FSJG Index™ Weekly Review
by Frank Barbera
April 7, 2006

General Comments

It was another winning week for both Gold and Gold Stocks, as Gold advanced for the fourth week in a row to close at $593.20, up $8.20 from the previous week's close of $585.00 Of course, all of the big headlines hit on Thursday when Gold briefly topped the psychologically-important level of $600.00, prior to easing lower on Friday’s employment report.

In addition to a fourth week of gains in Bullion, leading mining indices also pressed higher making it “four-for-four” to the upside. For the XAU, the week ended with a gain of 3.86 index points. The XAU finished at 145.51, up from 141.65 last week, a gain of 2.72%. For the HUI Amex Gold Bugs Index, the week saw a new 52-week closing high at 354.52 on Thursday, with the index finishing Friday at 345.33. On the week, the HUI ended with a gain of 9.31 index points or 2.76%.

Financial Sense Junior Gold Index

Yet, as has been the case in the last few weeks, the real superstars of the precious metals arena were the Juniors with the small cap golds tacking on another 18.61 index points on the Financial Sense Junior Gold Index (FSJG), which closed at 284.54. On the week, the FSJG Index gained 6.99%, up from last week's close of 265.93. On Friday, the 50-day average for the FSJG Index ended at 586.70, with the 200-day average at 565.00.

While the major gold indices pressed higher, weakness in the Junior Development sector held back the rampaging FS Junior Gold Index, which has been on a tear throughout 2006. On the week, the FSO Index ended at 283.20, down 1.34 index points or .004% from last week's close of 284.54.

Within the FS junior sectors, the Junior Producers gained 2.32% in a move that was consistent with the gains seen on both the XAU and HUI. On Friday, the Junior Producers closed at 302.70, up 6.89 index points from last week's reading of 295.81. Yet, there was trouble in the Development sector, which has been ‘on fire’ for much of the last five months.

On Friday, the FS Junior Development Index ended at 764.95, down 15.74 index points or 2.01% from last week's reading of 780.79. Finally, the Junior Exploration stocks also ended lower at a reading of 141.06, down 4.05 index points from 145.11 seen last Friday for a percentage loss of 2.80%.

On Friday, the 50-day average for the FS Junior Gold Index ended at 252.69, with the 200-day at 186.40. Within the list of Sub-Indices, the 50-day average for the Junior Producer Index closed at 262.88 with the 200 day at 203.85. For the Development Stocks, the 50-day average ended at 714.04, with the 200-day average at 531.84.

For the FS Junior Exploration Index, the 50-day average ended at 124.00 with the 200-day average at 82.80.

Finally, the Summation Index for Junior Golds ended at 1368.19 -- just above its signal line at 1300. However, over the last few weeks, the higher price highs in the Junior Indices have not been confirmed by a number of breadth, momentum and volume-based gauges, suggesting that the late turn down in the current week could be the beginning of a larger corrective pattern, which could last a number of weeks as the extended run up since October has come a very long way, in a very short period of time.

*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.