Financial Sense Junior Gold Mining Index Review by Frank Barbera 03/03/2008

General Comments

It was another strong week for the Precious Metals complex as extreme turmoil in the financial world continued to force money into the safety of precious metals. On the week, spot Gold gained $29.40 to close at $973.70 up 3.11%, while Spot Silver gained $1.79 per ounce or 9.94%. For Silver, it was the best weekly percentage gain seen since August 4th of 2006 and prior to that September 21st 2001. After five towering weeks of unrelenting advance, Spot Platinum prices took a break this week and eased by $9.00, an inconsequential decline given the prior nearly 40% gain in the last five weeks. On the week, large cap gold miners gained ground moving higher for the third week in a row. For the widely watched XAU Index, the week produced a gain of 6.64 index points or 3.49%, while the HUI, Amex Gold Bugs Index ended with a gain of 21.09 index points or 4.53%. For the first time in many weeks, the FSO Junior Mining Indices actually outperformed there large cap cousins with the FSO Junior Mining Index advancing by 14.81 index points or 5.48%, outperforming both the XAU and HUI. On the week, the FSO Junior Mining Index ended back above the 50 day average at 268.72 and above the 200 day average at 282.38.

Financial Sense Junior Gold Index™

Mining Index

Above: the FSO Junior Mining Index - 40 stocks

Financial Sense Junior Gold Index™

Producer Index

Above: FSO Junior Producer Index

Junior Producer small cap stocks also posted hefty gains adding 6.65% on the week with the index closing at 292.21, up from 273.98 the prior week. Like the FSO Mining Index, the Junior Producer Index also closed back above the 50 day average at 275.44, with the 200 day average finishing at 288.00. Joining the Junior Producers in the black for the week were both the Junior Development and Junior Exploration Indices. For Development stage companies, the index closed at 535.48, up 17.50 index points or 3.37%, gaining from last weeks close of 517.98. The 50 day average ended at 490.39, with the 200 day average at 514.76. Finally, Exploration Stocks had a strong week with the FSO Junior Exploration Index ending at 192.80, up 11.04 from last weeks close of 181.76, with the 50 day average ending at 184.98 and the 200 day average ending at 195.03. For the week, Exploration stocks gained 6.07%. With the lone exception of the Exploration Index and its 200 day moving average, all FSO Junior Gold Indices ended above both the 50 day and the 200 day average the first time that has been seen since April of last year. In addition, the relative strength ratio of Juniors to Seniors registered a modest upside move above a long standing downtrend line over the last few days, perhaps another technical indication that the long depressed Juniors are starting to improve.

Financial Sense Junior Gold Index™

Development Companies

Above: FSO Junior Development Index

Financial Sense Junior Gold Index™

Exploration Companies

Above: The FSO Junior Exploration Index

Financial Sense Junior Gold Index™

The Relative Strength Ratio of Juniors vs. Seniors

Above: The Relative Strength Ratio of Juniors versus Seniors

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.