<PAGE> PAGE 1
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<PAGE> PAGE 2
012 C040001 7777
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
015 E040028 X
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<PAGE> PAGE 6
015 A000039 THE HONGKONG & SHANGHAI BANKING CORP. LTD
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<PAGE> PAGE 7
015 C010052 SANTIAGO
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<PAGE> PAGE 8
020 B000002 13-5674085
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022 C000002 995172
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022 C000005 605343
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022 C000006 584689
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<PAGE> PAGE 9
022 A000007 BEAR STEARNS & CO INC
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022 B000008 94-1687665
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022 D000008 9759
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022 B000009 94-1302123
022 C000009 374532
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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SIGNATURE KIMBERLEY MONASTERIO
TITLE ASST TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN GOLD FUND JULY 31, 1996 ANNUAL REPORT AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 011
<NAME> FRANKLIN GOLD FUND - CLASS I
<S> <C>
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<FISCAL-YEAR-END> JUL-31-1996
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<ACCUMULATED-NII-CURRENT> 649,709
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 20,985,414
<OVERDISTRIBUTION-GAINS> 0
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<NET-ASSETS> 377,009,104
<DIVIDEND-INCOME> 6,131,860
<INTEREST-INCOME> 1,562,100
<OTHER-INCOME> 0
<EXPENSES-NET> (3,832,294)
<NET-INVESTMENT-INCOME> 3,861,666
<REALIZED-GAINS-CURRENT> 41,757,308
<APPREC-INCREASE-CURRENT> (38,799,755)
<NET-CHANGE-FROM-OPS> 6,819,219
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<DISTRIBUTIONS-OF-INCOME> (3,188,716)
<DISTRIBUTIONS-OF-GAINS> (12,724,819)
<DISTRIBUTIONS-OTHER> 0
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<NUMBER-OF-SHARES-REDEEMED> (27,721,440)
<SHARES-REINVESTED> 923,993
<NET-CHANGE-IN-ASSETS> (18,061,088)
<ACCUMULATED-NII-PRIOR> (1,511,778)
<ACCUMULATED-GAINS-PRIOR> (6,396,001)
<OVERDISTRIB-NII-PRIOR> 0
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<GROSS-EXPENSE> 3,832,294
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<PER-SHARE-NAV-BEGIN> 15.070
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<PER-SHARE-GAIN-APPREC> .011
<PER-SHARE-DIVIDEND> (.126)
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<RETURNS-OF-CAPITAL> 0
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN GOLD FUND JULY 31, 1996 ANNUAL REPORT AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATMENTS.
</LEGEND>
<SERIES>
<NUMBER> 012
<NAME> FRANKLIN GOLD FUND - CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1996
<PERIOD-END> JUL-31-1996
<INVESTMENTS-AT-COST> 299,860,566
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<RECEIVABLES> 16,690,694
<ASSETS-OTHER> 2,928,037
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 377,612,939
<PAYABLE-FOR-SECURITIES> 0
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<SENIOR-EQUITY> 0
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<OVERDISTRIBUTION-NII> 0
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<APPREC-INCREASE-CURRENT> (38,799,755)
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<NUMBER-OF-SHARES-SOLD> 907,471
<NUMBER-OF-SHARES-REDEEMED> (235,465)
<SHARES-REINVESTED> 10,276
<NET-CHANGE-IN-ASSETS> (18,061,088)
<ACCUMULATED-NII-PRIOR> (1,511,788)
<ACCUMULATED-GAINS-PRIOR> (6,396,001)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,024,845
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,832,294
<AVERAGE-NET-ASSETS> 396,320,012
<PER-SHARE-NAV-BEGIN> 15.050
<PER-SHARE-NII> .120
<PER-SHARE-GAIN-APPREC> (.015)
<PER-SHARE-DIVIDEND> (.030)
<PER-SHARE-DISTRIBUTIONS> (.515)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.610
<EXPENSE-RATIO> 1.740
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Trustees
of Franklin Gold Fund:
In planning and performing our audit of the financial statements
and financial highlights of the funds comprising the Franklin
"Gold Fund for the year ended July 31, 1996, we considered"
"its internal control structure, including procedures for"
"safeguarding securities, in order to determine our auditing"
procedures for the purpose of expressing our opinion on the
financial statements and financial highlights and to comply with
"the requirements of Form N-SAR, not to provide assurance on the"
internal control structure.
The management of the Franklin Gold Fund is responsible for
establishing and maintaining an internal control structure.
"In fulfilling this responsibility, estimates and judgments by"
management are required to assess the expected benefits and related
costs of internal control structure policies and procedures. Two
of the objectives of an internal control structure are to provide
"management with reasonable, but not absolute, assurance that assets"
are safeguarded against loss from unauthorized use or disposition
and that transactions are executed in accordance with management's
authorization and recorded properly to permit preparation of
financial statements in conformity with generally accepted
accounting principles.
"Because of inherent limitations in any internal control structure, "
"errors or irregularities may occur and not be detected. Also, "
projection of any evaluation of the structure to future periods
is subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the internal control structure would not
necessarily disclose all matters in the internal control structure
that might be material weaknesses under standards established by
the American Institute of Certified Public Accountants. A material
weakness is a condition in which the design or operation of the
specific internal control structure elements does not reduce to a
relatively low level the risk that errors or irregularities in
amounts that would be material in relation to the financial
statements and financial highlights being audited may occur and
not be detected within a timely period by employees in the normal
"course of performing their assigned functions. However, we noted"
"no matters involving the internal control structure, including"
"procedures for safeguarding securities, that we consider to be"
"material weaknesses, as defined above, as of July 31, 1996. "
This report is intended solely for the information and use of
management of the Franklin Gold Fund and the Securities
and Exchange Commission.
S\Coopers & Lybrand L.L.P.
"San Francisco, California "
5-Sep-96
