ROB MAGAZINE: Why RBC’s Chris Beer is betting on gold – by Shirley Won (Globe and Mail – September 28, 2020)

Over his career, Chris Beer has watched the price of gold soar—albeit in fits and starts. When he worked as a field geologist searching for gold in Newfoundland in the late 1980s, bullion fluctuated around US$400 an ounce.

In 2003, he became portfolio manager of the RBC Global Precious Metals Fund, which he now co-runs with Brahm Spilfogel and Jeffrey Schok, and has $1.16 billion in assets. Gold took off and peaked near US$1,920 an ounce in 2011, but then plunged and only surpassed that record this past August.

The equity fund has outpaced the S&P 500 Total Return Index in Canadian dollars over the past 15 years. We asked Beer, 55, if investors should consider gold stocks for dividend income and why he likes Barrick Gold Corp.

Why has gold been on a winning streak?

A weakening U.S. dollar, lower interest rates and inflation fears are fuelling the price of gold. Massive amounts of fiscal and monetary stimulus to combat the COVID-19 pandemic and support the global economy may lead to inflation pressures in the future. Inflation-adjusted interest rates on the 10-year U.S. Treasury bond are negative.

For the reset of this interview:

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