Financial Sense Junior Gold Mining Index Review by Frank Barbera 12/03/2007

General Comments

It was an ugly week in the precious metals arena as the US Dollar advanced from a low near 74.75 to a close on the week near 76.01. The perhaps long overdue bounce in fiat paper combined with a resurgence in confidence in the equity markets and in banking issues in particular, left the hard money crowd out in the cold, at least for 5 days. How long it will be until the next structure finance bombshell sends scared capital fleeing back into precious metals is anyone’s guess, but with all the leverage accumulated in recent years, the answer is probably not long at all. At any rate, for the week, the price of Gold fell by $38.35 to close at $783.90, down 4.66% from the prior weeks close of $822.25. Among the other metals, Silver fell by $.76/oz to end at $13.97, down 5.15% from the prior weeks close of $14.73, while Platinum fell $41/oz to end at $1436/oz, down 2.77% from $1477.

With the weakness in underlying metals, Mining stocks of all sizes and shapes were mugged, with the XAU down 2.83% or five index points to finish at 171.08, down from 176.08 the prior week. Among the smaller cap Gold’s, the FSO Junior Gold Index ended at 268.78, down 19.31 index points or 6.70%, from the prior weeks close of 288.09. The FSO Junior Mining Index ended the week below the 50 day average at 296.23, and below the 200 day average at 293.23. Junior Producer shares fell by 12.79 index points to close November 30th at 286.79, down 4.26% from last weeks close of 299.58. For the Junior Producer Index, the 50 day average closed at 297.29, with the 200 day average at 307.11. Junior Development issues also ended lower, tumbling 3.85% to end at 431.11, down 17.29 index points from the prior weeks close of 448.73. The 50 day average ended at 496.15, with the 200 day average ending at 560.85. Finally, Exploration stocks really were hit very hard last week, with the Exploration Index ending at 193.12, down 19.42 index points from the prior weeks close at 212.54, a loss of 9.13%. For the FSO Junior Exploration Index, the 50 day average ended at 215.33, with the 200 day average ending at 194.22.

Financial Sense Junior Gold Index™

Mining Index

Above: the FSO Junior Mining Index

Financial Sense Junior Gold Index™

Producer Index

Above: FSO Junior Producer Index

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

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.