FSJG Index™ Review
by Frank Barbera
January 15, 2007

General Comments

It was a positive week for metals prices with Gold gaining back $19.50 to close at $627.50 for a gain of 3.20% from the prior week's close of $607.90. For nearby Silver, prices also recovered some of their recent losses with Silver gaining .66 cents to close at $12.99, up 5.35% from the prior week's close of $12.33. With rebounding metals prices came a modest recovery rally in the mining stocks with the XAU actually trimming earlier losses to finish the week with a gain of 1.74 index points or 1.30% ending at 134.78. The modest gain in high-cap gold miners was matched and exceeded by healthy gains in small cap mining companies.

Financial Sense Junior Gold Index

Showing their traditional high-beta movement, the Financial Sense Junior Gold Mining Index (FSJG) ended at 275.45, up 6.91 index points from the prior week's close of 268.54 for a gain of 2.57% on the week. The FSJG Mining Index ended back above the 50-day average at 270.80 and above the 200-day average at 244.57.

Among the Sub-Indices, the Junior Producer Index closed at 310,.31, up 10.84 index points from the prior week's close of 299.47, a gain of 3.61%. For the Junior Producers, the 50-day average ended at 302.44 with the 200-day average at 272.20.

In addition to strength in the Producers, both the Development stocks and the Exploration Indices ended the week with gains. For the Junior Development stocks, gains were modest with a movement of 6.76 index points from 647.24 the prior week to a close on Friday of 654.00 - a gain of 1.04%.

For the super-star Junior Exploration sector, the week saw gains of 3.19% lifting the index by 4.60 index points from 143.90 to 148.50. For the Exploration stocks, the 50-day average ended at 141.47 with the 200-day average at 117.13. For the Development Index, the 50-day average ended at 669.71 with the 200-day average at 658.37.

Relative Strength Small Caps
vs. Large Cap Mining Companies

With the better-than-average gains in the Small Cap Mining sector seen last week, the Relative Strength Ratio versus the XAU continued to advance. Overall, this is a very positive sign considering that over the bulk of the last few weeks both Gold and the XAU have been on balance trending lower.

That’s all for now,

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.