The franchise was known as the Denver Rockets when it entered the American Basketball Association in 1967. The same year, an NBA expansion franchise named the San Diego (now Houston) Rockets began play.
After seven seasons, and with entry into the NBA looming, Denver team officials renamed their club. Nuggets refers to the 19th century mining boom in Colorado, when people rushed to the area, hoping to make their fortunes by panning for gold and silver nuggets.
It also refers to a team from Denver that played one season (1949-50) in the NBA.