A nugget is a sizable piece of gold found in its natural state, raw and unprocessed.

Gold deposits are often found around watercourses, embedded among the loose layers of sediment. These are known as ‘placer gold’; prospecting (usually by ‘panning’) near rivers and streams is thus known as ‘placer mining’. Where gold is ingrained in the rock strata itself, this is known as ‘hardrock gold’ or ‘lode gold’; drilling is often required. Obviously the techniques employed by commercial gold miners are much more sophisticated than those used in recreational prospecting.

Recreational gold prospecting is a long-established pastime and hobby in Australia, New Zealand, South Africa, Canada and the US. For many in Australia, it is recognised as a tax-free hobby.

Nugget purity may vary, but usually lies between 20k and 22k (83-92%). Australia and especially Victoria is well known for its fine gold, which is of higher quality than other parts of the world. Thus, the Victorian Gold Rush of the mid-nineteenth century trebled the Australian population and heralded an unprecedented period of wealth and prosperity for decades to come.

The largest gold nugget ever found, worldwide, was the ‘Welcome Stranger’ weighing in at 71kg! It was found at Moliagul in Victoria, which is 60km west of Bendigo in 1869 by John Deason and Richard Oates. Recently, in August, 2012, another big nugget was unearthed in Victoria, near Ballarat; at 3.66kg, ‘Destiny’ is said to be worth $500,000 AUD!

If you’re looking at getting into gold prospecting, you’d do well to read up on what’s involved. There are also a number of online forums you can visit; these have a wealth of information and are a great way to meet others who already know what they’re doing. Additionally, good maps are required and you’ll probably also need to obtain a Miner’s Right from the State (or where it is a territory, the Federal) government. But before you commit too much to the hobby, why not take a gold prospecting tour with family or friends? Some of the best experiences can be found in Bendigo and Western Australia.