The Barrick-Randgold merger, one of the largest mergers ever in the mining industry, is indicative of an important turning point for gold, said Frank Holmes, CEO of U.S. Global Investors.
"Usually these things happen at the bottom of the cycle, not the top, and that's really interesting because they start to drive economies of scale to get growth," Holmes told Kitco News.
Holmes added that many in the industry agree that we have reached peak gold, so investors and miners can expect to see supply shrinking.
(Editor's Pick. This item originally ran on Oct. 5.)
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.