UNITED STATES GOLD TRUST
10-Q, 1997-08-05
INVESTORS, NEC
Previous: REINHOLD INDUSTRIES INC/DE/, 10QSB, 1997-08-05
Next: OPPENHEIMER QUEST GLOBAL VALUE FUND INC, N-30D, 1997-08-05










================================================================================



                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                               __________________


                                    FORM 10-Q

                               __________________


             X  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
            ---
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 1997



                               __________________


                         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
                                      ---

<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 June 30,1997
                  and  audited  Statements  of Assets  and  Liabilities  at
                  December 31, 1996.  

                  Unaudited  Statements of Operations for the three months ended
                  June 30, 1997 and 1996 and for the  six months ended June 30, 
                  1997 and 1996.

                  Unaudited  Statements  of  Changes in Net Assets for  the  six
                  months ended June 30, 1997 and 1996.

                  Unaudited  Selected  Per  Unit  Data and  Ratios  for  the six
                  months ended June 30, 1997 and 1996.

  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 5% during the three months
                  ended  June  30,  1997.  Net  assets  of the  Trust's  Bullion
                  Portfolio  decreased   approximately  8%  from  $2,042,490  to
                  $1,889,286,  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  5% during the
                  same  period.   Net  assets  of  the  Trust's  Coin  Portfolio
                  decreased approximately 7% from $2,943,826 to $2,736,184,  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 10% during  the six months
                  ended  June  30,  1997.  Net  assets  of the  Trust's  Bullion
                  Portfolio  decreased   approximately 13%  from  $2,160,978  to
                  $1,889,286,  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  9% during the
                  same  period.   Net  assets  of  the  Trust's  Coin  Portfolio
                  decreased approximately 14% from $3,192,490 to $2,736,184, 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 June 30, 1997 and 1996 and the six months  ended
                  June 30,  1997 and 1996  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
                                  June 30, 1997
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                  Bullion             Coin
                                                                                 Portfolio          Portfolio
                                                                               -------------      -------------
<S>                                                                             <C>                <C>
ASSETS
Investments at value (based on bid side evaluation)
  (cost: $2,092,158 and $3,065,305, respectively)
  Gold Bullion.............................................................     $ 1,922,581        $        --
  American Eagle Gold Coins................................................              --          2,822,243
                                                                                -----------        -----------
  Total Assets                                                                    1,922,581          2,822,243

LIABILITIES
Bank overdraft.............................................................          29,770             80,928
Payable to Sponsor.........................................................           1,947              2,834
Payable to Trustee.........................................................           1,250              1,417
Other accrued liabilities..................................................             328                880
                                                                                -----------        -----------
  Total Liabilities                                                                  33,295             86,059
                                                                                -----------        -----------
NET ASSETS                                                                      $ 1,889,286        $ 2,736,184
                                                                                ===========        ===========

INTEREST OF UNITHOLDERS

Outstanding Units..........................................................         144,181            206,843
                                                                                ===========        ===========

Redemption Price Per Unit (based on bid side evaluation)...................     $     13.10        $     13.23
                                                                                ===========        ===========

Calculation of Offering Price per Unit:
  Aggregate offering side evaluation.......................................     $ 1,903,117        $ 2,772,515
                                                                                ===========        ===========
  Divided by outstanding Units.............................................     $     13.20        $     13.40

  Plus sales charge of 1.96% of Offering Price
    (2% of net amount invested)............................................             .26                .27
                                                                                -----------        -----------
Offering Price per Unit....................................................     $     13.46        $     13.67
                                                                                ===========        ===========
</TABLE>

<PAGE>

                            UNITED STATES GOLD TRUST

                      STATEMENTS OF ASSETS AND LIABILITIES
                                December 31, 1996
<TABLE>
<CAPTION>
                                                                                  Bullion            Coin
                                                                                 Portfolio         Portfolio
                                                                               -------------     -------------
<S>                                                                             <C>               <C>        
ASSETS
Investments at value (based on bid side evaluation)
  (cost: $2,092,158 and $3,173,783, respectively)
  Gold Bullion.............................................................     $ 2,127,172       $        --
  American Eagle Gold Coins................................................              --         3,222,138
Cash.......................................................................          42,264                --
                                                                                -----------       -----------
  Total Assets                                                                    2,169,436         3,222,138

LIABILITIES
Bank overdraft.............................................................              --            13,292
Payable to Sponsor.........................................................           4,620             7,864
Payable to Trustee.........................................................           2,500             3,932
Other accrued liabilities..................................................           1,338             4,560
                                                                                -----------       -----------
  Total Liabilities                                                                   8,458            29,648
                                                                                -----------       -----------
NET ASSETS                                                                      $ 2,160,978       $ 3,192,490
                                                                                ===========       ===========

INTEREST OF UNITHOLDERS

Outstanding Units..........................................................         148,946           218,383
                                                                                ===========       ===========

Redemption Price Per Unit (based on bid side evaluation)...................     $     14.51       $     14.62
                                                                                ===========       ===========

Calculation of Offering Price per Unit:
  Aggregate offering side evaluation.......................................     $ 2,174,810       $ 3,230,141
                                                                                ===========       ===========
  Divided by outstanding Units.............................................     $     14.60       $     14.79

  Plus sales charge of 1.96% of Offering Price
    (2% of net amount invested)............................................             .29               .30
                                                                                -----------       -----------
Offering Price per Unit....................................................     $     14.89       $     15.09
                                                                                ===========       ===========

</TABLE>

<PAGE>


                            UNITED STATES GOLD TRUST

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                             Three Months Ended June 30
                                    ---------------------------------------------------------------------------
                                                   1997                                     1996
                                    ----------------------------------      -----------------------------------
                                      Bullion                 Coin            Bullion                  Coin
                                     Portfolio              Portfolio        Portfolio               Portfolio
                                    -----------            -----------      -----------             -----------
<S>                                  <C>                    <C>              <C>                     <C>
Expenses:
   Trustee fees..................... $    625               $     695        $     625               $   1,018
   Sponsor fees.....................      959                   1,390            1,172                   2,036
   Gold storage fees................      594                     851              714                   1,242
   Professional fees................    1,125                   1,125            1,125                   1,125
   Other............................      125                     125              125                     125
                                     --------               ---------        ---------               ---------

   Total expenses                       3,428                   4,186            3,761                   5,546
   Less: amount waived or
      absorbed by Sponsor...........    1,688                   1,664            1,633                   1,852
                                     --------               ---------        ---------               ---------

Net investment loss                    (1,740)                 (2,522)          (2,128)                 (3,694)

Net realized and unrealized
   loss on investments:
   Net realized gain
   on investments...................       --                      --           18,944                   3,890

  Net change in unrealized
     depreciation on investments....  (93,939)               (147,800)         (97,831)               (168,615)
                                     --------               ---------        ---------               ---------

Net realized and unrealized
   loss on investments                (93,939)               (147,800)         (78,887)               (164,725)
                                     --------               ---------        ---------               ---------

Net decrease in net assets
   resulting from operations         $(95,679)              $(150,322)       $ (81,015)              $(168,419)
                                     ========               =========        =========               =========
</TABLE>

<PAGE>


                            UNITED STATES GOLD TRUST

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                             Six Months Ended June 30
                                    ---------------------------------------------------------------------------
                                                   1997                                     1996
                                    ----------------------------------      -----------------------------------
                                      Bullion                 Coin            Bullion                  Coin
                                     Portfolio              Portfolio        Portfolio               Portfolio
                                    -----------            -----------      -----------             -----------
<S>                                  <C>                    <C>              <C>                     <C>
Expenses:
   Trustee fees..................... $   1,250               $   1,417        $   1,250               $   2,097
   Sponsor fees.....................     1,947                   2,834            2,417                   4,194
   Gold storage fees................     1,223                   1,752            1,527                   2,594
   Professional fees................     2,250                   2,250            2,250                   2,250
   Other............................       250                     250              250                     250
                                     ---------               ---------        ---------               ---------

   Total expenses                        6,920                   8,503            7,694                  11,385
   Less: amount waived or
      absorbed by Sponsor...........     3,367                   3,332            3,308                   3,777
                                     ---------               ---------        ---------               ---------

Net investment loss                     (3,553)                 (5,171)          (4,386)                 (7,608)

Net realized and unrealized
   loss on investments:
   Net realized gain (loss)
   on investments...................        --                    (313)          21,677                  17,227

   Net change in unrealized
     depreciation
     on investments.................  (204,591)               (291,417)         (43,298)                (71,687)
                                     ---------               ---------        ---------               ---------

   Net realized and unrealized
     loss on investments              (204,591)               (291,730)         (21,621)                (54,460)
                                     ---------               ---------        ---------               ---------

   Net decrease in net assets 
     resulting from operations       $(208,144)              $(296,901)       $ (26,007)              $ (62,068)
                                     =========               =========        =========               =========
</TABLE>


<PAGE>


                            UNITED STATES GOLD TRUST

                       STATEMENTS OF CHANGES IN NET ASSETS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                            Six Months Ended June 30
                                       -------------------------------------------------------------------------
                                                   1997                                     1996
                                       --------------------------------      -----------------------------------
                                         Bullion               Coin            Bullion                  Coin
                                        Portfolio            Portfolio        Portfolio               Portfolio
                                       -----------         ------------      -----------             -----------
<S>                                    <C>                 <C>               <C>                     <C>
From Operations
   Net investment loss..............   $   (3,553)         $   (5,171)       $   (4,386)             $   (7,608)
   Net realized gain (loss)
     on investments.................           --                (313)           21,677                  17,227
   Net change in unrealized 
     depreciation 
     on investments.................     (204,591)           (291,417)          (43,298)                (71,687)
                                       ----------          ----------        ----------              ----------
   Net decrease in net
     assets resulting from operations    (208,144)           (296,901)          (26,007)                (62,068)

From Unit Transactions
   Redemption of 4,765; 11,540;
     10,341 and 21,134 Units,
     respectively ..................      (63,548)           (159,405)         (158,630)               (337,226)
                                       ----------          ----------        ----------              ----------
   Net decrease in net
     assets from Unit transactions        (63,548)           (159,405)         (158,630)               (337,226)
                                       ----------          ----------        ----------              ----------
   Net decrease in net assets            (271,692)           (456,306)         (184,637)               (399,294)

   Net assets at beginning
     of period                          2,160,978           3,192,490         2,540,829               4,396,853
                                       ----------          ----------        ----------              ----------
   Net assets at end of period
     (including accumulated net
     investment loss of $72,357;
     $104,354; $64,809 and $92,526,
     respectively)                     $1,889,286          $2,736,184        $2,356,192              $3,997,559
                                       ==========          ==========        ==========              ==========

</TABLE>

<PAGE>


                            UNITED STATES GOLD TRUST

                        SELECTED PER UNIT DATA AND RATIOS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                           Six Months Ended June 30
                                      --------------------------------------------------------------------------
                                                1997 (a)(b)                              1996 (a)(b)
                                      ---------------------------------      -----------------------------------
                                        Bullion                Coin            Bullion                  Coin
                                       Portfolio             Portfolio        Portfolio               Portfolio
                                      -----------           -----------      -----------             -----------
<S>                                    <C>                   <C>              <C>                     <C>
Net asset value at beginning
  of period                            $  14.51              $  14.62         $  15.16                $  15.44
Net investment loss.................       (.02)                 (.02)            (.03)                   (.03)
Net realized and unrealized
  loss on investments ..............      (1.39)                (1.37)            (.15)                   (.25)
                                       --------              --------         --------                --------
Decrease in net asset value               (1.41)                (1.39)            (.18)                   (.28)
                                       --------              --------         --------                --------
Net asset value at end of period       $  13.10              $  13.23         $  14.98                $  15.16
                                       ========              ========         ========                ========
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                    None
Number of Units outstanding
  at end of period .................    144,181               206,843          157,254                 263,725
Net assets at end of period
  (in thousands)....................   $  1,889              $  2,736         $  2,356                $  3,998

<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  six   months  ended  June 30,  1997 and 1996,  the  Sponsor
        reimbursed expenses totaling $3,367 and $3,308 for the Bullion Portfolio
        and $3,332 and $3,777 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 .68%
        and  .61%  for the  Bullion  Portfolio  and  .58%  and .52% 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:  August 5, 1997          By       TERRY COXON
                                    ____________________________________________
                                         Terry Coxon, President


Dated:  August 5, 1997          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-31-1997
<PERIOD-END>                                         JUN-30-1997
<EXCHANGE-RATE>                                                      1
<INVESTMENTS-AT-COST>                                        2,092,158
<INVESTMENTS-AT-VALUE>                                       1,922,581
<RECEIVABLES>                                                        0
<ASSETS-OTHER>                                                       0
<OTHER-ITEMS-ASSETS>                                                 0
<TOTAL-ASSETS>                                               1,922,581
<PAYABLE-FOR-SECURITIES>                                             0
<SENIOR-LONG-TERM-DEBT>                                              0
<OTHER-ITEMS-LIABILITIES>                                       33,295
<TOTAL-LIABILITIES>                                             33,295
<SENIOR-EQUITY>                                                      0
<PAID-IN-CAPITAL-COMMON>                                             0
<SHARES-COMMON-STOCK>                                          144,181
<SHARES-COMMON-PRIOR>                                          148,508
<ACCUMULATED-NII-CURRENT>                                            0
<OVERDISTRIBUTION-NII>                                               0
<ACCUMULATED-NET-GAINS>                                              0
<OVERDISTRIBUTION-GAINS>                                             0
<ACCUM-APPREC-OR-DEPREC>                                             0
<NET-ASSETS>                                                 1,889,286
<DIVIDEND-INCOME>                                                    0
<INTEREST-INCOME>                                                    0
<OTHER-INCOME>                                                       0
<EXPENSES-NET>                                                   1,740
<NET-INVESTMENT-INCOME>                                         (1,740)
<REALIZED-GAINS-CURRENT>                                             0
<APPREC-INCREASE-CURRENT>                                      (93,939)
<NET-CHANGE-FROM-OPS>                                          (95,679)
<EQUALIZATION>                                                       0
<DISTRIBUTIONS-OF-INCOME>                                            0
<DISTRIBUTIONS-OF-GAINS>                                             0
<DISTRIBUTIONS-OTHER>                                                0
<NUMBER-OF-SHARES-SOLD>                                              0
<NUMBER-OF-SHARES-REDEEMED>                                    (57,525)
<SHARES-REINVESTED>                                                  0
<NET-CHANGE-IN-ASSETS>                                        (153,204)
<ACCUMULATED-NII-PRIOR>                                              0
<ACCUMULATED-GAINS-PRIOR>                                            0
<OVERDISTRIB-NII-PRIOR>                                              0
<OVERDIST-NET-GAINS-PRIOR>                                           0
<GROSS-ADVISORY-FEES>                                              959
<INTEREST-EXPENSE>                                                   0
<GROSS-EXPENSE>                                                  3,428
<AVERAGE-NET-ASSETS>                                         2,030,767
<PER-SHARE-NAV-BEGIN>                                            14.51
<PER-SHARE-NII>                                                   (.02)
<PER-SHARE-GAIN-APPREC>                                          (1.39)
<PER-SHARE-DIVIDEND>                                                 0
<PER-SHARE-DISTRIBUTIONS>                                            0
<RETURNS-OF-CAPITAL>                                                 0
<PER-SHARE-NAV-END>                                              13.10
<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-31-1997
<PERIOD-END>                                            JUN-30-1997
<EXCHANGE-RATE>                                                      1
<INVESTMENTS-AT-COST>                                        3,065,305
<INVESTMENTS-AT-VALUE>                                       2,822,243
<RECEIVABLES>                                                        0
<ASSETS-OTHER>                                                       0
<OTHER-ITEMS-ASSETS>                                                 0
<TOTAL-ASSETS>                                               2,822,243
<PAYABLE-FOR-SECURITIES>                                             0
<SENIOR-LONG-TERM-DEBT>                                              0
<OTHER-ITEMS-LIABILITIES>                                       86,059
<TOTAL-LIABILITIES>                                             86,059
<SENIOR-EQUITY>                                                      0
<PAID-IN-CAPITAL-COMMON>                                             0
<SHARES-COMMON-STOCK>                                          206,843
<SHARES-COMMON-PRIOR>                                          211,050
<ACCUMULATED-NII-CURRENT>                                            0
<OVERDISTRIBUTION-NII>                                               0
<ACCUMULATED-NET-GAINS>                                              0
<OVERDISTRIBUTION-GAINS>                                             0
<ACCUM-APPREC-OR-DEPREC>                                             0
<NET-ASSETS>                                                 2,736,184
<DIVIDEND-INCOME>                                                    0
<INTEREST-INCOME>                                                    0
<OTHER-INCOME>                                                       0
<EXPENSES-NET>                                                   2,522
<NET-INVESTMENT-INCOME>                                         (2,522)
<REALIZED-GAINS-CURRENT>                                             0
<APPREC-INCREASE-CURRENT>                                     (147,800)
<NET-CHANGE-FROM-OPS>                                         (150,322)
<EQUALIZATION>                                                       0
<DISTRIBUTIONS-OF-INCOME>                                            0
<DISTRIBUTIONS-OF-GAINS>                                             0
<DISTRIBUTIONS-OTHER>                                                0
<NUMBER-OF-SHARES-SOLD>                                              0
<NUMBER-OF-SHARES-REDEEMED>                                    (57,320)
<SHARES-REINVESTED>                                                  0
<NET-CHANGE-IN-ASSETS>                                        (207,642)
<ACCUMULATED-NII-PRIOR>                                              0
<ACCUMULATED-GAINS-PRIOR>                                            0
<OVERDISTRIB-NII-PRIOR>                                              0
<OVERDIST-NET-GAINS-PRIOR>                                           0
<GROSS-ADVISORY-FEES>                                            1,390
<INTEREST-EXPENSE>                                                   0
<GROSS-EXPENSE>                                                  4,186
<AVERAGE-NET-ASSETS>                                         2,954,680
<PER-SHARE-NAV-BEGIN>                                            14.62
<PER-SHARE-NII>                                                   (.02)
<PER-SHARE-GAIN-APPREC>                                          (1.37)
<PER-SHARE-DIVIDEND>                                                 0
<PER-SHARE-DISTRIBUTIONS>                                            0
<RETURNS-OF-CAPITAL>                                                 0
<PER-SHARE-NAV-END>                                              13.23
<EXPENSE-RATIO>                                                   .004
<AVG-DEBT-OUTSTANDING>                                               0
<AVG-DEBT-PER-SHARE>                                                 0
        

</TABLE>


© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission