FSJG Index™ Weekly Review
by Frank Barbera
August 20, 2006

General Comments

It was a fascinating week in the Precious Metals arena where prices were under pressure all week from a declining Energy complex and a raft of weak economic data. A fickle market of late, Gold seems to caught between concerns that a slowing economy could impact physical demand and the possibility on the bright side that a slower economy could undercut the US Dollar, which held firm on the week.

On Friday a sustained rally in Crude Oil seemed to give gold a lift with the ‘King of All Monies’ rallying off key support at $620. Nevertheless, the week did see prices slip, losing a total of $18.30 an ounce or 2.84% to close at $624.00 down from last week's close of $642.30.

For Gold it was the worst loss since the Midas metal plunged $44.80 or 6.72% the week ended June 21^st. Not surprisingly, the Gold Stocks did not have an easy time of it with the XAU slipping 1.48 index points or 1.04% on the week and the HUI Amex Gold Bugs Index dipping by 4.25 index points to close at 326.81, a loss of 1.28%. Nevertheless, the downside action in the mining stocks was largely contained with good late-day damage control buying mitigating the losses.

Financial Sense Junior Gold Index

With the XAU and HUI both losing ground, it was no surprise to see the Financial Sense Junior Gold Mining Index (FSJG) also slipping. For the week, the FSJG Index ended at 247.42, down 3.98 index points from last week's close of 251.80 for a loss of 1.58%. On Friday the FSJG Mining Index finished above the 50-day average at 242.59 and well above the 200-day average at 233.69.

Among the FSJG Sub-Indices, it was the Junior Producer Index that turned in the most buoyant performance losing only .005% for the week to end at 272.13, down slightly from last weeks' close of 273.61. On Friday, the Junior Producer Index ended above the 50-day average at 269.65 and the 200-day average at 255.26.

Within the realm of other sub-indices, the Junior Development Index was hit hard on the week, tumbling 17 points from 648.24 last Friday to a close this Friday of 631.24 for a loss of 2.62%. Given the relatively sharp nature of this week's decline, Development stocks fell below both the 50-day average at 633.37 and the 200-day average at 643.89.

Finally, we saw the Junior Exploration Index decline by 2.63% on the week, ending at 125.84 down from 129.25 the prior week. On Friday, the Junior Exploration Index ended above the 50-day average at 117.90 and the 200-day average at 109.30.

*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.