Between 1883 and 1906 Tierra del Fuego experienced a gold rush attracting many Chileans, Argentines and Europeans to the archipelago, including many Dalmatians. The gold rush led to the formation of the first towns in the archipelago and fueled economic growth in Punta Arenas. After the gold rush was over, most gold miners left the archipelago, while the remaining settlers engaged in sheep farming and fishing. The rush made a major contribution to the genocide of the indigenous Selk'nam people.

Punta Arenas is the capital city of Chile's southernmost region, Magallanes and Antarctica Chilena. Although officially renamed as Magallanes in 1927, the name was changed back to Punta Arenas in 1938. The city is the largest south of the 46th parallel south and the most populous southernmost city in Chile and the Americas. Due to its location, it is also the coldest coastal city with more than 100,000 inhabitants in Latin America. Punta Arenas is one of the world's most southerly ports and serves as an Antarctic gateway city.