How Black Friday began: The 1869 gold crash that gave rise to a global shopping tradition
Black Friday originated from a 1869 gold scam that caused the US market to crash. Over time, the term shifted from chaos to the huge shopping event.
Black Friday has become an important part of the shopping calendar, with shops, supermarkets, and companies trying to entice customers with huge discounts. While the phenomenon started in the United States, it has now been picked up elsewhere and is making a mark around the globe. But what, exactly, is ‘Black Friday’ all about? What is its origin story, and how did it turn into a day of discounts for buyers?
Black Friday history
As per The Word Magazine, the whole concept started with a massive scam in the 19th-century USA. The story begins with a massive crash in the US economy, which happened on September 24, 1869. This was due to the illegal acts by two investors who decided to use nefarious means to make profits.
The US economy at the time was going through a rough phase. The Civil War had already caused the economy to incur a debt of $2.8 million. This had led to the introduction of paper currency and the withdrawal of gold and silver coins.
The paper currency, known as ‘Greenbacks’, had its critics. The then-President, Ulysses S Grant (in office from 1869 to 1877) decided to bring gold back in a big way by selling the stored quantities in the treasury.
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This is where the scam begins. Two investors bribed officials within the government to find out in advance when gold would be sold by the government. In this way, they were able to hoard a lot of gold and push its price up. However, their devious plan was finally discovered, and the government busted the conspirators on one ‘Black Friday’ in 1869.
This led to a sudden crash in the gold prices and caused huge crowds in markets seeking to buy the prized metal. This is where the ‘Black Friday’ phenomenon originates. Of course, the use of this as a marketing trick happened in the next century.
According to The Word Magazine, the term ‘Black Friday’ was first used in relation to shopping in the 1950s to describe the absence of a large number of employees after Thanksgiving. Some years down the line, the Philadelphia Police used the term to describe the huge rush in markets for pre-Christmas shopping.
In the 1980s, it became the time when shopkeepers announced their sales and transitioned from losses (marked in red) to profits (marked in black). The story had come full circle thus.
Black Friday sales
According to Forbes, several companies have started to offer discounts even before the arrival of ‘Black Friday’. Companies like Lululemon, Omnilux, Foot Locker, and Bloomingdale’s are offering early discounts ranging from 25%-60%.
Amazon is offering discounts of up to 45% on various products. Walmart has gotten into the act by offering discounts on Apple AirPods to Lego toys.
The discounts are not limited to any category of items. Gadgets, home appliances, and household items are all going to be available for sale. This is an opportunity for retailers to increase their sales substantially, and they are not looking to miss this opportunity.
FAQs
When did the market rush for gold take place that gave rise to the concept of ‘Black Friday’?
The original ‘Black Friday’ saw a massive outpouring of people to buy gold in 1869.
Who was the President of the United States who decided to sell gold from the treasury?
Ulysses S. Grant was the President of the USA from 1869 to 1877 and took this decision.
When is Black Friday this year?
On November 28.
