FSJG Index™ Review
by Frank Barbera
March 12, 2007

General Comments

Well, it was a bit of a welcome relief on Friday with most capital markets closing higher in the wake of the previous week’s heart-stopping decline. For the DJIA, gains totaled 162.22 index points or 1.33% for the week, with the broader S&P rebounding by 1.13%. The rebound in stock prices also helped commodities regain some of  their footing with nearby Gold up $5.20, nearby Silver higher by .04 cents and NYMEX Platinum down $9.0/oz.

Among large cap mining stocks, selling pressure remained with a decidedly bearish tone overhanging the metals group. Recently Hulbert Financial Digest noted that in a survey of gold market related newsletters, all of its surveyed editors were distinctly bearish. Among the major Gold stocks, AU was down .06 for the week, NEM down .83, ABX down .54 and GG down .54. So despite some recovery, the large cap miners were mainly lower. Within the Gold Stock Indices, the XAU ended lower by .32 at 132.04, down from 132.36, while the HUI, which is slightly more weighted to the Intermediate Producers and Juniors, ended up 4.95 index points to close at 328.24, up from 323.39.

Financial Sense Junior Gold Mining Index [FSJG]

Yet, despite a tepid environment for large cap majors, the Junior Miners of the FSJG Mining Index turned in a rather stellar week with the index ending at 307.04, up 6.40 index points or 2.12% from last week's close of 300.64. For the FSJG Mining Index, the 50-day average closed Friday at 294.12, with the 200-day average ending at 252.83.

Among the Junior Producers, the rebound continued with the index ending higher by 2.26% to close at 329.65, up from 322.36 the prior week for a gain of 7.29 index points. For the Junior Producers, the 50-day average ended at 325.41, with the 200-day average at 281.29. Development stocks ended the week flat, still showing few signs of real strength, with the index ending at 691.22, up 4.47 index points from the prior week’s close of 686.75. For the FSJG Development Index, the 50-day average ended at 679.78, with the 200 day average at 645.70. Rounding out the Sub-Indices, Exploration stocks once again pressed higher with the index ending at 179.15, up 5.62 index points from the prior week’s close of 173.53, a gain of 3.23% for the week. For the FSJG Exploration Index, the 50-day average ended at 164.51, with the 200-day average at 128.27.

Over the last few weeks, we continue to note that Small Cap Miners perform very well relative to their senior cousins, with the Relative Strength Ratio of Small Cap to Large Cap Miners moving straight up. Going back to January 9, 2002, the Small Miners represented by the FSJG Mining Index of 40 stocks has gained 1,081% versus the XAU, which is up 127% or nearly ten times the return…..Not Bad.. Not Bad at all

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.