<PAGE> PAGE 1
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<PAGE> PAGE 2
012 A000001 FRANKLIN/TEMPLETON INVESTOR SERVICES, INC.
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015 E040002 X
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015 E040003 X
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<PAGE> PAGE 3
015 B000009 S
015 C010009 TORONTO
015 D010009 CANADA
015 E040009 X
015 A000010 DELETE
015 A000011 DELETE
015 A000012 DELETE
015 A000013 DELETE
015 A000014 DELETE
015 A000015 DEN DANSKE BANK
015 B000015 S
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015 D010015 DENMARK
015 E040015 X
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015 D010016 BELGIUM
015 E040016 X
015 A000017 DELETE
015 A000018 MERITA BANK PLC.
015 B000018 S
015 C010018 HELSINKI
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015 E040018 X
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015 B000019 S
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015 A000023 DELETE
015 A000024 THE HONGKONG & SHANGHAI BANKING CORP. LTD.
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015 A000026 DELETE
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<PAGE> PAGE 4
015 B000028 S
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015 D010028 IRELAND
015 E040028 X
015 A000029 DELETE
015 A000030 DELETE
015 A000031 DELETE
015 A000032 BANK OF TOKYO MITSUBISHI, LTD.
015 B000032 S
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015 D010032 JAPAN
015 E040032 X
015 A000033 DELETE
015 A000034 DELETE
015 A000035 DELETE
015 A000036 BANQUE INTERNATIONALE A LUXEMBOURG
015 B000036 S
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015 A000038 THE HONGKONG BANK MALAYSIA BERHAD
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015 E040038 X
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015 A000040 DELETE
015 A000041 DELETE
015 A000042 MEES PIERSON N.V.
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015 D010042 NETHERLANDS
015 E040042 X
015 A000043 DELETE
015 A000044 AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD.
015 B000044 S
015 C010044 WELLINGTON
015 D010044 NEW ZEALAND
015 E040044 X
015 A000045 DELETE
015 A000046 DELETE
015 A000047 STANDARD CHARTERED BANK
015 B000047 S
015 C010047 KARACHI
015 D010047 PAKISTAN
015 E040047 X
<PAGE> PAGE 5
015 A000048 CITIBANK, N.A.
015 B000048 S
015 C010048 LIMA
015 D010048 PERU
015 E040048 X
015 A000049 THE HONGKONG & SHANGHAI BANKING CORP.
015 B000049 S
015 C010049 MANILA
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015 A000051 BANCO COMERCIAL PORTUGUES, S.A.
015 B000051 S
015 C010051 LISBON
015 D010051 PORTUGAL
015 E040051 X
015 A000052 UNITED OVERSEAS BANK LIMITED
015 B000052 S
015 C010052 SINGAPORE
015 D010052 SINGAPORE
015 E040052 X
015 A000053 DELETE
015 A000054 DELETE
015 A000055 STANDARD BANK OF SOUTH AFRICA LTD.
015 B000055 S
015 C010055 JOHANNESBURG
015 D010055 SOUTH AFRICA
015 E040055 X
015 A000056 DELETE
015 A000057 BANCO BILBAO VIZCAYA
015 B000057 S
015 C010057 MADRID
015 D010057 SPAIN
015 E040057 X
015 A000058 STANDARD CHARTERED BANK
015 B000058 S
015 C010058 COLOMBO
015 D010058 SRI LANKA
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015 A000059 DELETE
015 A000060 SKANDINAVISKA ENSKILDA BANKEN
015 B000060 S
015 C010060 STOCKHOLM
015 D010060 SWEDEN
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015 A000061 DELETE
015 A000062 UNION BANK OF SWITZERLAND
015 B000062 S
015 C010062 ZURICH
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<PAGE> PAGE 6
015 A000063 DELETE
015 A000064 STANDARD CHARTERED BANK
015 B000064 S
015 C010064 BANGKOK
015 D010064 THAILAND
015 E040064 X
015 A000065 DELETE
015 A000066 OSMANLI BANKASI A.S.
015 B000066 S
015 C010066 ISTANBUL
015 D010066 TURKEY
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015 A000067 THE BANK OF NEW YORK
015 B000067 S
015 C010067 LONDON
015 D010067 UNITED KINGDOM
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015 A000068 EUROMARKET-FIRST CHICAGO
015 B000068 S
015 C010068 LONDON
015 D010068 UNITED KINGDOM
015 E040068 X
015 A000069 DELETE
015 A000070 DELETE
015 A000071 STANBIC BANK ZAMBIA LTD.
015 B000071 S
015 C010071 LUSAKA
015 D010071 ZAMBIA
015 E040071 X
015 A000072 STANBIC BANK ZIMBABWE LTD.
015 B000072 S
015 C010072 HARARE
015 D010072 ZIMBABWE
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015 A000074 DELETE
015 A000075 DELETE
015 A000076 DELETE
015 A000077 DELETE
015 A000078 DELETE
015 A000079 DELETE
015 A000080 DELETE
015 A000081 DELETE
015 A000082 DELETE
015 A000083 DELETE
015 A000084 DELETE
015 A000085 DELETE
015 A000086 DELETE
015 A000087 EUROMARKET-CEDEL BANK, S.A.
015 B000087 S
015 C010087 LUXEMBOURG CITY
<PAGE> PAGE 7
015 D010087 LUXEMBOURG
015 E040087 X
018 000000 Y
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019 C000000 FRNKTEMGRP
020 A000001 LIPPER ANALYTICAL SECS CORP
020 B000001 13-2792478
020 C000001 22
020 A000002 NESBITT BURNS INC
020 B000002 13-2620737
020 C000002 18
020 A000003 MIDLAND WALWYN CAPITAL INC
020 B000003 13-5680570
020 C000003 17
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020 B000004 13-3036573
020 C000004 13
020 A000005 DAIN RAUSCHER INC
020 B000005 41-0212020
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020 A000006 BUNTING WARBURG
020 B000006 CANADA
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020 A000007 DONALD & CO SECURITIES
020 B000007 13-2864636
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020 B000008 13-3227945
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020 B000009 13-3364318
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020 A000010 DEUTSCHE MORGAN GRENFELL
020 B000010 13-2730828
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022 C000002 601792
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022 B000003 13-2518466
022 C000003 573425
022 D000003 0
022 A000004 CIBC WOOD GUNDY SECURITIES CORP.
022 B000004 13-3639028
<PAGE> PAGE 8
022 C000004 561861
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022 A000005 BARCLAYS CAPITAL GROUP, INC.
022 B000005 13-3551367
022 C000005 547649
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022 A000006 DRESDNER KLEINWORT BENSON, NORTH AMERICA, LLC
022 B000006 04-2442748
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022 C000007 490797
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022 B000008 13-3122275
022 C000008 467318
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022 B000009 13-3235334
022 C000009 427224
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022 A000010 BT ALEX BROWN, INC.
022 B000010 13-3311934
022 C000010 426303
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<PAGE> PAGE 9
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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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SIGNATURE LAURA FERGERSON
TITLE ASST TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE FRANKLIN
GOLD FUND JULY 31, 1998 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>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1998
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<INVESTMENTS-AT-VALUE> 183,889,427
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<OTHER-INCOME> 0
<EXPENSES-NET> (3,257,832)
<NET-INVESTMENT-INCOME> 2,588,383
<REALIZED-GAINS-CURRENT> (24,125,933)
<APPREC-INCREASE-CURRENT> (83,348,247)
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<NUMBER-OF-SHARES-REDEEMED> (58,064,574)
<SHARES-REINVESTED> 249,615
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<OVERDIST-NET-GAINS-PRIOR> (8,983,411)
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (3,257,832)
<AVERAGE-NET-ASSETS> 261,535,860
<PER-SHARE-NAV-BEGIN> 11.440
<PER-SHARE-NII> .100
<PER-SHARE-GAIN-APPREC> (3.960)
<PER-SHARE-DIVIDEND> (.100)
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE FRANKLIN
GOLD FUND JULY 31, 1998 ANNUAL REPORT AND IS QUALIFIED IN ITS
ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 012
<NAME> FRANKLIN GOLD FUND - CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JUL-31-1998
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<ACCUMULATED-NII-CURRENT> 37,682
<OVERDISTRIBUTION-NII> 0
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE FRANKLIN
GOLD FUND JULY 31, 1998 ANNUAL REPORT AND IS QUALIFIED IN ITS
ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 013
<NAME> FRANKLIN GOLD FUND - ADVISOR CLASS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 261,419,508
<INVESTMENTS-AT-VALUE> 183,889,427
<RECEIVABLES> 31,238,427
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 215,127,854
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,976,365
<TOTAL-LIABILITIES> 2,976,365
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 322,657,512
<SHARES-COMMON-STOCK> 290,108
<SHARES-COMMON-PRIOR> 280,883
<ACCUMULATED-NII-CURRENT> 37,682
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (33,013,624)
<ACCUM-APPREC-OR-DEPREC> (77,530,081)
<NET-ASSETS> 212,151,489
<DIVIDEND-INCOME> 4,034,938
<INTEREST-INCOME> 1,811,277
<OTHER-INCOME> 0
<EXPENSES-NET> (3,257,832)
<NET-INVESTMENT-INCOME> 2,588,383
<REALIZED-GAINS-CURRENT> (24,125,933)
<APPREC-INCREASE-CURRENT> (83,348,247)
<NET-CHANGE-FROM-OPS> (104,885,797)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (47,704)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,101,828
<NUMBER-OF-SHARES-REDEEMED> (3,095,800)
<SHARES-REINVESTED> 3,197
<NET-CHANGE-IN-ASSETS> (103,387,290)
<ACCUMULATED-NII-PRIOR> 142,947
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (8,983,411)
<GROSS-ADVISORY-FEES> (1,416,311)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (3,257,832)
<AVERAGE-NET-ASSETS> 261,535,860
<PER-SHARE-NAV-BEGIN> 11.430
<PER-SHARE-NII> .140
<PER-SHARE-GAIN-APPREC> (3.840)
<PER-SHARE-DIVIDEND> (.120)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.610
<EXPENSE-RATIO> .960
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
REPORT OF INDEPENDENT AUDITOR'S
To the Shareholders and Board of Trustees of the Franklin Gold
Fund
In planning and performing our audit of the financial statements
of the Franklin Gold Fund for the year ended July 31, 1998, we
considered its internal control, including controls over
safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements of Form N-
SAR, not to provide assurance on internal control.
The management of the Franklin Gold Fund is responsible for
establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required
to assess the expected benefits and related costs of controls.
Generally, controls that are relevant to an audit pertain to the
entity's objective of preparing financial statements for external
purposes that are fairly presented in conformity with generally
accepted accounting principles. Those controls include the
safeguarding of assets against unauthorized acquisition, use, or
disposition.
Because of inherent limitations in internal control, errors or
irregularities may occur and not be detected. Also, projection of
any evaluation of internal control 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 internal control would not necessarily
disclose all matters in internal control 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 any specific
internal control component 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 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 internal control, including
controls over safeguarding securities that we consider to be
material weaknesses as defined above as of July 31, 1998.
This report is intended solely for the information and use of
management and the Securities and Exchange Commission.
S\PricewaterhouseCoopers LLP
San Francisco,California
September 4, 1998
