FSJG Index™ Review
by Frank Barbera
March 26, 2007

General Comments

In the wake of Tuesday’s Federal Reserve meeting – where changes in the Fed “language” were interpreted to be the elimination of the “tightening bias” – precious metals-related assets turned in a solid performance holding onto, and building upon, gains seen in the prior two weeks. For the yellow metal, the week produced a modest gain of $3.30 per ounce with April Gold finishing at the $657.20 mark, up from $653.90 the prior week. Nearby May Silver slumped on Friday and in the process, ended the week modestly lower with a loss of $.10 to finish at $13.10. Thus far, Silver has been lagging other metals in its recovery off the March 14^th panic lows.

Elsewhere, large cap mining stocks turned in an especially robust performance with the widely-watched Philadelphia Gold and Silver Mining Index (XAU) ending the week at a reading of 137.78, up 3.94 index points from the prior week's close of 133.84. For the XAU, the gain of 2.94% built upon the prior week's gain of 1.36% leaving the index up 11.43 index points or 9.046% in just the last 7 sessions. Similarly, the Amex Gold Bugs Index (HUI) ended the week at 340.86 up 13.85 index points or 4.23% from last week's close of 327.01. From the panic low seen on March 14^th, (7 sessions ago) the high cap Gold Stocks have been the best performers, but were also the most negatively affected during the recent sharp stock market decline. 

Financial Sense Junior Gold Mining Index [FSJG]

On the week, the Junior Small Cap Miners began catching up, moving back on track with a gain of +2.42% on the Financial Sense Junior Gold Mining Index, which closed at a reading of 312.26, up 7.39 index points from last week's close of 304.87. Prior to March 16^th, the March 9^th close for the FSJG Mining Index was 307.04. On Friday March 23^rd, the index ended above the 50-day average at 300.65 and above the 200-day average at 256.60.

Looking back, the recent all-time high for this index was a close of 333.18 seen on February 26^th. At a close of 312.26 on Friday, the Index is still 6.27% below its former high. Among the FSJG Sub-Indices, the Junior Producers turned in the best showing with a gain of 13.16 index points or 4.05% on the week, roughly keeping pace with the XAU and HUI. For the FSJG Junior Producer Index, the 3/16 prior week close was a value of 324.24, with the Friday Mach 9^th close, a value of 329.65. On Friday, the index ended above its 50-day average at 330.07 and the 200-day average at 284.90.

Among the other Sub-Indices, Development Stocks have been, for the most part, in a long slumber as many development stage projects are in the pre-construction phase, normally a more quiet period. For the FSJG Junior Development Index, the week eked out a small gain of 2.21 index points or +.003% to end at a value of 691.25, up from the prior week's close of 689.04.  The Development Stock Index's Friday March 9^th close was 691.22. On Friday, the index managed to move just back above the 50-day average at 686.42, with the 200-day average at 647.77.

Completing our review of Sub-Indices, the FSJG Junior Exploration Index ended the week at 183.82, up 5.37 index points from the prior week's close of 178.45, a gain of 3.00%. On Friday, March 9^th, the Exploration Index closed at a value of 179.15. Over the last few months, this index has been the consistent leader with both the 50-day and 200-day averages in a strong rising configuration. On Friday, the 50-day average ended at 170.81, with the 200-day average at 131.91.

On a primary trend basis, the collective strength seen in the Junior and secondary segment of the market continues to show powerful out-performance within this space via the large cap miners with the Relative Strength Ratio turning higher once again.

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.