In his twenties, Cecil Rhodes was just another ambitious, yet somewhat lost, British entrepreneur in the late-19th century looking to capitalize on the newly discovered mineral wealth of the colonies of South Africa. Rhodes was a greedy man, and his appetite for influence and power was insatiable, only growing with age. He was a staunch imperialist looking to control South Africa as if it were just one big chess board – sneakily manipulating those in leadership roles to get what he wanted, and the hell with everyone else.
In his twenties, Cecil Rhodes was just another ambitious, yet somewhat lost, British entrepreneur in the late-19th century looking to capitalize on the newly discovered mineral wealth of the colonies of South Africa. Rhodes was a greedy man, and his appetite for influence and power was insatiable, only growing with age. He was a staunch imperialist looking to control South Africa as if it were just one big chess board – sneakily manipulating those in leadership roles to get what he wanted, and the hell with everyone else. To put it mildly, Cecil Rhodes wasn’t a good man… but he built a mining empire second only to King Solomon’s.
The Witwatersrand Discovery
When the outcrop discovery on the Witwatersrand was made in South Africa, it was the largest gold deposit in the world. And this historic discovery created a staking rush of epic proportions, led by Cecil Rhodes who immediately began plotting his master plan to capitalize and control the region.
Despite his limited knowledge of mining and geology, Rhodes quickly became a mining prospector and gobbled up as much prospective land on the Witwatersrand as he could. At first, this strategy didn’t pay the dividends he had hoped; and like so many get rich quick ideas, he almost lost everything… but then a lightbulb went off in Rhodes. What if he could sell shares in these mining claims, essentially spreading the risk around, but still maintain significant control in case he found an elephant?
Cecil Rhodes: World’s First Mining Stock Promoter
With all the hype and interest surrounding diamond and gold prospecting among the general public in South Africa and back in Britain, Rhodes quickly evolved into the world’s first mining stock promoter. He began promoting to the public their chance of striking it rich through buying shares in his mining claims. Public frenzy got so intense that people would continue trading shares of his companies on the streets outside the stock exchange long after it had closed for the day.
Many of the claims Rhodes sold shares in ended up being duds; but, like so many mining stock promoters who came after him and found their way onto the greasy sidewalks of Howe Street, he kept throwing mud against a wall until something stuck. Eventually, Rhodes struck it big after making a monumental diamond discovery which branded him the cofounder of De Beers. Shortly after the breakout of De Beers, Rhodes established a virtual monopoly over the diamond market, which ended up being responsible, in large part, for him becoming one of the richest men in the world. His wealth propelled him into Britain’s political scene, and Rhodes’ lust for power and control inevitably was, at least in part, responsible for the start of the Boer Wars.
The drama, deception and violence surrounding the world’s first mining stock promoter, Cecil Rhodes, is incredibly laid out in Martin Meredith’s book Diamonds, Gold, and War. I thoroughly enjoyed the read and, given all of our interest in the junior mining space, think you will too.
Click here to purchase a copy.
In touch,
Aaron
