Originally called Green Station, Goldsmith was surveyed in 1876. The original landowners were John Wolford, J.A. Teter, McDonald Teter, and Hiram Fulkerson. The town's name was changed to Goldsmith after the founders discovered another town in Indiana named Green Station. It was named after a contractor who helped build the LaFayette, Muncie and Bloomington Railroad. The first home was built in the village, on the west side, by Solomon Wolford. There was also a blacksmith and a shop.[3] A Methodist Episcopal Church was organized in Goldsmith in 1881. A church was built for the congregation, costing $1,000 to build.[4]
A post office was established at Goldsmith in 1876, and remained in operation until it was discontinued in 2001.[5]
As of 1914, the town was known for its high school, which was the most contemporary in the state at the time. The town used to be home to the "old settlers' meeting," in which thousands of early Indiana settlers would unite in Goldsmith to celebrate.[3]
