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Guerrero Gold Belt Offers Intrigue to Gold Investors

Guerrero Gold Belt Offers Intrigue to Gold Investors

October 30, 2012166 view(s)

For investors who choose to invest in gold, there are a lot of factors which come into play that determine its value and help make it one of the most interesting hard assets to own. Top gold companies are always looking for new deposits of gold and recently, according to an article in Business Insider, some exciting information has come out regarding Mexico's Guerrero Gold Belt, a place where gold and silver mineralization has geologists fascinated. The news should interest those buying gold today because it comes from Merrill McHenry, an experienced analyst who advocates a deeper understanding of geology and its benefits for those looking to invest. By understanding places such as the Guerrero Gold Belt and the role it plays in gold production today, investors have better insight into the markets and can make more informed choices.

Those who invest in gold companies are generally advised to do their homework so they can learn about the types of situations McHenry talks about. Top gold companies expend a great deal of money on feasibility studies to determine whether or not mining for gold or silver in certain areas will prove lucrative. Long before anyone can buy gold which was mined in a specific area, it must be pulled up from the Earth, but since a lot of expensive scientific work and logistics are involved in this process, it takes a while. One company already has a project in the Guerrero Gold Belt called the Morelos project. The open pit mine is very high grade, among the highest on the planet. The Carlin Trend, a comparable feature located in the U.S. state of Nevada, is far trickier to mine because locating ore bodies is not easy in that location.

McHenry said during an interview, "Mexico also had the fastest growth of any gold-producing country last year, and the Guerrero had a lot to do with both accomplishments."

Not only is Mexico noted for its gold production, being one of the top 10 biggest producers of gold in the world, but in the central part of the nation a great deal of silver is also found. Combined, all of these rich areas of precious metal mineral deposits make Mexico an exciting place for geologists and investors alike. Security there however, does remain a problem that companies are finding ways to deal with. Community building has to be a big part of a corporations' work if it wants to thrive in a nation where the culture is often very focused on local issues.

McHenry has said he believes that companies mining in Mexico today have a lot of opportunities they will be tapping in the coming months and years. A great deal is still being learned about opportunities that lie within the storied Guerrero Gold Belt and it looks as if it can help raise the world's supply of raw gold in the future.

Investing in stocks of gold companies isn't the right choice for all investors, but for those who prefer it, there are many companies worth considering. Other investors will prefer to focus on holding physical gold or silver. The bottom line is investors should choose what works best for them.

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