FSJG Index™ Weekly Review
by Frank Barbera
February 3, 2006

General Comments

Gold prices advanced for the 11^th time in the last 13 weeks closing the week at $571.50, up $7.90 from $563.60 the previous week. Despite the gain in Gold, leading Gold Indices ended the week well off their highs with the XAU squeaking out a gain of .97 to close at 146.79 and the HUI ending up 2.48% at 332.39.

Gold Indices turned lower after Tuesday’s Fed announcement and amid additional data points late in the week -- including a strong employment report and a weak productivity report. These economic reports, released on Thursday and Friday, added momentum to the view that more interest rate increases would be in the offing in March and May. As a result, commodity prices weakened while the U.S. Dollar rallied.

Financial Sense Junior Gold Index

On Friday, the Financial Sense Junior Gold Index (FSJG) ended at 244.63, up from 242.32 the prior week for a gain of 2.31 or .9%. At Friday’s close the FSJG Index ended above both the 50-day and 200-day moving averages, with the 50-day average finishing at 201.05 and the 200-day average at 162.34.

Among the Junior Producers, prices ended the week on a firm note with the index closing at 263.85, up from 254.52 the prior week for a gain of 3.67%. The Junior Producer Index ended well above its 200-day moving average, which finished at a reading of 179.76.

Financial Sense Junior Gold Index™
Producer Companies

Junior Development stocks ended the slightly lower with the Development Index at 704.57, down 1.33 from the prior week's close of 705.90. The 200-day average finished at 467.78.

Finally, for the Junior Exploration Index, prices also edged lower, ending the week at 112.24, down from 109.95 for a loss of 2.03%. The 200-day average ended at 69.40.

*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.