Built in 1897 in Leith, Scotland by Ramage & Ferguson for J. M. or A. R. & J. M. Sladen, and became owned by F. W. Sykes in 1898; her first and second owners were all from England.

In 1901, Gunilda was chartered by a member of the New York Yacht Club, sailing across the Atlantic Ocean with a complement of 25 crewmen.

Under Harkness' ownership, Gunilda visited many parts of the world, including the Caribbean, and beginning in 1910, the Great Lakes.

In the summer of 1911, Gunilda's owner, William L. Harkness, his family and friends were on an extended tour of northern Lake Superior.

As she was about 5 miles (8.0 km) away from Rossport, Gunilda ran hard aground onto McGarvey Shoal on the north side of Copper Island.

Harkness stayed behind to supervise the salvage, hiring the tug James Whalen and a barge to tow Gunilda off the shoal.

[1][2][3] She was designed by Joseph Edwin Wilkins, a naval architect who worked for Cox & King of Pall Mall, London, England.

[14] Under the ownership of Harkness, Gunilda visited several parts of the world, making multiple trips around the Atlantic Ocean and the Caribbean.

In August 1911, the people on board had made plans to head into Lake Nipigon to fish for speckled trout.

[15][16][17][18][19] When Gunilda docked in Coldwell Harbor, Ontario, Harkness sought a pilot to guide them to Rossport and then into Nipigon Bay.

Harry Legault offered to pilot Gunilda to Rossport for $25 plus a train fare back to Jackfish Bay.

Gunilda's captain, Alexander Corkum, and his crew thought the offer was reasonable, but Harkness once again declined.

As the US charts did not indicate that there were any shoals on their intended course, Harkness decided to proceed without a pilot with accurate knowledge of the region.

As she was about 5 miles (8.0 km) off Rossport, Gunilda, travelling at full speed, ran hard aground on McGarvey Shoal (known locally as Old Man's Hump).

[16][17][19][21] After the grounding, Harkness and some his family and friends boarded one of Gunilda's motor launches and travelled to Rossport, catching a Canadian Pacific Railway train to Port Arthur, Ontario, where Harkness made arrangements for the Canadian Towing & Wrecking Company's tug James Whalen to be dispatched to free Gunilda.

[1][3][7][12][16][22] The captain of James Whalen advised Harkness to hire a second tug and barge to properly stabilize Gunilda.

Wrecking master J. Wolvin[23] of James Whalen decided to pull solely to starboard, as it was impossible to maneuver her stern to the port.

Her wreck is very intact, with everything that was on her when she sank still in place, including her entire superstructure, compass binnacle, and both of her masts.

[32][33] On June 10 2024, Viking Polaris conducted archaeological and tourism dives on the famous “Gunilda” shipwreck with their manned submersibles CS7.43 “Ringo” and CS7.44 “George”.

In August 1970 Broennle and his dive partner, 23-year old Charles "King" Hague, dove Gunilda's wreck.