Financial Sense Junior Gold Mining Index Review by Frank Barbera 07/06/2008

General Comments as of July 4th

It was a volatile week with stock prices remaining under broad selling pressure. For the S&P 500, July picked up where June left off, with the S&P sliding 1.17%. The downside volatility in equities put pressure on mining stocks, even though metal prices were relatively firm. On the week, spot Gold closed with a gain of $6.20 per ounce, ending at $933.35, up .67% from $927.15. Silver also rose, turning in a strong performance to end at a price of $18.00; Silver finished with a gain of .71, up from $17.49 to end with a percentage gain of 4.05%. Elsewhere, platinum prices were tepid, losing $34 per ounce to finish at $2022.00, down from $2056.00 for a loss of 1.65%. Mining stocks ended lower, the XAU finishing with a loss of 5.52 index points or 2.84%, while the GDX Gold ETF ended down 2.53%, and the HUI Amex Gold Bugs Index ended down 3.00%.

For the Financial Sense Junior Gold Mining Index [FSJG], the week yielded a small loss, with the 40 stocks finishing at 227.35, down 1.62 index points from 228.97 the prior week. On Friday, the FSJG 40 ended just above the 50 day average at 226.40, but well below the 200 day average at 264.50.

Financial Sense Junior Gold Index™

Junior Mining Index

Above: FS Junior Gold Mining Index [FSJG]

Financial Sense Junior Gold Index™

Junior Producer Index

Producing stocks were also lower, giving back a much larger percentage of last weeks advance. For the week, the FSO Junior Producer Index ended at 273.1, down 10.79 index points from last weeks close of 283.97. For the FSO Junior Producer Index, the 50 day average ended at 258.60, with the 200 day average ending at 277.65.

Financial Sense Junior Gold Index™

Junior Development and Exploration Index (non-producers)

On the non-producing side, the D&E Index actually held up well, continuing a non-committal trading pattern with the index ending at 213.59, up .70 from the prior week's close of 212.89. For the D&E Index, the 50 day average ended at 217.50, with the 200 day average ending at 255.71

Financial Sense Junior Gold Index™

Junior Development Index

Breaking performance down even further, the Development stage index ended at 449.96, down 5.07 index points from the prior week's close of 455.03, with the 50 day average ending at 460.03, and the 200 day average at 277.65.

Financial Sense Junior Gold Index™

Junior Exploration Index

Exploration stocks actually gained ground, the FSO Junior Exploration Index finishing at 134.81, up 2.69 index points from the prior week's close of 132.17. For the Exploration Stocks, the 50 day average ended at 136.65, with the 200 day average ending at 179.19.

Financial Sense Junior Gold Index™

Junior Gold Index with Daily A/D Line

Financial Sense Junior Gold Index™
Relative Strength Ratio of Jrs vs. XAU

On the week, Juniors saw their Relative Strength Ratio stabilize along with the Daily Advance Decline Line, both of which have been declining now for some time.

That’s all for now,
Frank

*Please note that the individual companies in this index are proprietary and will not be disclosed due to compliance and regulatory issues resulting from the relationship of FinancialSense.com, Puplava Financial Services, Inc., Registered Investment Advisor and Puplava Securities, Inc. Member Firm FINRA/SIPC.