<PAGE>
PAGE 1
FINANCIAL PLANNING
IDS Precious Metals Fund
1994 annual report
(prospectus enclosed)
(Icon of) Wagon of gold
The goal of IDS Precious Metals Fund, Inc. is long-term growth of
capital. The fund invests primarily in securities of companies
engaged in exploration, mining, processing or distribution of gold
and other precious metals. Most of these companies will be located
outside of the United States.
IDS
Am American Express company
AMERICAN
EXPRESS
Distributed by IDS Financial Services Inc.<PAGE>
PAGE 2
(Icon of) Wagon of gold
While investors typically look to stocks and bonds for the best
return on their money, there are times when hard assets such as
gold can play a small but important role in a diversified
portfolio. Because owning the metal itself is often impractical,
most investors put their money in stocks of companies that mine
gold and other precious metals. Those stocks, which form the
bedrock of IDS Precious Metals Fund, usually move in tandem with
the prices of the metals.<PAGE>
PAGE 3
Contents
(Icon of) One book inside of another and their both being opened
together.
The purpose of this annual report is to tell investors how the fund
performed.
The prospectus, which is bound into the middle of this annual
report, describes the fund in detail.
1994 annual report
From the president 4
From the portfolio manager 4
Ten largest holdings 6
Long-term performance 8
Making the most of your fund 7
Independent auditors' report 9
Financial statements 10
Notes to financial statements 13
Investments in securities 22
IDS mutual funds 24
Federal income tax information 27
1994 prospectus
The fund in brief
Goal 3p
Types of fund investments 3p
Manager and distributor 3p
Portfolio manager 3p
Sales charge and fund expenses
Sales charge 4p
Operating expenses 4p
Performance
Financial highlights 5p
Total returns 6p
Key terms 7p
How to buy, exchange or sell shares
How to buy shares 8p
How to exchange shares 10p
How to sell shares 10p
Reductions of the sales charge 14p
Waivers of the sales charge 15p
Special shareholder services
Services 16p
Quick telephone reference 16p
Distributions and taxes
Dividend and capital gain distributions 17p
Reinvestments 17p
Taxes 18p<PAGE>
PAGE 4
Investment policies
Facts about investments and their risks 21p
Valuing assets 25p
How the fund is organized
Shares 26p
Voting rights 26p
Shareholder meetings 26p
Directors and officers 26p
Investment manager and transfer agent 28p
Distributor 29p
About IDS
General information 31p
<PAGE>
PAGE 5
To our shareholders
From the president
(Photo of) William R. Pearce, President of the fund
(Photo of) Richard H. Warden, Portfolio manager
As you read this report, you'll find it very different from those
you've received from us in the past. We've made substantial
changes in the design and organization to make the information
easier to find and understand.
The annual report and prospectus are combined into a single
document, and each provides information important to you. The
annual report gives you the fund's performance information and a
snapshot of its investments. A good place to begin is with the
portfolio manager's letter, which describes the events and
investment strategies that most influenced the fund's performance
during the year. The prospectus includes essential data such as
the fund's investment policies and service information.
In redesigning our reports, we asked IDS financial planners and
some of you for suggestions. We believe that you'll find the
results of our work worthwhile.
William R. Pearce
From the portfolio manager
In a period marked by substantial swings in gold prices, as well as
the stock and bond markets, IDS Precious Metals Fund managed to
deliver a generous return. Particularly strong were the South
African and Australian markets, where, to the fund's benefit, we
increased our holdings during the past fiscal year.
The fiscal year started on an up note, with gold prices jumping 21%
from April through July 1993, causing stocks of gold producers to
rise even higher (gold stocks usually experience greater price
swings than the metal itself. The fund concentrates its holdings
in gold stocks). This trend was caused primarily by individual
speculators from around the world who pushed gold prices up. They
were preparing for the possibility that the Chinese would hoard
gold as an inflation hedge and that the Japanese yen, the German
mark and the U.S. dollar would all decline, making gold more
attractive to investors in those countries. These beliefs fueled
speculators' demand for gold and created a buying frenzy resulting
in an increase in the prices of gold-producer stocks owned by the
fund.
Cash cushions decline
But the trend was not to last. True to its often volatile nature,
gold declined 13% during the next two months, and gold stocks fell
even further. The downturn in gold prices came after a much-
anticipated collapse of European currencies failed to materialize.
Fortunately, we were positioned for a downturn in gold prices,
having boosted our cash levels, which provided a cushion for the
fund.<PAGE>
PAGE 6
During the second half of the fiscal year, demand for gold again
began to increase as investors, concerned about rising interest
rates, moved more of their assets into gold. This demand exceeded
the supply available from gold-mining companies, which drove up the
price of gold. Once again, gold stocks outperformed the metal
itself.
Demand slacked off somewhat in the December/January period, sending
gold prices back into retreat. This time, however, gold stocks did
not follow the metal's lead and continued to perform well.
Rate rise surprise
Another surprise came in February. Usually, gold will move in
concert with inflation trends. But when the Federal Reserve raised
short-term interest rates to head off inflation, gold stocks
reacted negatively along with the broad stock market, proving that
gold stocks can be just as vulnerable as other equities during
times of market weakness. That downtown was later compounded by
the negative effect of political unrest in South Africa, the
world's most important gold producer.
We expect the South African market to improve in the wake of
elections held there at the end of April. We also hold a positive
view of Australia, another key producer. Taking a broader view, we
think the longer-term trend for gold and gold stocks is positive.
A repeat of the superior performance of the past year, however,
would be unexpected. What's much more predictable is that gold
will continue its volatile ways. Therefore, investors should use
this fund only as a hedge against possible downturns in other
financial markets, limiting investments to a small portion of a
total portfolio.
Richard H. Warden
12-month performance
(All figures per share)
Net asset value (NAV)
March 31, 1994 $ 8.44
March 31, 1993 $ 6.00
Increase $ 2.44
Distributions
April 1, 1993 - March 31, 1994
From income $ 0.04
Total return* +41.3%
*If you purchased shares in the fund during this period, your
return also would have been affected by the sales charge, as
described in the prospectus.<PAGE>
PAGE 7
IDS Precious Metals Fund, Inc.
<TABLE><CAPTION>
Your fund's ten largest holdings
_____________________________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of March 31, 1994)
____________________________________________________________________________________
<S> <C> <C>
Freeport McMoRan Copper & Gold 7.81% $5,765,625
Gold, silver and copper producer in Indonesia
American Barrick Resources 7.73 5,709,375
North American precious metals producer
(Pie Chart) Placer Dome 6.67 4,925,000
The ten International precious metals producer
holdings
listed here make
up 55.53% of the
fund's net assets Plutonic Resources 6.36 4,698,000
Australian precious metals producer
TVX Gold 6.05 4,466,345
South American precious metals producer
Sons of Gwalia 5.33 3,933,600
Australian precious metals producer
Cambior 4.87 3,598,915
North and South American precious metals producer
Euro-Nevada Mining 4.16 3,071,364
North American gold royalty company
Dayton Mining 3.29 2,428,202
South American precious metals producer
Carson Gold Units 3.26 2,406,480
South American exploration company
</TABLE>
<PAGE>
PAGE 8
Making the most of your fund
Average annual total return
(as of March 31, 1994)
1 year 5 years Since inception*
+34.19% +4.70% +8.41%
*Period from April 22, 1985 to March 31, 1994.
Your investment and return value fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures reflect the deduction of the maximum 5% sales charge. This
was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.
Build your assets systematically
To keep your assets growing steadily, one of the best ways to
invest in the fund is by dollar-cost averaging--a time-tested
strategy that can make market fluctuations work for you. To
dollar-cost average, simply invest a fixed amount of money
regularly. You'll automatically buy more shares when the fund's
share price is low, fewer shares when it is high.
This does not ensure a profit or avoid a loss if the market
declines. But, if you can continue to invest regularly through
changing market conditions, it can be an effective way to
accumulate shares to meet your long-term goals.
How dollar-cost averaging works
Month Amount Per-share Number of shares purchased
invested market price
Jan $100 $20 5.00
Feb 100 18 5.56
Mar 100 17 5.88
Apr 100 15 6.67
May 100 16 6.25
June 100 18 5.56
July 100 17 5.88
Aug 100 19 5.26
Sept 100 21 4.76
Oct 100 20 5.00
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more
shares when the per share market price is low
(arrow in table pointing to September) and fewer shares when the
per share market price is high.
You have paid an average price of only $17.91 per share over the 10
months, while the average market price actually was $18.10.
<PAGE>
PAGE 9
Your fund's long-term performance
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold
by the fund exceed losses
o you receive income when the fund's stock dividends, interest
and short-term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has grown in IDS Precious Metals Fund
Average annual total return
(as of Mar. 31, 1994)
Since
1 year 5 years 4/22/85
+34.19% +4.70% +8.41%
$30,000
S&P 500
$20,974
$20,000 Precious Metals Fund
Lipper Gold Index
$9,500
'85 '86 '87 '88 '89 '90 '91 '92 '93 '94
(footnotes to table) Assumes: o Holding period from 5/1/85 to
3/31/94. o Returns do not reflect taxes payable on distributions.
o Also see "Performance" in the fund's current prospectus. o
Reinvestment of all income and capital gain distributions for the
fund, with a value of $4,633.
The Standard & Poor's 500 Stock Index, an unmanaged list of common
stocks, is frequently used as a general measure of market
performance. However, the S&P 500 companies are generally larger
than those in which the fund invests.
Lipper Gold Index, published by Lipper Analytical Services, Inc.,
includes 10 funds that are generally similar to this fund, although
some funds in the index may have somewhat different investment
policies or objectives.
On the chart above you can see how the fund's total return compared
to two widely cited performance indexes, the S&P 500 and the Lipper
Gold Index. In comparing Precious Metals Fund to the two indexes,<PAGE>
PAGE 10
you should take into account the fact that the fund's performance
reflects the maximum sales charge of 5%, while such charges are not
reflected in the performance of the indexes. If you were actually
to buy either individual stocks or growth mutual funds, any sales
charges that you pay would reduce your total return as well.
Your investment and return value fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
PAGE 11
Independent auditors' report
___________________________________________________________________
The board of directors and shareholders
IDS Precious Metals Fund, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments in securities,
of IDS Precious Metals Fund, Inc. as of March 31, 1994, and the
related statement of operations for the year then ended and the
statements of changes in net assets for each of the years in the
two-year period ended March 31, 1994, and the financial highlights
for each of the years in the eight-year period ended March 31,
1994, and for the period from April 22, 1985 (commencement of
operations) to March 31, 1986. These financial statements and the
financial highlights are the responsibility of fund management. Our
responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and the financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Investment securities held in custody are
confirmed to us by the custodian. As to securities sold but not
delivered and securities on loan, we request confirmations from
brokers, and where replies are not received, we carry out other
appropriate auditing procedures. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of IDS
Precious Metals Fund, Inc. at March 31, 1994, and the results of
its operations for the year then ended and the changes in its net
assets for each of the years in the two-year period ended March 31,
1994, and the financial highlights for the periods stated in the
first paragraph above, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick
Minneapolis, Minnesota
May 6, 1994
<PAGE>
PAGE 12
Financial statements
Statement of assets and liabilities
IDS Precious Metals Fund, Inc.
March 31, 1994
<TABLE><CAPTION>
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $53,672,650) $71,882,836
Cash in bank on demand deposit 1,699,670
Dividends and accrued interest receivable 342,356
Receivable for investment securities sold 426,884
Receivable for foreign currency contracts held,
at value (Notes 1 and 5) 426,884
_____________________________________________________________________________________________________________
Total assets 74,778,630
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Payable upon return of securities loaned (Note 6) 339,000
Payable for foreign currency contracts held, at value (Notes 1 and 5) 424,586
Accrued investment management and services fee 54,748
Accrued distribution fee 7,085
Accrued transfer agency fee 17,482
Other accrued expenses 95,837
_____________________________________________________________________________________________________________
Total liabilities 938,738
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $73,839,892
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 8,749,289 shares $ 87,493
Additional paid-in capital 83,389,678
Undistributed net investment income (Note 1) 181,946
Accumulated net realized loss (28,031,709)
Unrealized appreciation (Note 5) 18,212,484
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $73,839,892
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 8.44
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 13
Statement of operations
IDS Precious Metals Fund, Inc.
Year ended March 31, 1994
<TABLE><CAPTION>
Investment income
_____________________________________________________________________________________________________________
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $122,192) $ 1,076,151
Interest 256,935
_____________________________________________________________________________________________________________
Total income 1,333,086
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 594,587
Distribution fee 82,514
Transfer agency fee 205,259
Compensation of directors 7,587
Compensation of officers 547
Custodian fees 28,723
Postage 33,462
Registration fees 5,211
Reports to shareholders 15,010
Audit fees 18,000
Administrative 2,302
Other 27,597
_____________________________________________________________________________________________________________
Total expenses 1,020,799
_____________________________________________________________________________________________________________
Investment income -- net 312,287
_____________________________________________________________________________________________________________
Realized and unrealized gain -- net
_____________________________________________________________________________________________________________
Net realized gain (loss) on security transactions (including loss of $3,602
from foreign currency transactions) (Note 3) 9,988,564
Net change in unrealized appreciation or depreciation 11,276,891
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 21,265,455
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $21,577,742
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 14
Financial statements
Statement of changes in net assets
IDS Precious Metals Fund, Inc.
Year ended March 31,
<TABLE> <CAPTION>
Operations and distributions 1994 1993
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 312,287 $ 424,851
Net realized gain (loss) on investments and foreign currency 9,988,564 (2,775,734)
Net change in unrealized appreciation or depreciation 11,276,891 10,316,111
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 21,577,742 7,965,228
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (300,226) (244,909)
_____________________________________________________________________________________________________________
Capital share transactions
_____________________________________________________________________________________________________________
Proceeds from sales of
16,147,926 and 8,441,168 shares (Note 2) 127,104,496 44,253,997
Net asset value of 33,825 and 49,356 shares
issued in reinvestment of distributions 294,640 239,630
Payments for redemptions of
16,262,033 and 10,016,373 shares (127,803,264) (52,551,661)
_____________________________________________________________________________________________________________
Decrease in net assets from capital share transactions
representing net reduction of
80,282 and 1,525,849 shares (404,128) (8,058,034)
_____________________________________________________________________________________________________________
Total increase (decrease) in net assets 20,873,388 (337,715)
_____________________________________________________________________________________________________________
Net assets at beginning of year 52,966,504 53,304,219
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$181,946 and $173,560) $73,839,892 $52,966,504
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 15
Notes to financial statements
IDS Precious Metals Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies
The Fund is registered under the Investment Company Act of 1940 (as
amended) as a diversified, open-end management investment company.
Significant accounting policies followed by the fund are summarized
below:
Valuation of securities
All securities are valued at the close of each business day.
Securities traded on national securities exchanges or included in
national market systems are valued at the last quoted sales price;
securities for which market quotations are not readily available
are valued at fair value according to methods selected in good
faith by the board of directors. Determination of fair value
involves, among other things, reference to market indexes, matrixes
and data from independent brokers. Short-term securities maturing
in more than 60 days from the valuation date are valued at the
market price or approximate market value based on current interest
rates; those maturing in 60 days or less are valued at amortized
cost. Investments in metals are valued daily using data from
independent brokers and pricing services.
Options transactions
In order to produce incremental earnings, protect gains, and
facilitate buying and selling of securities for investment
purposes, the fund may buy or write options traded on any U.S. or
foreign exchange or in the over-the-counter market where the
completion of the obligation is dependent upon the credit standing
of the other party. The fund also may buy and sell put and call
options and write covered call options on portfolio securities and
may write cash-secured put options. The risk in writing a call
option is that the fund gives up the opportunity of profit if the
market price of the security increases. The risk in writing a put
option is that the fund may incur a loss if the market price of the
security decreases and the option is exercised. The risk in
buying an option is that the fund pays a premium whether or not the
option is exercised. The fund also has the additional risk of not
being able to enter into a closing transaction if a liquid
secondary market does not exist. The fund also may write
over-the-counter options where the completion of the obligation is
dependent upon the credit standing of the other party.
Option contracts are valued daily at the closing prices on their
primary exchanges and unrealized appreciation or depreciation is
recorded. The fund will realize a gain or loss upon expiration or
closing of the option transaction. When an option is exercised, the
proceeds on sales for a written call option, the purchase cost for
a written put option or the cost of a security for a purchased put
or call option is adjusted by the amount of premium received or
paid.
<PAGE>
PAGE 16
Notes to financial statements
IDS Precious Metals Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies (continued)
Foreign currency translations and
forward foreign currency contracts
Securities and other assets and liabilities denominated in foreign
currencies are translated daily into U.S. dollars at the closing
rate of exchange. Foreign currency amounts related to the purchase
or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. It is not practicable to
identify that portion of realized and unrealized gain (loss)
arising from changes in the exchange rates from the portion arising
from changes in the market value of investments.
The fund may enter into forward foreign currency exchange contracts
for hedging purposes and to protect against adverse exchange rate
fluctuation. The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the fund and the
resulting unrealized appreciation or depreciation are determined
using foreign currency exchange rates from an independent pricing
service. The fund is subject to the credit risk that the other
party will not complete the obligations of the contract.
Federal taxes
Since the fund's policy is to comply with all sections of the
Internal Revenue Code applicable to regulated investment companies
and to distribute all of its taxable income to shareholders, no
provision for income or excise taxes is required.
Net investment income (loss) and net realized gains (losses) may
differ for financial statement and tax purposes primarily because
of the deferral of losses on certain futures contracts, the
recognition of certain foreign currency gains (losses) as ordinary
income (loss) for tax purposes, and losses deferred due to "wash
sale" transactions. The character of distributions made during the
year from net investment income or net realized gains may differ
from their ultimate characterization for federal income tax
purposes. Also, due to the timing of dividend distributions, the
fiscal year in which amounts are distributed may differ from the
year that the income or realized gains (losses) were recorded
by the fund.
On the statement of assets and liabilities, as a result of
permanent book-to-tax differences, undistributed net investment
income has been decreased by $3,675 and accumulated net realized
loss has been decreased by $3,602 resulting in a net
reclassification adjustment to increase paid-in-capital by $73.
<PAGE>
PAGE 17
Dividends to shareholders
An annual dividend declared and paid by the end of the calendar
year from net investment income is reinvested in additional shares
of the fund at net asset value or payable in cash. Capital gains,
when available, are distributed along with the income dividend.
Other
Security transactions are accounted for on the date securities are
purchased or sold. Dividend income is recognized on the ex-dividend
date or upon receipt of ex-dividend notification in the case of
certain foreign securities. Interest income, including level-yield
amortization of premium and discount is accrued daily.
___________________________________________________________________
2. Expenses and sales charges
Under terms of an agreement dated Nov. 14, 1991, the fund pays IDS
Financial Corporation (IDS) a fee for managing its investments,
recordkeeping and other specified services. The fee is a
percentage of the fund's average daily net assets consisting of a
group asset charge in reducing percentages from 0.46% to 0.32%
annually on the combined net assets of all non-money market funds
in the IDS MUTUAL FUND GROUP and an individual annual asset charge
of 0.46% of average daily net assets. The fee is adjusted upward
or downward by a performance incentive adjustment based on the
fund's average daily net assets over a rolling 12-month period as
measured against the change in the Lipper Gold Fund Index. The
maximum adjustment is 0.12% of the fund's average daily net
assets after deducting 1% from the performance difference. If the
performance difference is less than 1%, the adjustment will be
zero. The adjustment increased the fee by $11,471 for the year
ended March 31, 1994.
The fund also pays IDS a distribution fee at an annual rate of $6
per shareholder account and a transfer agency fee at an annual rate
of $15 per shareholder account. The transfer agency fee is reduced
by earnings on monies pending shareholder redemptions.
IDS will assume and pay any expenses (except taxes and brokerage
commissions) that exceed the most restrictive applicable state
expense limitation.
Sales charges by IDS Financial Services Inc. for distributing fund
shares were $363,925 for the year ended March 31, 1994. The fund
also pays custodian fees to IDS Trust Company, an affiliate of IDS.
The fund has a retirement plan for its independent directors. Upon
retirement, directors receive monthly payments equal to one-half of
the retainer fee for as many months as they served as directors up
to 120 months. There are no death benefits. The plan is not funded
but the fund recognizes the cost of payments during the time the
directors serve on the board. The retirement plan expense amounted
to $2,963 for the year ended March 31, 1994.
<PAGE>
PAGE 18
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $30,969,285 and $34,034,687,
respectively, for the year ended March 31, 1994. Realized gains
and losses are determined on an identified cost basis.
Brokerage commissions paid to brokers affiliated with IDS were
$6,100 for the year ended March 31, 1994.
___________________________________________________________________
4. Capital loss carryover
For federal income tax purposes, the fund has a capital loss
carryover of $28,031,709 at March 31, 1994, that will expire in
1998 through 2001 if not offset by subsequent capital gains. It is
unlikely the board of directors will authorize a distribution
of any net realized capital gains until the available capital loss
carryover has been offset or expires.
___________________________________________________________________
5.Foreign currency contracts
At March 31, 1994, the fund had entered into a foreign currency
exchange contract that obligates the fund to deliver currency at a
specified future date. The unrealized appreciation of $2,298 on the
contract is included in the accompanying financial statements. The
terms of the open contract is as follows:
<TABLE><CAPTION>
U.S. Dollar value U.S. Dollar value
Currency to be as of Currency to be as of
Exchange date delivered March 31, 1994 received March 31, 1994
____________________________________________________________________________________________________
<S> <C> <C> <C> <C>
April 4, 1994 587,520 $ 424,586 426,884 $ 426,884
Canadian Dollar U.S. Dollar
</TABLE>
___________________________________________________________________
6. Lending of portfolio securities
At March 31, 1994, securities valued at $257,527 were on loan to
brokers. For collateral, the fund received $339,000 in cash.
Income from securities lending amounted to $14,249 for the year
ended March 31, 1994. The risks to the fund of securities lending
are that the borrower may not provide additional collateral when
required or return the securities when due.
___________________________________________________________________
7. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on page 5 of the prospectus.
<PAGE>
PAGE 19
Investments in securities
IDS Precious Metals Fund, Inc.
<TABLE><CAPTION> (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (80.8%)(c)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Australia (19.6%)
ASARCO 500,000 (b) $ 648,500
Delta Gold 600,000 (b) 1,464,000
Mount Burges Gold Mining 400,000 (b) 75,600
Newcrest Mining 200,000 866,600
Niugini Mining 200,000 (b) 806,400
Plutonic Resoures 1,000,000 4,698,000
Poseidon Gold 386,703 (d) 881,296
Resolute Resources 1,000,000 (b) 1,079,000
Sons of Gwalia 600,000 3,933,600
____________
Total 14,452,996
_____________________________________________________________________________________________________________________________
North/South America (47.0%)
Amer Barrick Resoures 225,000 5,709,375
Cambior 240,000 3,598,915
Carson Gold 120,200 (b) 421,298
Dayton Mining 700,000 (b) 2,428,202
Echo Bay Mines 10,000 132,500
Euro-Nevada Mining 100,000 3,071,364
Francisco Gold 150,000 (b) 368,563
Freeport McMoRan Copper & Gold 225,000 5,765,625
Golden Star Resources 50,000 (b) 754,291
Homestake Mining 10,000 225,000
Intl Gold Resources 200,000 (b) 556,458
LAC Minerals 50,000 431,250
Newmont Gold 20,000 927,500
Placer Dome 200,000 4,925,000
San Fernando Mining 100,000 (b) 370,370
Santa Fe Pacific 25,000 568,750
TVX Gold 686,700 (b) 4,466,345
____________
Total 34,720,806
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 20
Investments in securities
IDS Precious Metals Fund, Inc.
<TABLE><CAPTION> (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (cont'd)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
South Africa (14.2%)
Driefontein Consolidated ADR 205,000 $ 2,203,750
Free State Consolidated Gold ADR 40,000 515,000
Hartebeestfontein Gold Mining ADR 265,000 1,205,750
Kloof Gold Mining ADR 225,000 2,053,125
Loraine Gold Mines 100,000 (b) 310,200
Vaalreefs Exploration Mining ADR 250,000 2,156,250
Western Deep Levels ADR 55,000 2,062,500
____________
Total 10,506,575
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $42,647,344) $59,680,377
_____________________________________________________________________________________________________________________________
Preferred stocks & other (10.3%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Canarc Special
Warrants 500,000 1,734,400
Carson Gold
Units 600,000 2,406,480
Echo Bay Finance
$1.75 Cv Cl D 50,000 2,106,250
Euro-Nevada Mining
Warrants 40,000 (c) 292,682
Unisys
$3.75 Cv 25,000 1,056,250
_____________________________________________________________________________________________________________________________
Total preferred stocks & other
(Cost: $6,348,614) $7,596,062
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 21
Investments in securities
IDS Precious Metals Fund, Inc.
<TABLE><CAPTION> (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (0.7%)
_____________________________________________________________________________________________________________________________
Issuer and Principal Value(a)
coupon rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Agnico Eagle Mines
(U.S. Dollar)
3.50% Cv 2004 $ 100,000 $ 86,500
Escom
(South African Rand)
11% 2008 2,400,000 (c) 426,576
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $583,371)] $ 513,076
_____________________________________________________________________________________________________________________________
Short-term securities (5.5%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
U.S. government agency (3.2%)
Federal Natl Mtge Assn
Disc Nts
04-25-94 3.43% $1,700,000 $ 1,696,124
04-25-94 3.51 700,000 698,367
___________
Total 2,394,491
_____________________________________________________________________________________________________________________________
Commercial paper (2.3%)
Becton Dickinson
04-08-94 3.55 1,700,000 1,698,830
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $4,093,321) $ 4,093,321
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $53,672,650)(e) $71,882,836
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 22
Investments in securities
IDS Precious Metals Fund, Inc.
March 31, 1994
<TABLE><CAPTION>
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Presently non-income producing.
(c) Foreign security values are stated in U.S. dollars; principal amount is denominated in the
currency indicated.
(d) Security is partially on loan. See Note 6 to the financial statements
(e) At March 31, 1994, the cost of securities for federal income tax purposes was
$53,672,650 and the aggregate gross unrealized appreciation and depreciation
based on that cost was:
<S> <C>
Unrealized appreciation $21,008,545
Unrealized depreciation (2,798,359)
___________________________________________________________________________________________
Net unrealized appreciation $18,210,186
___________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 23
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conversation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposits (CDs) and
other bank securities.
(icon of) piggy bank
IDS Planned Investment Account
Invests in money market securities to provide maximum current
income consistent with liquidity and stability of principal of
principal, while serving as a base for systematic exchanges into
IDS fixed income and equity funds.
(icon of) stair steps
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income. Secondary
objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
achieve high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed-income
securities in the lower rated, higher risk bond categories to
provide high current income. Secondary objective is capital
growth.
(icon of) cornucopia
<PAGE>
PAGE 24
Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher
rated, lower risk bond categories,or the equivalent, and in
government bonds.
(icon of) greek column
IDS Strategy Income Fund
Invests primarily in corporate and government bonds to seek high
current income while conserving capital. Also may seek capital
appreciation when consistent with its primary goals.
(icon of) chess piece
IDS Selective Fund, Inc.
Invests in high quality corporate bonds and other highly-rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund, Inc.
Invests primarily in securities issued or guaranteed as to
principal and interest by the U.S. government, its agencies and
instrumentalities. Seeks a high level of current income and safety
of principal consistent with its type of investments.
(icon of) federal building
IDS Strategy, Short-Term Income Fund
Invests primarily in short-term and intermediate-term bonds and
notes to seek a high level of current income.
(icon of) chess piece
Tax-exempt income investments
These funds provide tax-free income by investing in municipal
bonds. The income is generally free from federal income tax. Risk
varies by bond quality.
IDS High Yield Tax-Exempt Fund, Inc.
Invests primarily in medium- and lower-quality municipal bonds and
notes.
(icon of) shield with basket of apples enclosed
<PAGE>
PAGE 25
IDS State Tax-Exempt Funds
(California, Massachusetts, Michigan, Minnesota, New York, Ohio)
Invests primarily in high- and medium-grade municipal securities to
provide income to residents of each respective state that is exempt
from federal, state and local income taxes. (New York is the only
state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS Tax-Exempt Bond Fund, Inc.
Invests mainly in bonds and notes of state or local government
units, with at least 75 percent in the four highest rated, lowest
risk bond categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the Fund but does not guarantee
the market value of the Fund's shares.
(icon of) shield with eagle head
Growth and income investments
These funds focus on securities of medium to large, well-
established companies that offer long-term growth of capital and
reasonable income from dividends and interest. Moderate risk.
IDS International Fund, Inc.
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The Fund may invest up to 20
percent of its assets in the U.S. market.
(icon of) three flags
IDS Strategy, Worldwide Growth Fund
Invests primarily in common stocks of companies throughout the
world that offer potential for superior growth. Holding may range
from small- to large-capitalization stocks, including those of
companies involve in areas of rapid economic growth.
(icon of) chess piece
IDS Managed Retirement Fund, Inc.
Invests in a combination of common stocks, fixed income investments
and money market securities to seek a maximum total return through
a combination of growth of capital and current income.
(icon of) bird in a nest
<PAGE>
PAGE 26
IDS Equity Plus Fund, Inc.
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three apple trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by IDS research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund, Inc.
Invests primarily in common stocks of blue chip U.S. companies
representing almost every major sector of the economy. Seeks
current income and growth of capital.
(icon of) building with columns
IDS Strategy, Equity Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) chess piece
IDS Utilities Income Fund, Inc.
Invests primarily in the stocks of public utility companies to
provide high current income and growth of income and capital with
reduced volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to provide high
current income and, secondarily to benefit from the growth
potential offered by stock investments.
(icon of) four puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice
<PAGE>
PAGE 27
Growth funds
Funds in this group seek capital growth, primarily from common
stocks. They are high risk mutual funds with a potential for high
reward.
IDS Discovery Fund, Inc.
Invests in small and medium-sized, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Growth Fund, Inc.
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
IDS Strategy, Aggressive Equity Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
Portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS New Dimensions Fund, Inc.
Invests primarily in domestic companies with significant growth
potential due to superiority in technology, marketing or
management. The Fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund, Inc.
Invests primarily in undervalued common stocks. The Fund holds
stocks for the long-term with the goal of capital growth.
(icon of) shooting star
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy. These
companies offer above-average potential for long-term growth.
(icon of) world
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against
inflation.<PAGE>
PAGE 28
IDS Precious Metals Fund, Inc.
Invests primarily in the securities of foreign or domestic
companies that explore for, mine and process or distribute gold and
other precious metals. This is the most aggressive and most
speculative IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including
charges and expenses, you can obtain a prospectus by contacting
your IDS personal financial planner or writing to IDS Shareholder
Service, P.O. Box 534, Minneapolis, MN 55440. Read it carefully
before you invest or send money.<PAGE>
PAGE 29
Federal income tax information
IDS Precious Metals Fund, Inc.
___________________________________________________________
The fund is required by the Internal Revenue Code of 1986 to tell
its shareholders about the tax treatment of the dividends it pays
during its fiscal year. The dividend listed below was reported to
you on a Form 1099-DIV, Dividends and Distributions, last January.
Shareholders should consult a tax adviser on how to report
distributions for state and local purposes.
IDS Precious Metals Fund, Inc.
Fiscal year ended March 31, 1994
Income distribution -
taxable as dividend income, 100% qualifying for deduction by
corporations.
Payable date Per share
Dec. 30, 1993 $0.0356
<PAGE>
PAGE 30
Quick telephone reference
IDS Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 671-3800
IDS Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
IDS Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
Your IDS financial planner:
IDS Precious Metals Fund
IDS Tower 10
Minneapolis, MN 55440-0010
