(Kitco News) - Investment capital is flowing into gold stocks and Frank Holmes, CEO of U.S. Investors, said that this may be due to peak gold.
"What we're witnessing now is [money] going into gold stock ETFs," Holmes told Kitco News.
Holmes said that there is currently no breakthrough technology like there was for fracking in the mining industry, so gold production is likely to continue to plateau and eventually decline, according to the theory of peak gold.
He added that investors are likely to see gold stocks move up as more capital continues to flow in, which is usually a precursor to the bullion rallying.
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.