The outbreak of war will cause social unrest, and to a certain extent, people will lose confidence in their own currencies. As a hard currency in the world, people will increase their purchases of gold in order to preserve the value and promote the rise of gold, thus stimulating the rise of the gold industry in the stock market.
War is consumptive and destructive. During the war, a large amount of munitions, medicines and energy will be invested, and a large number of factories will be destroyed, which will lead to the imbalance between supply and demand of these products and indirectly lead to the rise of military industry, medical industry and energy industry.
In addition, some consumer goods, clothing and even textiles may also get large orders for military materials, thus pushing up individual stocks.
Gold stock is a plate classification in the stock market and an extension product of gold investment. Gold stocks are listed or unlisted stocks issued by gold companies to the public, so they can also be called gold mining company stocks.
Because buying and selling gold stocks is not only investing in gold mining companies, but also indirectly investing in gold, this investment behavior is more complicated than simply buying and selling gold or buying and selling stocks. Investors should not only pay attention to the operating conditions of gold mining companies, but also analyze the price trend of the gold market.
Among the gold stocks, there is also an investment behavior called penny gold stocks. Investors buy and sell stocks issued by joint-stock companies. These joint-stock companies have bought a large number of riverbeds or mountains that may contain placer gold, but they have not yet developed and confirmed them. Such stocks are called Penney stocks.
In fact, these stocks only represent those companies that only own part of the land that can be explored or mined. That is to say, investing in Penny stocks means investing in the future of unproven gold mining companies that have no production records in the past. Investing in penny gold stocks is risky. Of course, if it is confirmed that the company has a gold mine underground, its income will be amazing. There is one such gold stock in the domestic A-share market: Ronghua Industry. The stock used to belong to the agricultural sector, but its practical significance in the A-share market has become a gold stock.