Financial Sense Junior Gold Index

General Comments

Metals prices edged slightly higher in the week just past, as the US Dollar Index flattened out and Oil mustered some small gains. On the week, spot Gold gained $7.90 per ounce to close at $829.85 up from the prior weeks close of $821.95. For spot Silver, prices gained $.26 per ounce to finish at $13.60, up from $13.34, while spot Platinum gained $51 per ounce, finishing at $1482 up from $1431 the prior week.

With the metal prices moving slightly higher, mining stocks edged further upward with the XAU Index gaining +.38 to finish at 149.22, up from 148.84. On the AMEX, the HUI Index added +1.49 to finish at 344.32, up from the prior week’s close of 342.83. Junior Mining stocks also added back some lost ground, with the FSO Junior Mining Index finishing at 191.07, up 4.48 index points from the prior weeks close of 186.59. For the FSO Junior Mining Index, the weekly gain totaled 2.40%. The 50 day average ended at 206.19, with the 200 day average finishing at 244.49.

Among the sub-indices, the Junior Producer Stocks were strong gaining 3.94%, with the FSO Junior Producer Index ending at 238.89, up from 229.82 the prior week. With Producers turning in a strong performance, the real star of the week was the Junior Development Index which gained 18.04 index points or 4.80% to close at 393.75, up from 375.75 the prior week. For the Development Index, the 50 day average ended at 418.32, with the 200 day average at 463.30. Exploration stocks were slightly lower on the week, with the Financial Sense Exploration Index ending down .56 to close at 106.72, lower from the prior weeks close of 107.28.

Combining the Development and Exploration stocks, we find that the Financial Sense Development and Exploration Index, a proxy of non-producers, (companies with no cash flow) ended higher by 4.10 to close at 178.48 up from 174.38 the prior week. That gain registered at 2.35%, and still left the D&E Index below its 50 day average at 194.47, with the 200 day average at 235.06.

Financial Sense Junior Gold Index™

Junior Gold Mining Index

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Above: Financial SenseJunior Gold Mining Index

Financial Sense Junior Gold Index™

Junior Mining Index

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Above: Financial Sense Junior Mining Index

Financial Sense Junior Gold Index™

Junior Development & ExplorationIndex

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Above: The Financial Sense Development and Exploration Index

Financial Sense Junior Gold Index™

Junior Development Index

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Above: FSO Junior Development Index

Financial Sense Junior Gold Index™

Junior Exploration Index

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Above: FSO Junior Exploration Index

Financial Sense Junior Gold Index™

FSO vs. XAU Relative Strength Ratio

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Perhaps the most encouraging element of the Precious Metals markets of late has been the improved relative performance in the secondary stocks over the last few weeks. As can be seen in the top clip, the Relative strength ratio of Juniors to Seniors has been coming off the lows, along with the medium term RSI in the bottom clip.

Financial Sense Junior Gold Index™

Juniors vs. Daily A/D Line

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In addition to the Relative Strength Ratio, the cumulative Daily Advance-Decline Line has also bottomed out and has been attempting to improve moving back toward the declining 50 day moving average. That’s all for now,
Frank

© 2008 Frank Barbera. All rights reserved.
Financial Sense Junior Gold Index Archive

*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.