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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, 1998
__________________
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,
1998 and audited Statements of Assets and Liabilities at December
31, 1997.
Unaudited Statements of Operations for the three months ended
September 30, 1998 and 1997 and for the nine months ended
September 30, 1998 and 1997.
Unaudited Statements of Changes in Net Assets for the nine months
ended September 30, 1998 and 1997.
Unaudited Selected Per Unit Data and Ratios for the nine months
ended September 30, 1998 and 1997.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
Dealer prices for wholesale transactions of gold bullion
generally were unchanged during the three months ended September
30, 1998. Net assets of the Trust's Bullion Portfolio decreased
approximately 1% from $1,346,219 to $1,339,591, the result of the
redemption of Units.
Dealer prices for wholesale transactions of American Eagle gold
coins generally were unchanged during the same period. Net assets
of the Trust's Coin Portfolio decreased approximately 4% from
$2,120,458 to $2,038,172, the result of the redemption of Units.
Dealer prices for wholesale transactions of gold bullion
generally increased approximately 3% during the nine months ended
September 30, 1998. Net assets of the Trust's Bullion Portfolio
decreased approximately 13% from $1,547,421 to $1,339,591, the
result of the redemption of Units in excess of the increase in
value of gold bullion.
Dealer prices for wholesale transactions of American Eagle gold
coins generally increased approximately 3% during the same
period. Net assets of the Trust's Coin Portfolio decreased
approximately 7% from $2,187,372 to $2,038,172, the result of the
redemption of Units in excess of the increase 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, 1998 and 1997 and the nine months ended
September 30, 1998 and 1997 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, 1998
(Unaudited)
<TABLE>
<CAPTION>
Bullion Coin
Portfolio Portfolio
----------- -----------
<S> <C> <C>
ASSETS
Investments at value (based on bid side evaluation)
(cost: $1,664,030 and $2,432,078, respectively)
Gold Bullion............................................................ $ 1,349,810 $ --
American Eagle Gold Coins............................................... -- 1,986,794
Cash..................................................................... 153 66,217
----------- -----------
Total Assets 1,349,963 2,053,011
LIABILITIES
Payable to Sponsor....................................................... 5,711 8,444
Payable to Trustee....................................................... 4,375 4,557
Other accrued liabilities................................................ 286 1,838
----------- -----------
Total Liabilities 10,372 14,839
----------- -----------
NET ASSETS $ 1,339,591 $ 2,038,172
=========== ===========
INTEREST OF UNITHOLDERS
Outstanding Units........................................................ 115,291 175,279
=========== ===========
Redemption Price Per Unit (based on bid side evaluation)................. $ 11.62 $ 11.63
=========== ===========
Calculation of Offering Price per Unit:
Aggregate offering side evaluation...................................... $ 1,350,565 $ 2,081,978
=========== ===========
Divided by outstanding Units............................................ $ 11.71 $ 11.88
Plus sales charge of 1.96% of Offering Price
(2% of net amount invested)............................................ .24 .24
----------- -----------
Offering Price per Unit.................................................. $ 11.95 $ 12.12
=========== ===========
</TABLE>
<PAGE>
UNITED STATES GOLD TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1997
<TABLE>
<CAPTION>
Bullion Coin
Portfolio Portfolio
----------- -----------
<S> <C> <C>
ASSETS
Investments at value (based on bid side evaluation)
(cost: $1,946,034 and $2,819,351, respectively)
Gold Bullion............................................................. $ 1,544,419 $ --
American Eagle Gold Coins................................................ -- 2,240,736
Cash..................................................................... 9,633 --
----------- -----------
Total Assets 1,554,052 2,240,736
LIABILITIES
Bank Overdraft............................................................. -- 43,724
Payable to Sponsor......................................................... 3,645 5,274
Payable to Trustee......................................................... 2,500 2,682
Other accrued liabilities.................................................. 486 1,684
----------- -----------
Total Liabilities 6,631 53,364
----------- -----------
NET ASSETS $ 1,547,421 $ 2,187,372
=========== ===========
INTEREST OF UNITHOLDERS
Outstanding Units.......................................................... 136,589 192,084
=========== ===========
Redemption Price Per Unit (based on bid side evaluation)................... $ 11.33 $ 11.39
=========== ===========
Calculation of Offering Price per Unit:
Aggregate offering side evaluation....................................... $ 1,560,291 $ 2,220,759
=========== ===========
Divided by outstanding Units............................................. $ 11.42 $ 11.56
Plus sales charge of 1.96% of Offering Price
(2% of net amount invested)............................................ .23 .23
----------- -----------
Offering Price per Unit.................................................... $ 11.65 $ 11.79
=========== ===========
</TABLE>
<PAGE>
UNITED STATES GOLD TRUST
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended September 30
---------------------------------------------------------------------------
1998 1997
---------------------------------- -----------------------------------
Bullion Coin Bullion Coin
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Expenses:
Trustee fees..................... $ 625 $ 625 $ 625 $ 640
Sponsor fees..................... 643 1,016 887 1,280
Gold storage fees................ 724 1,088 534 771
Professional fees................ 1,175 1,175 1,125 1,125
Other............................ 125 125 125 125
----------- ----------- ----------- -----------
Total expenses 3,292 4,029 3,296 3,941
Less: amount waived or
absorbed by Sponsor........... 2,139 2,208 1,687 1,620
----------- ----------- ----------- -----------
Net investment loss (1,153) (1,821) (1,609) (2,321)
Net realized and unrealized
loss on investments:
Net realized loss
on investments................ -- (42,605) (13,136) (19,200)
Net change in unrealized
appreciation (depreciation)
on investments................ (2,743) 35,476 9,813 17,686
----------- ----------- ----------- -----------
Net realized and unrealized
loss on investments (2,743) (7,129) (3,323) (1,514)
----------- ----------- ----------- -----------
Net decrease in net assets
resulting from operations $ (3,896) $ (8,950) $ (4,932) $ (3,835)
=========== =========== =========== ===========
</TABLE>
<PAGE>
UNITED STATES GOLD TRUST
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended September 30
---------------------------------------------------------------------------
1998 1997
---------------------------------- -----------------------------------
Bullion Coin Bullion Coin
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Expenses:
Trustee fees..................... $ 1,875 $ 1,875 $ 1,875 $ 2,057
Sponsor fees..................... 2,066 3,170 2,834 4,114
Gold storage fees................ 1,970 2,911 1,751 2,514
Professional fees................ 3,525 3,525 3,375 3,375
Other............................ 375 375 375 375
----------- ----------- ----------- -----------
Total expenses 9,811 11,856 10,210 12,435
Less: amount waived or
absorbed by Sponsor........... 6,060 6,104 5,048 4,943
----------- ----------- ----------- -----------
Net investment loss (3,751) (5,752) (5,162) (7,492)
Net realized and unrealized
gain (loss) on investments:
Net realized loss
on investments................. (46,257) (79,905) (13,136) (19,513)
Net change in unrealized
appreciation (depreciation)
on investments................. 87,395 133,331 (194,778) (273,731)
----------- ----------- ----------- -----------
Net realized and unrealized
gain (loss) on investments 41,138 53,426 (207,914) (293,244)
----------- ----------- ----------- -----------
Net increase (decrease) in net
assets resulting from operations $ 37,387 $ 47,674 $ (213,076) $ (300,736)
=========== =========== =========== ===========
</TABLE>
<PAGE>
UNITED STATES GOLD TRUST
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended September 30
-------------------------------------------------------------------------
1998 1997
-------------------------------- -----------------------------------
Bullion Coin Bullion Coin
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
From Operations
Net investment loss............. $ (3,751) $ (5,752) $ (5,162) $ (7,492)
Net realized loss
on investments................ (46,257) (79,905) (13,136) (19,513)
Net change in unrealized
appreciation (depreciation)
on investments................ 87,395 133,331 (194,778) (273,731)
----------- ----------- ----------- -----------
Net increase (decrease) in net
assets resulting from operations 37,387 47,674 (213,076) (300,736)
From Unit Transactions
Redemption of 21,298; 16,805;
6,077 and 16,982 Units,
respectively ................. (245,217) (196,874) (80,190) (229,128)
----------- ----------- ----------- -----------
Net decrease in net
assets from Unit transactions (245,217) (196,874) (80,190) (229,128)
----------- ----------- ----------- -----------
Net decrease in net assets (207,380) (149,200) (293,266) (529,864)
Net assets at beginning
of period 1,547,421 2,187,372 2,160,978 3,192,490
----------- ----------- ----------- -----------
Net assets at end of period
(including accumulated net
investment loss of $79,187;
$114,529; $73,966 and
$106,675, respectively) $ 1,339,591 $ 2,038,172 $ 1,867,712 $ 2,662,626
=========== =========== =========== ===========
</TABLE>
<PAGE>
UNITED STATES GOLD TRUST
SELECTED PER UNIT DATA AND RATIOS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended September 30
--------------------------------------------------------------------------
1998 (a)(b) 1997 (a)(b)
--------------------------------- -----------------------------------
Bullion Coin Bullion Coin
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value at beginning
of period $ 11.33 $ 11.39 $ 14.51 $ 14.62
Net investment loss................. (.03) (.03) (.04) (.04)
Net realized and unrealized
gain (loss) on investments ....... .32 .27 (1.40) (1.36)
----------- ----------- ----------- -----------
Increase (decrease) in net
asset value .29 .24 (1.44) (1.40)
----------- ----------- ----------- -----------
Net asset value at end of period $ 11.62 $ 11.63 $ 13.07 $ 13.22
=========== =========== =========== ===========
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 ................. 115,291 175,279 142,869 201,401
Net assets at end of period
(in thousands).................... $ 1,340 $ 2,038 $ 1,868 $ 2,663
<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, 1998 and 1997, the Sponsor
reimbursed expenses totaling $6,060 and $5,048 for the Bullion Portfolio
and $6,104 and $4,943 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 .92% and .69%
for the Bullion Portfolio and .72% and .58% 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
By TERRY COXON
Dated: November 16, 1998
______________________________________________
Terry Coxon, President
By MICHAEL JOSEPH CUGGINO
Dated: November 16, 1998 ______________________________________________
Michael Joseph Cuggino, Treasurer
(principal financial and accounting officer)
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 001
<NAME> BULLION PORTFOLIO
<MULTIPLIER> 1
<CURRENCY> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1,664,030
<INVESTMENTS-AT-VALUE> 1,349,810
<RECEIVABLES> 0
<ASSETS-OTHER> 153
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,349,963
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 10,372
<TOTAL-LIABILITIES> 10,372
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 115,291
<SHARES-COMMON-PRIOR> 115,534
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1,339,591
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 1,153
<NET-INVESTMENT-INCOME> (1,153)
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> (2,743)
<NET-CHANGE-FROM-OPS> (3,896)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> (2,732)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (6,178)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 643
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,292
<AVERAGE-NET-ASSETS> 1,428,943
<PER-SHARE-NAV-BEGIN> 11.65
<PER-SHARE-NII> (.01)
<PER-SHARE-GAIN-APPREC> (.02)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.62
<EXPENSE-RATIO> .004
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 002
<NAME> COIN PORTFOLIO
<MULTIPLIER> 1
<CURRENCY> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 2,432,078
<INVESTMENTS-AT-VALUE> 1,986,794
<RECEIVABLES> 0
<ASSETS-OTHER> 66,217
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,053,011
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 14,839
<TOTAL-LIABILITIES> 14,839
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 175,279
<SHARES-COMMON-PRIOR> 181,480
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 2,038,172
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 1,821
<NET-INVESTMENT-INCOME> (1,821)
<REALIZED-GAINS-CURRENT> (42,605)
<APPREC-INCREASE-CURRENT> 35,476
<NET-CHANGE-FROM-OPS> (8,950)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> (73,336)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (82,286)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,016
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4,029
<AVERAGE-NET-ASSETS> 2,191,435
<PER-SHARE-NAV-BEGIN> 11.68
<PER-SHARE-NII> (.01)
<PER-SHARE-GAIN-APPREC> (.04)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.63
<EXPENSE-RATIO> .004
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
