PAGE
IDS
Precious
Metals
Fund
1995 semiannual report
(icon of: cart of percious gems)
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.
Distributed by
American Express
Financial Advisors Inc.
<PAGE>
PAGE
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.
Contents
From the president 3
From the portfolio manager 3
Ten largest holdings 5
Financial statements 6
Notes to financial statements 9
Investments in securities 18
Directors and officers 20
IDS mutual funds 21
<PAGE>
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(Picture of: William R. Pearce)
William R. Pearce
President of the Fund
To our shareholders
From the president
As I indicated in the Fund's previous reports, new agreements between the
Fund and American Express Financial Corporation (AEFC) were approved by
shareholders in November 1994. The new agreements became effective when the
Fund began offering multiple classes of shares on March 20, 1995.
The advantage of offering more than a single class of shares is that
investors may choose how they wish to pay sales charges. A portion of
these charges compensates your American Express financial advisor
(formerly called your IDS planner), who is committed to providing you
with outstanding services.
Adding new classes of mutual fund shares does make the presentation of
financial information in this report more complex. However, we will
continue our effort to make the reports easier to read and understand.
Meanwhile, your American Express financial advisor is available to answer
your questions.
William R. Pearce
(Picture of: Richard H. Warden)
Richard H. Warden
Portfolio manager
From the portfolio manager
Breaking with their history of volatility, stocks of gold producers
displayed consistently strong performance during the past six months.
IDS Precious Metals Fund was very well positioned to take advantage of
the favorable environment, registering positive returns in every month
but one. Ultimately, it generated a total return of almost 20% for the
first half of the fiscal year (April through September, 1995).
The period got off to a spectacular start, as surging stock prices
resulted in the Fund advancing nearly 10% last April. This was in marked
contrast to the first three months of 1995, which saw gold stocks
struggle under the pressure of labor unrest in South Africa and
depreciating currencies in the two major gold-producer markets, Canada
and Australia.
<PAGE>
PAGE
Supply/demand situation favorable
Much of the run-up resulted from concerns that labor disputes in South
Africa and torrential rains in Australia, which caused the shut-down of
many mines in that country, would soon sharply curtail gold production.
With gold demand already outstripping supply, gold and the stocks of its
producers quickly captured investors' fancy and their investment capital,
driving prices higher. With the exception of August, when there was a
mild dip, the uptrend continued through the end of the fiscal period in
September.
In addition to the gold market's narrow trading range, the period was
unusual in that the inflation rate in most major countries remained tame.
Historically, gold prices have moved largely in tandem with inflation
rising inflation leading to higher gold prices and vice-versa.
Clearly, the positive supply/demand situation was a major factor during
the past six months.
Low cash pays off
Also benefiting the Fund's performance was our strategy of maintaining a
low level of cash reserves, about 5% of portfolio assets. This meant we
kept nearly all of the assets at work in gold stocks, which provided a
far higher return than cash-equivalent investments during the past
six months.
As for changes to the portfolio, we made some small shifts in our exposure
to the major markets, including a reduction last spring in our Australian
and South African holdings. For the most part, though, our investment mix
is much the same as it has been for years: the majority in North America,
followed by Australia and South Africa. In an effort to boost future
returns, we did add investments in several gold-exploration companies,
which, because of their size, may be more flexible than their larger
counterparts in seizing new business opportunities.
At this writing, the market fundamentals of healthy demand and restricted
supply remain in place for gold. While that's no guarantee that stock
prices will continue to rise during the rest of the fiscal year, we think
the longer-trend continues to be positive for those companies with
increasing production and/or reserves, or that have a major exploration
discovery.
Richard H. Warden
<PAGE>
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Class A
6-month performance
(All figures per share)
Net asset value (NAV)
Sept. 30, 1995 $ 9.45
March 31, 1995 $ 7.99
Increase $ 1.46
Distributions
April 1, 1995 - Sept. 30, 1995
From income $ --
From capital gains $ --
Total distributions $ --
Total return* +18.3%**
Class B
6-month performance
(All figures per share)
Net asset value (NAV)
Sept. 30, 1995 $ 9.41
March 31, 1995 $ 7.99
Increase $ 1.42
Distributions
April 1, 1995 - Sept. 30, 1995
From income $ --
From capital gains $ --
Total distributions $ --
Total return* +17.8%**
Class Y
6-month performance
(All figures per share)
Net asset value (NAV)
Sept. 30, 1995 $ 9.45
March 31, 1995 $ 7.99
Increase $ 1.46
Distributions
April 1, 1995 - Sept. 30, 1995
From income $ --
From capital gains $ --
Total distributions $ --
Total return* +18.3%**
*The prospectus discusses the effect of sales charges, if any, on the
various classes.
**The total return is a hypothetical investment in the Fund with all
distributions reinvested.<PAGE>
PAGE
<TABLE>
<CAPTION>
IDS Precious Metals Fund, Inc.
Your fund's ten largest holdings
Picture of pie chart: The ten holdings listed here make up 54.90% of
the funds's net assets
Percent Value
(of fund's net assets) (as of Sept. 30, 1995)
<S> <C> <C>
Barrick Gold 8.03% $5,821,875
This company is engaged in the mining and exploration of gold in the
United States, Chile and Canada
Freeport McMoRan Copper & Gold 7.95 5,765,625
A Gold, silver and cooper producer in Indonesia.
Dayton Mining 6.35 4,604,648
A South American precious metals producer
Sons of Gwalia 6.28 4,556,700
An Australian precious metals producer.
Stillwater Mining 4.88 3,536,920
This company explores, develops, mines and produces platinum, palladium
and associated metals from the Stillwater Complex located in the
Beartooth Mountains in southern Montana.
TVX Gold 4.75 3,441,860
A Canadian and South American precious metals producer.
Intl Gold Resources 4.73 3,432,555
A Canadian company exploring for gold in West Africa.
Plutonic Resources 4.28 3,105,600
An Australian precious metals producer.
Acacia Resources 3.99 2,890,500
An Australian precious metals producer.
Cambior 3.66 2,651,163
A North and South America precious metals producer
</TABLE>
<PAGE>
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Statement of assets and liabilities
IDS Precious Metals Fund, Inc.
Sept. 30, 1995
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________
Assets
______________________________________________________________________________________________________________
<S> <C>
(Unaudited)
Investments in securities, at value (Note 1)
(identified cost $59,693,284) $76,100,100
Cash in bank on demand deposit 513,661
Dividends and accrued interest receivable 79,481
Unrealized appreciation on foreign currency contracts held, at value (Notes 1 and 4) 1,750
U.S. government securities held as collateral (Note 7) 4,478,729
_____________________________________________________________________________________________________________
Total assets 81,173,721
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Payable for investment securities purchased 433,598
Payable upon return of securities loaned (Note 7) 8,112,729
Accrued investment management services fee 10,403
Accrued distribution fee 30
Accrued service fee 692
Accrued transfer agency fee 940
Accrued administrative services fee 237
Other accrued expenses 104,535
_____________________________________________________________________________________________________________
Total liabilities 8,663,164
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $72,510,557
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value; $ 76,735
Additional paid-in capital 73,115,465
Net operating loss (286,329)
Accumulated net realized loss (Notes 1 and 6) (16,803,880)
Unrealized appreciation of investments and on translations
of assets and liabilities in foreinn currencies 16,408,566
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $72,510,557
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $71,773,965
Class B $ 735,431
Class Y $ 1,161
Net asset value per share of outstanding capital stock: Class A shares 7,595,218 $ 9.45
Class B shares 78,157 $ 9.41
Class Y shares 123 $ 9.44
See accompanying notes to financial statements. <PAGE>
PAGE
Financial statements
Statement of operations
IDS Precious Metals Fund, Inc.
Six months ended Sept. 30, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
(Unaudited)
Income:
Interest $ 166,035
Dividends (net of foreign taxes withheld of $24,871) 160,995
_____________________________________________________________________________________________________________
Total income 327,030
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 331,404
Distribution fee - Class B 1,690
Transfer agency fee 97,299
Incremental transfer agency fee - Class B 64
Service fee
Class A 64,477
Class B 394
Administrative services fee 22,230
Compensation of directors 12,728
Compensation of officers 395
Custodian fees 48,208
Postage 20,429
Registration fees 48,956
Reports to shareholders 11,717
Audit fees 10,375
Administrative 1,118
Other 4,610
_____________________________________________________________________________________________________________
Total expenses 676,094
_____________________________________________________________________________________________________________
Investment loss -- net (349,064)
_____________________________________________________________________________________________________________
Realized and unrealized gain -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including loss of $4,454 from foreign currency transactions) (Note 3) 8,408,174
Net change in unrealized appreciation or depreciation of investmnets and on
translations of assets and liabilites if foreign currencies 4,446,491
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 12,854,665
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $12,505,601
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
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<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Precious Metals Fund, Inc.
_____________________________________________________________________________________________________________
Operations and distributions Sept. 30,1995 March 30,1995
_____________________________________________________________________________________________________________
Six months ended Year ended
(Unaudited)
<S> <C> <C>
Investment income (loss) -- net $ (349,064) $ 216,565
Net realized gain on investments and foreign currency 8,408,174 2,803,911
Net change in unrealized appreciation or depreciation 4,446,491 (6,250,409)
_____________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting from operations 12,505,601 (3,229,933)
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A -- (320,491)
_____________________________________________________________________________________________________________
Capital share transactions (Note 5)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 47,615,312 87,414,117
Class B shares 1,179,903 39,862
Class Y shares 1,000 20
Reinvestment of distributions at net asset value
Class A shares -- 314,487
Payments for redemptions
Class A shares (60,233,679) (86,077,835)
Class B shares (Note 2) (537,699) --
_____________________________________________________________________________________________________________
Increase (decrease) in net assets from capital share transactions (11,975,163) 1,690,651
_____________________________________________________________________________________________________________
Total increase (decrease) in net assets 530,438 (1,859,773)
Net assets at beginning of period 71,980,119 73,839,892
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income of
$(286,329) and $62,735) $72,510,557 $71,980,119
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
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Notes to financial statements
IDS Precious Metals Fund, Inc.
(Unaudited as to Sept. 30, 1995)
______________________________________________________________________________
1. Summary of significant accounting policies
The Fund is registered under the Investment Company Act of 1940 (as amended)
as a non-diversified, open-end management investment company. The Fund offers
Class A, Class B and Class Y shares. Class A shares are sold with a front-end
sales charge. Class B shares, which the Fund began offering on March 20,
1995,may be subject to a contingent deferred sales charge. Class B shares
automatically convert to Class A after eight years. Class Y shares, which
the Fund also began offering on March 20, 1995, have no sales charge and
are offered only to qualifying institutional investors.
All classes of shares have identical voting, dividend, liquidation and
other rights, and the same terms and conditions, except that the level of
distribution fee, transfer agency fee and service fee (class specific
expenses) differs among classes. Income, expenses (other than class specific
expenses) and realized and unrealized gains or losses on investments are
allocated to each class of shares based upon its relative net assets.
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, including illiquid securities,
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, if any, are valued daily
using data from independent brokers and pricing services.
Option 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.
<PAGE>
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.
Futures transactions
In order to gain exposure to or protect itself from changes in the market,
the Fund may buy and sell stock index futures contracts traded on any
U.S. or foreign exchange. The Fund also may buy or write put and call
options on these futures contracts. Risks of entering into futures
contracts and related options include the possibility that there may be
an illiquid market and that a change in the value of the contract or
option may not correlate with changes in the value of the underlying
securities.
Upon entering into a futures contract, the Fund is required to deposit
either cash or securities in an amount (initial margin) equal to a
certain percentage of the contract value. Subsequent payments (variation
margin) are made or received by the Fund each day. The variation margin
payments are equal to the daily changes in the contract value and are
recorded as unrealized gains and losses. The Fund recognizes a realized
gain or loss when the contract is closed or expires.
Foreign currency translations and
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. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected
as a component of such gains or losses. In the statement of operations,
net realized gains or losses from foreign currency transactions may
arise from sales of foreign currency, closed forward contracts, exchange
gains or losses realized between the trade date and settlement dates on
securities transactions, and other translation gains or losses on
dividends, interest income and foreign withholding taxes.
<PAGE>
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.
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.
<PAGE>
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
Effective March 20, 1995, when the Fund began offering multiple classes
of shares, the Fund entered into agreements with AEFC for managing its
portfolio, providing administrative services and serving as transfer agent
as follows: Under its Investment Management Services Agreement, AEFC
determines which securities will be purchased, held or sold.
The management fee is a percentage of the Fund's average daily net assets
in reducing percentages from 0.8% to 0.675% annually. 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 $35,005
for the six months ended Sept. 30, 1995.
Under an Administrative Services Agreement, the Fund pays AEFC for
administration and accounting services at a percentage of the Fund's
average daily net assets in reducing percentages from 0.06% to 0.035%
annually.
Under a separate Transfer Agency Agreement, AEFC maintains shareholder
accounts and records. The Fund pays AEFC an annual fee per shareholder
account for this services as follows:
o Class A $15
o Class B $16
o Class Y $15
Also effective March 20, 1995, the Fund entered into agreements with American
Express Financial Advisors Inc. for distribution and shareholder servicing-
related services as follows: Under a Plan and Agreement of Distribution, the
Fund pays a distribution fee at an annual rate of 0.75% of the Fund's average
daily net assets attributable to Class B shares for distribution-related
services.
Under a Shareholder Service Agreement, the Fund pays a fee for service
provided to shareholders by financial advisors and other servicing agents.
The fee is calculated at a rate of 0.175% of the Fund's average daily net
assets attributable to Class A and Class B shares.
AEFC will assume and pay any expenses (except taxes and brokerage
commissions) that exceed the most restrictive applicable state expense
limitation.
Sales charges by American Express Financial Advisors for distributing Fund
shares were $66,520 for Class A and $35 for Class B for the six months ended
Sept. 30, 1995. The Fund also pays custodian fees to American Express Trust
Company, an affiliate of AEFC.
<PAGE>
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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 $139 for the six months
ended Sept. 30, 1995.
______________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $24,194,246 and $29,766,137, respectively,
for the six months ended Sept. 30, 1995. Realized gains and losses are
determined on an identified cost basis.
Brokerage commissions paid to brokers affiliated with AEFC were $2,000 for
the six months ended Sept. 30, 1995.
______________________________________________________________________________
4. Foreign currency contracts
At Sept. 30, 1995, 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 $1,750 on this contract is included
in the accompanying financial statements. The terms of the open contract
are as follows:
<TABLE>
<CAPTION>
Exchange date Currency to be Currency to be Unrealized
delivered received appreciation
______________________________________________________________________________
<S> <C> <C> <C>
Oct. 12, 1995 433,598 585,000 $1,750
U.S. DollarCanadian Dollar
/TABLE
<PAGE>
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5. Capital share transactions
Transactions in shares of capital stock for the periods indicated are as
follows:
<TABLE>
<CAPTION>
_____________________________________________________________________________
Six months ended Sept. 30, 1995
Class A Class B Class Y
_____________________________________________________________________________
<S> <C> <C> <C>
Sold 5,284,818 133,030 120
Issued for reinvested 2 -- --
distributions
Redeemed (6,693,818) (60,063) --
____________________________________________________________________________
Net increase (decrease) (1,408,998) 72,967 120
____________________________________________________________________________
Year ended March 31, 1995
Class A Class B* Class Y*
_____________________________________________________________________________
Sold 11,024,627 5,190 3
Issued for reinvested 39,672 -- --
distributions
Redeemed (10,809,372) -- --
_____________________________________________________________________________
Net increase 254,927 5,190 3
_____________________________________________________________________________
*Inception date was March 20, 1995.
______________________________________________________________________________
</TABLE>
<PAGE>
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6. Capital loss carryover
For federal income tax purposes, the Fund has a capital loss carryover
of approximately $16,788,000 at Sept. 30, 1995 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 realized
capital gain until the available capital loss carryover has been offset
or expires.
_____________________________________________________________________________
7. Lending of portfolio securities
At Sept. 30, 1995, securities valued at $8,001,300 were on loan to brokers.
For collateral, the Fund received $3,634,000 in cash and U.S. government
securities valued at $4,478,729. Income from securities lending amounted
to $31,629 for the six months ended Sept. 30, 1995. 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.
<PAGE>
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<TABLE>
<CAPTION>
8. Financial highlights
The table below shows certain important financial information for evaluating the Fund's results.
Fiscal period ended March 31,
Per share income and capital changes*
Class A Class B Class Y
____________________________________________ _______________ ______________
1995*** 1995 1994 1993 1992 1991 1995*** 1995** 1995*** 1995**
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, $7.99 $8.44 $6.00 $5.15 $5.40 $6.98 $7.99 $7.68 $7.99 $7.62
beginning of period
Income from investment operations:
Net investment income (.04) .04 .04 .04 .06 .12 (.05) .01 (.04) --
(loss)
Net gains (losses) 1.50 (.45) 2.44 .84 (.24) (1.57) 1.47 .30 1.50 .37
(both realized and unrealized)
Total from investment 1.46 (.41) 2.48 .88 (.18) (1.45) 1.42 .31 1.46 .37
operations
Less distributions:
Dividends from net -- (.04) (.04) (.03) (.07) (.13) -- -- -- --
investment income
Net asset value, $9.45 $7.99 $8.44 $6.00 $5.15 $5.40 $9.41 $7.99 $9.45 $7.99
end of period
Ratios/supplemental data
_____________________________________________ _______________ ______________
1995*** 1995 1994 1993 1992 1991 1995*** 1995** 1995*** 1995**
Net assets, end of period $72 $72 $74 $53 $53 $68 $1 $-- $-- $--
(in millions)
Ratio of expenses to 1.82%+ 1.61% .51% 1.79% 1.59% 1.48% 2.56%+ .08% 1.66%+ --%****
average daily net assets
Ratio of net income (loss) (.94%)+ .31% .46% .86% .64% 1.95% (1.69%)+ .28% (.83)%+ --%****
to average daily net assets
Portfolio turnover rate 34% 37% 49% 19% 21% 54% 34% 37% 34% 37%
(excluding short-term
securities)
Total return++ 18.3% (4.9%) 41.3% 17.2% (3.3%) (20.8%) 17.8% 4.0% 18.3% 4.9%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Inception date. Period from March 20, 1995 to March 31, 1995.
***Six months ended Sept. 30, 1995 (Unaudited).
****Ratio of expenses and net investment income to average daily net assets is not presented
for Class Y as only three shares were outstanding during the period.
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
/TABLE
<PAGE>
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<TABLE>
<CAPTION>
Investments in securities
IDS Precious Metals Fund, Inc.
Sept. 30, 1995 (Unaudited)
(Percentages represent value of
investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (101.4%)(c)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Australia (21.0%)
Acacia Resources 1,500,000 (b) $ 2,890,500
Asia Pacific Resources 125,000 (b) 441,860
Golden Shamrock Mines 4,000,000 (b) 2,536,000
Plutonic Resoures 600,000 3,105,600
Poseidon Gold 386,703 721,588
Ranger Minerals 200,000 471,400
Sons of Gwalia 900,000 4,556,700
South Pacific Resources 1,000 (b) 2,828
Wiluna Mines 500,000 (b) 521,000
____________
Total 15,247,476
_____________________________________________________________________________________________________________________________
North/South America (70.6%)
Baja Gold 300,000 (b) 424,185
Barrick Gold 225,000 5,821,875
Bre X Minerals 166,600 (b) 2,231,664
Cambior 250,000 2,651,163
Canarc Resources 1,000,000 (b) 1,153,480
Carson Gold 720,200 (b) 552,040
Crown Resources 100,000 (b) 512,500
Dayton Mining 1,125,000 (b,d) 4,604,648
Diamond Fields Resources 60,000 (b) 982,325
Euro-Nevada Mining 40,000 1,533,023
First Dynasty Mines 150,000 (b) 837,209
First Mississippi 25,000 996,875
First Mississippi Gold 75,000 (b,d) 1,640,625
Francisco Gold 200,000 (b) 692,092
Franco Nevada 15,000 898,605
Freeport McMoRan Copper & Gold 225,000 (b) 5,765,625
Goldcorp 50,000 493,023
Greenstone Resources 100,000 (b) 253,023
High River Gold Mines 200,000 (b) 461,394
Intl Gold Resources 900,000 (b) 3,432,555
Kinross Gold 80,000 (b) 684,650
Metallica Resources 300,000 (b) 625,116
Newmont Gold 25,000 1,012,500
Pegasus Gold 100,000 (d) 1,362,500
Pioneer Group 10,000 273,750
Placer Dome 25,000 656,250
Romarco Minerals 300,000 (b) 457,674
See accompanying notes to investments in securities.<PAGE>
PAGE
San Fernando Mining 100,000 163,720
Santa Fe Pacific 200,000 2,525,000
Stillwater Mining 170,454 (b,e) 3,536,920
Tiomin Resources 300,000 (b,e) 478,884
TVX Gold 500,000 (b) 3,441,860
___________
Total 51,156,753
_____________________________________________________________________________________________________________________________
South Africa (8.4%)
Driefontein Consolidated ADR 100,000 (b,d) 1,362,500
Free State Consolidated Gold ADR 50,000 568,750
Kloof Gold Mining ADR 100,000 1,112,500
Loraine Gold Mines 250,000 (b) 855,750
Western Area Gold ADR 75,420 1,305,709
Western Deep Levels ADR 25,000 884,375
____________
Total 6,089,584
_____________________________________________________________________________________________________________________________
United Kingdom (1.4%)
Ashanti Gold 50,000 (e) 1,008,750
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $57,095,747) $73,502,563
_____________________________________________________________________________________________________________________________
Other (--%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Carson Gold
Warrants 750,000 (b,g) --
Dayton Mining
Warrants 292,500 (b,g) --
_____________________________________________________________________________________________________________________________
Total other
(Cost: $--) $ --
_____________________________________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE
<TABLE>
<CAPTION>
Short-term securities (3.6%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (1.9%)
Federal Natl Mtge Assn
Disc Note
10-04-95 5.61% $1,400,000 $ 1,399,129
_____________________________________________________________________________________________________________________________
Commercial paper (1.7%)
Mobil Australia Finance
Delaware
10-10-95 5.76 700,000 (f) 698,886
Penney (JC) Funding
10-06-95 5.77 500,000 499,522
___________
Total 1,198,408
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $2,597,537) $ 2,597,537
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $59,693,284)(h) $76,100,100
_____________________________________________________________________________________________________________________________
<PAGE>
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.
(d) Security is partially on loan. See Note 7 to the financial statements.
(e) Represents a security sold under Rule 144A, which is exempt from registration under the Securities
Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the board of
directors.
(f) Commercial paper sold within terms of a private placement memorandum, exempt from regristration under
Section 4(2) of the Securities Act of 1933, as amended, and may be sold only to dealers in that program
or other "accredited investors." This security has been determined to be liquid under guidelines established
by the board of directors.
(g) Presently negligible market value.
(h) At Sept. 30, 1995, the cost of securities for federal income tax purposes was
approximately $59,693,000 and the approximate aggregate gross unrealized appreciation
and depreciation based on that cost was:
Unrealized appreciation $20,471,000
Unrealized depreciation (4,064,000)
___________________________________________________________________________________________
Net unrealized appreciation $16,407,000
___________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
Directors and officers
Directors and officers of the Fund
_____________________________________________________________________
President and interested director
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent directors
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for
Public Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Reader's Digest Association, Inc.
Lewis W. Lehr
Former chairman and chief executive officer,
Minnesota Mining and Manufacturing Company (3M).
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board and chief executive officer, The Valspar Corporation.
_____________________________________________________________________
Interested directors who are officers and/or employees of American
Express Financial Corporation.
William H. Dudley
Exective vice president, AEFC.
David R. Hubers
President and chief executive officer, AEFC.
John R. Thomas
Senior vice president, AEFC.
_____________________________________________________________________
Officers who are officers and/or employees of American Express
Financial Corporation
Peter J. Anderson
Vice President of all funds in the IDS MUTUAL FUND GROUP.
Melinda S. Urion
Treasurer of all funds in the IDS MUTUAL FUND GROUP.
___________________________________________________________________
Other officer
Leslie L. Ogg
Vice president general Counsel and secretary of all funds in
the IDS MUTUAL FUND GROU.<PAGE>
PAGE
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation 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 deposit (CDs) and
other bank securities.
(icon of) piggy bank
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
seek 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 seek
high current income. Secondary objective is capital growth.
(icon of) cornucopia<PAGE>
PAGE
IDS 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 Selective Fund
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
Invests primarily in securities issued or guaranteed as to the timely
payment of 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
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
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed<PAGE>
PAGE
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
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
Invests mainly in bonds and notes of state or local government
units, with at least 75% 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
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The fund may invest up to 20%
of its assets in the U.S. market.
(icon of) three flags
IDS Managed Retirement Fund
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
IDS Equity Select Fund
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 our 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
Invests in common stocks of companies representing many
sectors of the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) three growing flowers
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
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 seek 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
Growth investments
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
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy Aggressive 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 Growth Fund
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 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
IDS New Dimensions Fund
Invests primarily in 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
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
<PAGE>
PAGE
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against inflation.
IDS Precious Metals Fund
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 financial
planner or writing to American Express Shareholder Service, P.O. Box 534,
Minneapolis, MN 55440-0534. Read it carefully before you invest or send money.
<PAGE>
PAGE
Quick telephone reference
American Express 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
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchTone 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
AMERICAN EXPRESS FINANCIAL ADVISORS
IDS Precious Metals Fund
IDS Tower 10
Minneapolis, MN 55440-0010
