FSJG Index™ Review
by Frank Barbera
January 28, 2007

General Comments

It was a solid week for the Precious Metals with Gold gaining +10.20 to close at $646.00 (1.60%) with Silver up $.465 or 3.60% and Platinum edging higher by $3.00. Not bad, considering that central banks have still been bias to tightening of late and the US Dollar has held ground. With the strength in the underlying physical markets came a nice rally in metals shares. The XAU moved higher by 5.56 index points or 4.17% to end the week at 138.65 and the HUI gained 12.98 index points to end at 4.08%. Yet, once again, the smaller cap mining shares have ended up with a great showing, consistently leading and keeping pace with their higher cap brethren.

Financial Sense Junior Gold Index

For the week, the Financial Sense Junior Gold Mining (FSJG) Index of 40 Small Cap Gold and Silver Mining stocks, ended at 287.82, up 10.94 index points or 3.95% from last week's close of 276.88. On Friday, the FSJG Mining Index only slightly below its recent multi-year high at 288.61 seen on Wednesday’s close. For the Junior Mining Index, the 50-day average closed at 275.71 with the 200-day average at 245.65.

Among the sub-indices, the Junior Producers displayed the best leadership gaining 5.00% versus gains of 4.26% in the long slumbering Development Index and yet another solid gain of 2.89% in the fast-paced Exploration stocks. With the sub-indices, closing values for the week were 325.79 on the Junior Producers, up from 310.22, 673.45 on the Junior Development Index, up from 645.97 and 156.63 on the Junior Exploration Mines, up from 152.22. Both the Junior Producers and the Junior Exploration Indices went to new multi-year highs. If there is anything more bullish then small cap gold stocks moving out in front of larger cap miners with the stocks moving quickly to new highs? -- Doubt it. For the Junior Producers, the 50-day average ended at 308.57, with the 200-day average a 273.35, while the 50-day average for Development stocks ended at 669.66 with the 200-day at 652.85.

Finally, for the Exploration Index, which I had to graph on a log scale, the 50-day average ended at 146.29, with the 200-day at 119.39. On the week, we also note that the McClellan Summation Index turned higher in a positive cross-over, with the Relative Strength Ratio of Juniors to Seniors also, still moving consistently higher.

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.