[GRAPHIC: U.S. GLOBAL INVESTORS, INC. LOGO]
September 19, 1996
Dear Shareholder:
Thank you for attending our recent shareholder meeting in Las Vegas. We
appreciate your high level of involvement and participation in one of our most
important sources of information. Shareholder meetings not only provide us with
the opportunity to receive essential input from committed investors such as
yourself, they also supply you with valuable insight into our products and
services.
I have enclosed a new U.S. Global Investors, Inc., t-shirt and our most current
prospectus for the U.S. World Gold Fund. Chosen as the top gold fund in the
nation by Mutual Funds Magazine, the U.S. World Gold Fund has been providing
shareholders with above average returns for many years. According to the
Financial Analyst Journal of April, 1989, a study by economist Jeffery F. Jaffe
of the Wharton School of Business concluded that investing 5%- 10% of your
assets in gold and gold stocks adds diversification, increases return without
increasing risk and enhances stability in a balanced portfolio.
Many of our shareholders take advantage of dollar cost averaging through our ABC
Investment Plan(R) program. With an initial investment of $100 and subsequent
monthly investments of $30 or more debited directly from your checking or
savings account, the ABC Investment Plan(R) is an excellent method to
Automatically Build Capital. This systematic investment strategy may reduce the
volatility often associated with gold mining stocks by investing a fixed amount
of money each month without regard for market fluctuations.
If you have any questions, please contact a representative at 1-800-US-FUNDS
(1-800-873-8637). If you are dialing from a touch-tone telephone, press "5" at
the main menu to be connected with the next available representative. If you are
not dialing from a touch-tone telephone, please stay on the line, and a
representative will be with you promptly. You may also access our Internet page
on the World Wide Web at http://www.usfunds.com to obtain prospectus information
and share closing prices for all of our funds. Again, thank you for attending
our shareholder meeting, and I hope to see you at our upcoming investment
conferences.
Sincerely,
/S/ Eli Suarez
Eli Suarez
Assistant Vice President
Shareholder Services
- ----------
As of September 13, 1996, the average annual total return: 1 year: 28.50%; 5
year: 20.30%; 10 year: 8.03%. For more information, including charges and
expenses, call 1-800-US-FUNDS (1-800-873-8637). Please read the prospectus
carefully before investing. Investment return and principal value may vary, and
you may have a gain or a loss when you sell shares. Past performance is no
guarantee of future results. U.S. stands for United Services. Investing with the
ABC Investment Plan(R) does not guarantee a profit. If you sell at the bottom,
no system will give you a gain.
