Jeffery Schok, senior portfolio manager North American and Global Equities RBC Global Asset Management Inc.Patricia Daszkowski/The Globe and Mail
Jeffrey Schok’s investing passion began when he ran a mock stock portfolio in high school. He finally got to play the market for real after opening an online brokerage account while studying engineering at McGill University.
One early purchase was a junior miner in Bolivia, a move influenced by advertising. Its stock doubled but sank to zero. It was a valuable lesson: Doing due diligence and understanding risks are key to investing.
After earning an MBA and doing stints as a mining equity associate during the 2000s commodity boom, he joined RBC’s fund arm in 2012. He now oversees the $1.7-billion RBC Global Precious Metals Fund, which has outpaced the S&P/TSX Global Gold Total Return Index since he began managing it in 2016. We asked Schok why he’s bullish on gold and gold equities despite recent pullbacks, and why he likes K92 Mining.
What’s your investment strategy?
We look for miners with high-quality assets in relatively stable jurisdictions that have strong management teams. Valuation is key, so we try to buy assets mispriced by the market. We also do scenario analysis to identify and take advantage of opportunities. Our holdings range from explorers to senior miners, but we now favour mid-tier producers. They have better growth potential, and could get acquired at a premium price by a mining giant or merge with a mid-tier player. We also favour producers more than royalty companies, which tend to lag when commodity prices rise rapidly.
Gold hit a record high of nearly US$5,600 per ounce in January before pulling back. What’s your outlook given that some financial institutions have a US$6,000-target?
Gold had an exceptional rally in 2025 but has struggled this year amid the Iran War. Its price could be range-bound shorter term, but over the medium to long term, we’re constructive on gold. We don’t have a price forecast, but I don’t think a US$6,000-target is unrealistic in 2027. The themes contributing to gold’s surge are intact. I call them the six Ds: diversification (from the U.S. dollar by central banks), de-dollarization, de-globalization, debasement, debt and Donald Trump. We are also bullish on gold equities longer term, as most companies generate significant free cash flow. Unlike the past, they are exercising capital discipline and are focused on increasing shareholder returns.
What’s the risk to the gold price?
Higher real U.S. interest rates or a strengthening U.S. dollar. From 2022 to 2024, rates rose with a strong dollar, but gold still did well because of strong purchases by central banks. Their buying momentum slowed earlier this year, but I believe it’s temporary. Despite being considered a safe-haven asset, gold is not immune to broad market sell-offs. Because it’s so liquid, investors will sell gold to cover losses in other sectors or to cover margin calls.
Agnico Eagle Mines, Kinross Gold and Barrick Mining are top fund holdings. Why is K92 Mining there, too?
K92 is a mid-tier, low-cost gold and copper producer at its Kainantu mine in Papua New Guinea. It has a spectacular, seven-million-ounce ore body, with further exploration potential on its land. Its stock has been a stellar performer in recent years, but we think it’s undervalued versus its peers. We expect a re-rating as it nears an important free-cash-flow inflection because of its mine expansion. It’s transforming into a tier-one, high-quality asset. Its location in Papua New Guinea is a consideration, but management has strong relationships with local communities and the government.
Silver has retreated after reaching a peak near US$121 an ounce in January. What’s your outlook?
Silver often rallies with gold but is more volatile. Catalysts for its rapid rise in 2025 included a multiyear supply deficit and its addition to the U.S. list of critical minerals. But silver faces more risk because industrial demand, from solar panels to EVs, makes up two-thirds of consumption. High prices could encourage replacing silver with a cheaper metal. It could normalize below US$80 an ounce, but if gold rises sharply, it’s hard to see silver lag. Our silver names include Wheaton Precious Metals, Pan American Silver and Skeena Resources.