5 Reasons Why High Yield Investors Need Gold

Gold last traded at $1,877 an ounce. Silver at $26.11 an ounce.

NEWS SUMMARY: Precious metal prices rose Tuesday on safe-haven buying and a weaker dollar. U.S. stocks traded mostly lower as traders weighed the possibility of even more fiscal stimulus being approved by Congress.

SEEKING ALPHA-"Gold has millennia of history and intrinsic qualities that make it an excellent store of wealth in the midst of economic uncertainty and runaway spending and money printing.

The market value of gold has numerous fundamental tailwinds, making it arguably one of the most attractive investments right now on a risk-adjusted basis. In particular, it makes for an essential portion of a high yield portfolio these days for the following 5 reasons:

1) Economic conditions increase safe haven value
2) Inflation is coming
3) The Gold-to-M1 ratio favors gold
4) The Gold-to-S&P 500 ratio favors gold
5) Gold diversifies High Yield well....

As long as the future is inflationary (which history and current trends strongly point to) and contains growth in it (which the history of the United States and the momentum of the advancement of knowledge and technology favor), the combination of the two in a portfolio should provide very attractive risk-adjusted returns.

With the stock market's detachment from the state and risks of the economy, Ray Dalio's timeless wisdom should motivate us all, now more than ever, to maintain holdings in what history has proven time and again to be true money: gold."