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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________
FORM 10-Q
__________________
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
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SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
__________________
Commission file number 0-18441
UNITED STATES GOLD TRUST
Incorporated pursuant to the Laws of New York State
__________________
Internal Revenue Service -- Employer Identification No. 68-0146329
625 Second Street, Suite 102, Petaluma, California 94952
(707) 778-1000
__________________
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
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<PAGE>
UNITED STATES GOLD TRUST
Part I -- FINANCIAL INFORMATION
Item 1. Financial Statements
The following financial statements of United States Gold Trust
(the "Trust") are included in this report.
Unaudited Statements of Assets and Liabilities at
September 30, 1996 and audited Statements of Assets and
Liabilities at December 31, 1995.
Unaudited Statements of Operations for the three months ended
September 30, 1996 and 1995 and for the nine months ended
September 30, 1996 and 1995.
Unaudited Statements of Changes in Net Assets for the nine
months ended September 30, 1996 and 1995.
Unaudited Selected Per Unit Data and Ratios for the nine
months ended September 30, 1996 and 1995.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
Dealer prices for wholesale transactions of gold bullion
generally decreased approximately 1% during the three months
ended September 30, 1996. Net assets of the Trust's Bullion
Portfolio decreased approximately 5% from $2,356,192 to
$2,243,599, the result of the redemption of Units and the
decrease in value of gold bullion.
Dealer prices for wholesale transactions of American Eagle
gold coins generally decreased approximately 1% during the
same period. Net assets of the Trust's Coin Portfolio
decreased approximately 2% from $3,997,559 to $3,908,901, the
result of the redemption of Units and the decrease in
value of American Eagle gold coins.
Dealer prices for wholesale transactions of gold bullion
generally decreased approximately 2% during the nine months
ended September 30, 1996. Net assets of the Trust's Bullion
Portfolio decreased approximately 12% from $2,540,829 to
$2,243,599, the result of the redemption of Units and the
decrease in value of gold bullion.
Dealer prices for wholesale transactions of American Eagle
gold coins generally decreased approximately 2% during the
same period. Net assets of the Trust's Coin Portfolio
decreased approximately 11% from $4,396,853 to $3,908,901, the
result of the redemption of Units and the decrease in value of
American Eagle gold coins.
Additional deposits of gold bullion or of American Eagle gold
coins into the Trust by the Sponsor do not affect a
Portfolio's net asset value per Unit or gold per Unit.
The annualized ratios of expenses to average net assets and
net investment loss to average net assets during the three
months ended September 30, 1996 and 1995 and the nine months
ended September 30, 1996 and 1995 were .35% for each Portfolio
after amounts waived or absorbed by the Sponsor. The Trust has
engaged in no activities other than the investment in gold
bullion and coins, the issuance and redemption of Units and
the payment of its expenses.
<PAGE>
UNITED STATES GOLD TRUST
Part II -- OTHER INFORMATION
Item 1. Legal Proceedings
Inapplicable
Item 2. Changes in Securities
Inapplicable
Item 3. Defaults Upon Senior Securities
Inapplicable
Item 4. Submission of Matters to a Vote of Security Holders
Inapplicable
Item 5. Other Information
Inapplicable
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits: None
(b) Reports on Form 8-K: None
<PAGE>
Financial Statements
<PAGE>
UNITED STATES GOLD TRUST
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Bullion Coin
Portfolio Portfolio
------------- -------------
<S> <C> <C>
ASSETS
Investments at value (based on bid side evaluation)
(cost: $2,092,158 and $3,691,740, respectively)
Gold Bullion............................................................. $ 2,169,243 $ --
American Eagle Gold Coins................................................ -- 3,859,998
Cash....................................................................... 80,837 60,145
----------- -----------
Total Assets 2,250,080 3,920,143
LIABILITIES
Payable to Sponsor......................................................... 3,539 6,146
Payable to Trustee......................................................... 1,875 3,073
Other accrued liabilities.................................................. 1,067 2,023
----------- -----------
Total Liabilities 6,481 11,242
----------- -----------
NET ASSETS $ 2,243,599 $ 3,908,901
=========== ===========
INTEREST OF UNITHOLDERS
Outstanding Units.......................................................... 151,599 259,516
=========== ===========
Redemption Price Per Unit (based on bid side evaluation)................... $ 14.80 $ 15.06
=========== ===========
Calculation of Offering Price per Unit:
Aggregate offering side evaluation....................................... $ 2,263,194 $ 3,952,725
=========== ===========
Divided by outstanding Units............................................. $ 14.93 $ 15.23
Plus sales charge of 1.96% of Offering Price
(2% of net amount invested)............................................ .30 .31
----------- -----------
Offering Price per Unit.................................................... $ 15.23 $ 15.54
=========== ===========
</TABLE>
<PAGE>
UNITED STATES GOLD TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1995
<TABLE>
<CAPTION>
Bullion Coin
Portfolio Portfolio
------------- -------------
<S> <C> <C>
ASSETS
Investments at value (based on bid side evaluation)
(cost: $2,384,540 and $4,163,696, respectively)
Gold Bullion............................................................. $ 2,530,281 $ --
American Eagle Gold Coins................................................ -- 4,426,671
Cash....................................................................... 21,408 --
----------- -----------
Total Assets 2,551,689 4,426,671
LIABILITIES
Bank Overdraft............................................................. -- 11,805
Payable to Sponsor......................................................... 5,435 8,938
Payable to Trustee......................................................... 2,718 4,469
Other accrued liabilities.................................................. 2,707 4,606
----------- -----------
Total Liabilities 10,860 29,818
----------- -----------
NET ASSETS $ 2,540,829 $ 4,396,853
=========== ===========
INTEREST OF UNITHOLDERS
Outstanding Units.......................................................... 167,595 284,859
=========== ===========
Redemption Price Per Unit (based on bid side evaluation)................... $ 15.16 $ 15.44
=========== ===========
Calculation of Offering Price per Unit:
Aggregate offering side evaluation....................................... $ 2,557,226 $ 4,446,001
=========== ===========
Divided by outstanding Units............................................. $ 15.26 $ 15.61
Plus sales charge of 1.96% of Offering Price
(2% of net amount invested)............................................ .30 .31
----------- -----------
Offering Price per Unit.................................................... $ 15.56 $ 15.92
=========== ===========
</TABLE>
<PAGE>
UNITED STATES GOLD TRUST
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended September 30
---------------------------------------------------------------------------
1996 1995
---------------------------------- -----------------------------------
Bullion Coin Bullion Coin
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Expenses:
Trustee fees..................... $ 625 $ 976 $ 675 $ 1,076
Sponsor fees..................... 1,122 1,952 1,350 2,152
Gold storage fees................ 649 1,155 859 1,325
Professional fees................ 1,125 1,125 1,125 1,125
Other............................ 125 125 125 125
-------- --------- --------- ---------
Total expenses 3,646 5,333 4,134 5,803
Less: amount waived or
absorbed by Sponsor........... 1,611 1,790 1,661 1,857
-------- --------- --------- ---------
Net investment loss (2,035) (3,543) (2,473) (3,946)
Net realized and unrealized
gain (loss) on investments:
Net realized gain (loss)
on investments................... - 2,270 14,332 (10,483)
Net change in unrealized
appreciation (depreciation)
on investments................... (25,358) (23,030) (48,085) 7,501
-------- --------- --------- ---------
Net realized and unrealized
loss on investments (25,358) (20,760) (33,753) (2,982)
-------- --------- --------- ---------
Net decrease in net assets
resulting from operations $(27,393) $ (24,303) $ (36,226) $ (6,928)
======== ========= ========= =========
</TABLE>
<PAGE>
UNITED STATES GOLD TRUST
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended September 30
---------------------------------------------------------------------------
1996 1995
---------------------------------- -----------------------------------
Bullion Coin Bullion Coin
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Expenses:
Trustee fees..................... $ 1,875 $ 3,073 $ 2,087 $ 3,404
Sponsor fees..................... 3,539 6,146 4,174 6,808
Gold storage fees................ 2,176 3,749 2,721 4,303
Professional fees................ 3,375 3,375 3,375 3,375
Other............................ 375 375 375 375
-------- --------- --------- ---------
Total expenses 11,340 16,718 12,732 18,265
Less: amount waived or
absorbed by Sponsor........... 4,919 5,567 5,016 5,679
-------- --------- --------- ---------
Net investment loss (6,421) (11,151) (7,716) (12,586)
Net realized and unrealized
gain (loss) on investments:
Net realized gain
on investments................... 21,677 19,497 17,671 7,137
Net change in unrealized
appreciation (depreciation)
on investments................. (68,656) (94,717) (10,129) 9,719
-------- --------- --------- ---------
Net realized and unrealized
gain (loss) on investments (46,979) (75,220) 7,542 16,856
-------- --------- --------- ---------
Net increase (decrease) in net
assets resulting
from operations $(53,400) $ (86,371) $ (174) $ 4,270
======== ========= ========= =========
</TABLE>
<PAGE>
UNITED STATES GOLD TRUST
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended September 30
-------------------------------------------------------------------------
1996 1995
-------------------------------- -----------------------------------
Bullion Coin Bullion Coin
Portfolio Portfolio Portfolio Portfolio
----------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
From Operations
Net investment loss.............. $ (6,421) $ (11,151) $ (7,716) $ (12,586)
Net realized gain
on investments................. 21,677 19,497 17,671 7,137
Net change in unrealized
appreciation (depreciation)
on investments................. (68,656) (94,717) (10,129) 9,719
---------- ---------- ---------- ----------
Net increase (decrease) in net
assets resulting from operations (53,400) (86,371) (174) 4,270
From Unit Transactions
Issuance of 0; 0; 0 and
5,178 Units respectively ...... - - - 79,592
Redemption of 15,996; 25,343;
22,216 and 51,174 Units,
respectively .................. (243,830) (401,581) (336,091) (788,616)
---------- ---------- ---------- ----------
Net decrease in net
assets from Unit transactions (243,830) (401,581) (336,091) (709,024)
---------- ---------- ---------- ----------
Net decrease in net assets (297,230) (487,952) (336,265) (704,754)
Net assets at beginning
of period 2,540,829 4,396,853 3,044,340 5,121,347
---------- ---------- ---------- ----------
Net assets at end of period
(including accumulated net
investment loss of $66,844;
$96,069; $58,111 and $81,009,
respectively) $2,243,599 $3,908,901 $2,708,075 $4,416,593
========== ========== ========== ==========
</TABLE>
<PAGE>
UNITED STATES GOLD TRUST
SELECTED PER UNIT DATA AND RATIOS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended September 30
--------------------------------------------------------------------------
1996 (a)(b) 1995 (a)(b)
--------------------------------- -----------------------------------
Bullion Coin Bullion Coin
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value at beginning
of period $ 15.16 $ 15.44 $ 15.06 $ 15.30
Net investment loss................. (.04) (.04) (.04) (.04)
Net realized and unrealized
gain (loss) on investments ....... (.32) (.34) .03 .03
-------- -------- -------- --------
Decrease in net asset value (.36) (.38) (.01) (.01)
-------- -------- -------- --------
Net asset value at end of period $ 14.80 $ 15.06 $ 15.05 $ 15.29
======== ======== ======== ========
Ratios to average net assets:
Expenses (c)(d)..................... .35% .35% .35% .35%
Net investment loss (c)(d).......... (.35%) (.35%) (.35%) (.35%)
Investment turnover rate (d)........ None None None 2.22%
Number of Units outstanding
at end of period ................. 151,599 259,516 179,957 288,792
Net assets at end of period
(in thousands).................... $ 2,244 $ 3,909 $ 2,708 $ 4,417
<FN>
Note:
(a) The selected per unit data was calculated using average net assets
during the period.
(b) The Trust's sole investment activity was to hold Gold, and the Trust had
no income.
(c) During the nine months ended September 30, 1996 and 1995, the Sponsor
reimbursed expenses totaling $4,919 and $5,016 for the Bullion Portfolio
and $5,567 and $5,679 for the Coin Portfolio, respectively. Absent the
foregoing, the ratio of expenses to average net assets and the ratio of
net investment loss to average net assets would have increased to .62%
and .58% for the Bullion Portfolio and .53% and .51% for the Coin
Portfolio, respectively, for the periods then ended.
(d) Computed on an annualized basis.
</FN>
</TABLE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
UNITED STATES GOLD TRUST
________________________________________________
(Registrant)
By BULLION SECURITY CORPORATION
its Sponsor
Dated: November 7, 1996 By TERRY COXON
____________________________________________
Terry Coxon, President
Dated: November 7, 1996 By MICHAEL JOSEPH CUGGINO
____________________________________________
Michael Joseph Cuggino, Treasurer
(principal financial and accounting officer)
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> BULLION PORTFOLIO
<NUMBER> 001
<S> <C>
<MULTIPLIER> 1
<CURRENCY> 1
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 2,092,158
<INVESTMENTS-AT-VALUE> 2,169,243
<RECEIVABLES> 0
<ASSETS-OTHER> 80,837
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,250,080
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,481
<TOTAL-LIABILITIES> 6,481
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 151,599
<SHARES-COMMON-PRIOR> 157,254
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 2,243,599
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 2,035
<NET-INVESTMENT-INCOME> (2,035)
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> (25,358)
<NET-CHANGE-FROM-OPS> (27,393)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> (85,200)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (112,593)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,122
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,646
<AVERAGE-NET-ASSETS> 2,446,250
<PER-SHARE-NAV-BEGIN> 14.98
<PER-SHARE-NII> (.01)
<PER-SHARE-GAIN-APPREC> (.17)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.80
<EXPENSE-RATIO> .004
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> COIN PORTFOLIO
<NUMBER> 002
<S> <C>
<MULTIPLIER> 1
<CURRENCY> 1
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 3,691,740
<INVESTMENTS-AT-VALUE> 3,859,998
<RECEIVABLES> 0
<ASSETS-OTHER> 60,145
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,920,143
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 11,242
<TOTAL-LIABILITIES> 11,242
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 259,516
<SHARES-COMMON-PRIOR> 263,725
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 3,908,901
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 3,543
<NET-INVESTMENT-INCOME> (3,543)
<REALIZED-GAINS-CURRENT> 2,270
<APPREC-INCREASE-CURRENT> (23,030)
<NET-CHANGE-FROM-OPS> (24,303)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> (64,355)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (88,658)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,952
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,333
<AVERAGE-NET-ASSETS> 4,248,178
<PER-SHARE-NAV-BEGIN> 15.16
<PER-SHARE-NII> (.01)
<PER-SHARE-GAIN-APPREC> (.09)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.06
<EXPENSE-RATIO> .004
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
