought about going back there. It is at the base of Diamond Peak in Colorado (one of several peaks named during the scam). I worked on one scam with the US Postal Inspector that took place in California. It was rediculous how absurd the scam was. Basically, they claimed to have found the world's largest gold deposit and later accidentially found the deposit had platinum. They were advertising the gravel (along the side of the highway) had 15 to 20 ounces per cubic yard of gold with as much platinum. They would sell blocks of gravel to investors for about $20K each and then the proposal was they were to extract all of the precious metals and give them to the investors (no one ever received a grain of metal). They had people standing in line to invest. Even during the trial, the principal scam artist would use the pay phone outside the courtroom during breaks to call other potential investors. They figured he scamed more than 20 million but the government only recovered about 5 million. Went to prison for 2 years and then got out. I'm sure he is now a wealthy man. I did a calculation on how much gold occurred in the valley based on their reports - more than 10 times the amount of gold mined in all of human history! Do you find this valuable? |
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DiamondProspector |
15. RE: GREAT 1872 Diamond Hoax
Apr 7 2009, 12:10 PM EDT
"My great grandmother helped the university of Washington compile alot of history information on those days. She had newspaper clippings of all kinds of scams that were pulled up there. She also had facts on certain Alaska "Heroes" that she said were actually crooks and murders. When some family members of these old heroes found out she was telling all they got a court order to keep the university from publishing. But she willed all her stuff to my grandma and now she is working with the university to get all the info back so she can publish it. Since the court order only specified my great grandma and the university they can't stop grandma. I hope she gets to do it cause she will sure shake a lot of reputations,,LOLHi Tom, Should make some good reading. Do you find this valuable? |
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pvjjh |
16. RE: GREAT 1872 Diamond Hoax
Apr 7 2009, 12:13 PM EDT
Hey Willi, glad to see you back. I hear things are progessing and you are getting better all the time. Still sore though, bummer, but a little discomfort now will have great dividends in the future.Tom, get your grandmother working on that book. It would be a fun read for sure. At least my family was honest and hard working farmers and not them crooked types. At least I think! lol It will be cool to read it. Paul Do you find this valuable? |
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pvjjh |
17. RE: GREAT 1872 Diamond Hoax
Apr 7 2009, 12:25 PM EDT
"Yes, I threw all those gems back (LOL). I haven't really thought about going back there. It is at the base of Diamond Peak in Colorado (one of several peaks named during the scam).Well since I found out you throw them salted gems back, just let me know when you go. It seems you have an excellent eye for that gemmy stuff. When you find some of them ol’ skanky salted ones, just don't throw them too far away, I can't walk well you know. lol Of course you could always throw them towards me. ;-) Man what a scam artist and how bold could one get. Calling investors on breaks during the trail it truly amazing. Talk about gall! Put away for only 2 years and like you said, probably walked out a multimillionaire. Da Bum!! Man that is a lot of fake gold! Great story, but he should have gotten more time for the crimes. Paul Do you find this valuable? |
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DiamondProspector |
18. RE: GREAT 1872 Diamond Hoax
Apr 7 2009, 1:34 PM EDT
"Well since I found out you throw them salted gems back, just let me know when you go. It seems you have an excellent eye for that gemmy stuff. When you find some of them ol’ skanky salted ones, just don't throw them too far away, I can't walk well you know. lol Of course you could always throw them towards me. ;-)Hi Paul, You're right - he should have spent more time in jail. But that is just one scam in many. Last year I had a German investing group contact me about transferring $150 million to a scam artist in Nebraska. They were ready to send the money for a platinum-palladium-gold-diamond scam in the western Medicine Bow Mountains of Wyoming. All I had to do was say 'yes' there was something there, and they would have made him rich. But I was familiar with the area and knew it was a favorite place for mining scams and also knew that what he was reporting was absurd. What amazes me more than these scam artists, are investors willing to send that kind of money for a property sight unseen. These Germans had never met me and apparently had never met the guy in Nebraska. I suspect they had more money than brains. These scams are so entertaining that I decided to write a book about them - it is in the works and will be titled Mountains of Gold. I'll let you know when it is done. Hopefully will be finished by the end of the year. Dan Do you find this valuable? |
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pvjjh |
19. RE: GREAT 1872 Diamond Hoax
Apr 7 2009, 2:01 PM EDT
"Hi Paul,Yes, let us know. That would be an interesting read. I think you are right, some people just have more money than brains. Now if'n I could figure out how to make money and find my brain, I would be set. lol Paul Do you find this valuable? |