FSJG Index™ Weekly Review
by Frank Barbera
December 17, 2005

General Comments

Looking back, it was a topsy-turvy week for investors in Precious Metals Land as Gold tumbled from $528.90 to $506.30 for a loss of $22.60 or 4.27% on the week. Of course, the week started out on a positive note with Gold quickly advancing above $540 on Monday, prior to suffering sharp declines on Wednesday and Thursday of this week.

For the Gold Stocks, a serious downside reversal attended gold’s mid-week slump with the HUI moving from a Monday high of 271.74 to a Wednesday low of 251.60, a quick intra-day downside reversal tallying 8%. On Thursday and Friday, Gold Stocks rallied back to recover about 1/3 of the prior declines losses, on the heels of short-term oversold readings seen near the Wednesday low. By week's end, the major Gold Indices were virtually unchanged, with the XAU ending at 122.32, down .60 from 122.92 last week, and the HUI ending at 259.79, down 1.44 from 261.23 last week.

AMEX Gold Bugs Index

For the HUI, the 9-week RSI ended the week at a still-overbought reading of +69.28 with the RSI failing to move to higher highs along with prices over the last few weeks. From here, any downside close below 246.30, the low of the week of December 9^th, would confirm a downside, bearish swing reversal in the leading gold stocks suggesting that a serious market peak had been seen. A medium-term retrenchment down toward to 210 to 220 on the HUI appears reasonable in coming weeks.

Financial Sense Junior Gold Index

Looking at the Financial Sense Junior Gold Index, we saw small cap mining shares mirroring the neutral trading pattern seen in majors, with the FSJG Index finishing at 182.75, up only slightly from the prior week's close of 182.45. At week’s end, the FS Junior Gold Index ended above its 50-day average at 166.07 and the 200-day average at 156.32. Within the Junior Gold Index, the Junior Producers ended at 203.44, down from 203.45, ending virtually unchanged for the week. Junior Development Stocks ended at 569.45, up just marginally from last week's close of 569.01, while Exploration Stocks also edged higher ending at 67.53, up from 67.03

Financial Sense Junior Gold Index™
Producer Companies

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.