FSJG Index™ Weekly Review
by Frank Barbera
October 21, 2005

The Financial Sense Junior Gold Index declined on the week, ending at a reading of 156.35 down from last week's close of 162.84, for a decline of 3.98% or 6.49 index points. The decline in small cap gold was more substantial than the 1.88% decline in large Gold Stocks as represented by the XAU. That said, normally smaller-priced shares tend to lag the action of their large cap brethren by 1 trading day. On Friday the XAU pared its losses, gaining nearly 3% to end the week down just 1.88%. By that token, we could well see some recovery rebound in small cap names early next week.

At week's end, the FS Junior Gold Index was still above its longer term 200-day moving average, which ended at 155.58, but just below the 50-day average at 159.08. Turning to the sub-indices, the FS Junior Producer Index finished at 167.75 down 8.07 points or 4.58% from last week's close of 175.82.

With regard to Development Companies, the FS Junior Development Index ended at 465.91, down 2.33% from last week's close of 477.057.

Finally, the FS Junior Exploration Index ended at 67.36, down 3.84 index points from last week's close of 71.20, for a total weekly decline of 5.39%.

All in all, it was a difficult week for all Natural Resource related stocks as rumors swirled that a large hedge fund was offloading natural resources-related positions into the futures expiration, which took place on Friday. On a positive note, many resources stocks began to stabilize on Friday and ended the week on a firm note with short-term charts showing pronounced bullish reversal patterns. Ideally, a fast rebound early next week could undo whatever technical damage was sustained during the selling of the last few days.

*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.