FSJG Index™ Weekly Review
by Frank Barbera
October 7, 2005

The FS Junior Gold Index ended the week at 171.40 exactly, unchanged from last weeks' close of 171.40. At the close on Friday, the FSJG Index remained above both the 50-day moving average (157.19) and 200-day moving average (155.70).

Overall, the smaller gold stocks mimicked the sideways consolidation now underway in the leading majors. On a sector basis, the Junior Producer Index finished at 187.32, up from 186.05 last week, while the Junior Development Index finished at 505.78, down from 511.93. The Junior Exploration Index ended at 72.43, and that was up a bit from last week's close of 71.98.

On a relative strength basis, while the Small Cap Golds have improved a bit, there is still no clear-cut turn to out-performance present. The initial stages of a major gold rally tend to have large and mid-cap names. As the rally progresses, the normal pattern would be for more and more stock to participate in the advance, which would tend to favor smaller cap companies as represented by the FSJG Index. It is encouraging to see these stocks begin to keep with the big caps and I will be watching the R/S Ratio for additional signs of a major trend reversal.

Financial Sense Junior Gold Index™
Exploration Companies
3-Year Chart

*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.