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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
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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, 1999
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Commission file number 0-18441
UNITED STATES GOLD TRUST
Incorporated pursuant to the Laws of New York State
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Internal Revenue Service -- Employer Identification No. 68-0146329
625 Second Street, Suite 102, Petaluma, California 94952
(707) 778-1000
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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, 1999 and audited Statements of Assets and Liabilities at
December 31, 1998.
Unaudited Statements of Operations for the three months
ended September 30, 1999 and 1998 and for the nine months
ended September 30, 1999 and 1998.
Unaudited Statements of Changes in Net Assets for the nine
months ended September 30, 1999 and 1998.
Unaudited Selected Per Unit Data and Ratios for the nine
months ended September 30, 1999 and 1998.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
Dealer prices for wholesale transactions of gold bullion
generally increased approximately 13% during the three
months ended September 30, 1999. Net assets of the Trust's
Bullion Portfolio decreased approximately 19% from
$1,032,491 to $835,652, 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 15% during the
same period. Net assets of the Trust's Coin Portfolio
decreased approximately 35% from $1,387,420 to $904,804,
the result of the redemption of Units in excess of the
increase in value of American Eagle gold coins.
Dealer prices for wholesale transactions of gold bullion
generally increased approximately 3% during the nine months
ended September 30, 1999. Net assets of the Trust's Bullion
Portfolio decreased approximately 34% from $1,269,843 to
$835,652, 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 4% during the
same period. Net assets of the Trust's Coin Portfolio
decreased approximately 46% from $1,662,654 to $904,804, 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, 1999 and 1998 and the nine months
ended September 30, 1999 and 1998 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, 1999
(Unaudited)
<TABLE>
<CAPTION>
Bullion Coin
Portfolio Portfolio
----------- -----------
<S> <C> <C>
ASSETS
Investments at value (based on bid side evaluation)
(cost: $1,495,233 and $1,419,658, respectively)
Gold Bullion............................................................. $ 1,209,580 $ --
American Eagle Gold Coins................................................ -- 1,127,122
Due from sponsor........................................................... 2,131 8,928
----------- -----------
Total Assets 1,211,711 1,136,050
LIABILITIES
Bank overdraft............................................................. 367,338 220,630
Payable to Sponsor......................................................... 4,346 6,241
Payable to Trustee......................................................... 4,375 4,375
----------- -----------
Total Liabilities 376,059 231,246
----------- -----------
NET ASSETS $ 835,652 $ 904,804
=========== ===========
INTEREST OF UNITHOLDERS
Outstanding Units.......................................................... 66,974 75,765
=========== ===========
Redemption Price Per Unit (based on bid side evaluation)................... $ 12.48 $ 11.94
=========== ===========
Calculation of Offering Price per Unit:
Aggregate offering side evaluation....................................... $ 845,436 $ 969,958
=========== ===========
Divided by outstanding Units............................................. $ 12.62 $ 12.80
Plus sales charge of 1.96% of Offering Price
(2% of net amount invested)............................................ .26 .26
----------- -----------
Offering Price per Unit.................................................... $ 12.88 $ 13.06
=========== ===========
</TABLE>
<PAGE>
UNITED STATES GOLD TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1998
<TABLE>
<CAPTION>
Bullion Coin
Portfolio Portfolio
----------- -----------
<S> <C> <C>
ASSETS
Investments at value (based on bid side evaluation)
(cost: $1,495,233 and $2,007,945, respectively)
Gold Bullion............................................................. $ 1,169,627 $ --
American Eagle Gold Coins................................................ -- 1,582,111
Cash....................................................................... 104,566 88,793
Due from Sponsor........................................................... 858 --
----------- -----------
Total Assets 1,275,051 1,670,904
LIABILITIES
Payable to Sponsor......................................................... 2,708 4,087
Payable to Trustee......................................................... 2,500 2,500
Other accrued liabilities.................................................. -- 1,663
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Total Liabilities 5,208 8,250
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NET ASSETS $ 1,269,843 $ 1,662,654
=========== ===========
INTEREST OF UNITHOLDERS
Outstanding Units.......................................................... 112,377 147,719
=========== ===========
Redemption Price Per Unit (based on bid side evaluation)................... $ 11.30 $ 11.26
=========== ===========
Calculation of Offering Price per Unit:
Aggregate offering side evaluation....................................... $ 1,279,628 $ 1,694,904
=========== ===========
Divided by outstanding Units............................................. $ 11.39 $ 11.47
Plus sales charge of 1.96% of Offering Price
(2% of net amount invested)............................................ .22 .23
----------- -----------
Offering Price per Unit.................................................... $ 11.61 $ 11.70
=========== ===========
</TABLE>
<PAGE>
UNITED STATES GOLD TRUST
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended September 30
--------------------------------------------------------------------------
1999 1998
---------------------------------- ----------------------------------
Bullion Coin Bullion Coin
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Expenses:
Trustee fees..................... $ 625 $ 625 $ 625 $ 625
Sponsor fees..................... 455 620 643 1,016
Gold storage fees................ 679 686 724 1,088
Professional fees................ 1,200 1,200 1,175 1,175
Other............................ 125 125 125 125
----------- ----------- ----------- -----------
Total expenses 3,084 3,256 3,292 4,029
Less: amount waived or
absorbed by Sponsor........... 2,266 2,141 2,139 2,208
----------- ----------- ----------- -----------
Net investment loss (818) (1,115) (1,153) (1,821)
Net realized and unrealized
gain (loss) on investments:
Net realized loss
on investments................... -- (143,111) -- (42,605)
Net change in unrealized
appreciation (depreciation)
on investments .................. 141,872 289,645 (2,743) 35,476
----------- ----------- ----------- -----------
Net realized and unrealized
gain (loss) on investments 141,872 146,534 (2,743) (7,129)
----------- ----------- ----------- -----------
Net increase (decrease) in net
assets resulting from operations $ 141,054 $ 145,419 $ (3,896) $ (8,950)
=========== =========== =========== ===========
</TABLE>
<PAGE>
UNITED STATES GOLD TRUST
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended September 30
--------------------------------------------------------------------------
1999 1998
---------------------------------- ----------------------------------
Bullion Coin Bullion Coin
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Expenses:
Trustee fees..................... $ 1,875 $ 1,875 $ 1,875 $ 1,875
Sponsor fees..................... 1,638 2,154 2,066 3,170
Gold storage fees................ 2,010 2,435 1,970 2,911
Professional fees................ 3,600 3,600 3,525 3,525
Other............................ 375 375 375 375
----------- ----------- ----------- -----------
Total expenses 9,498 10,439 9,811 11,856
Less: amount waived or
absorbed by Sponsor........... 6,521 6,524 6,060 6,104
----------- ----------- ----------- -----------
Net investment loss (2,977) (3,915) (3,751) (5,752)
Net realized and unrealized
gain (loss) on investments:
Net realized loss
on investments................... -- (143,681) (46,257) (79,905)
Net change in unrealized
appreciation (depreciation)
on investments .................. 39,953 133,298 87,395 133,331
----------- ----------- ----------- -----------
Net realized and unrealized
gain (loss) on investments 39,953 (10,383) 41,138 53,426
----------- ----------- ----------- -----------
Net increase (decrease) in net
assets resulting from operations $ 36,976 $ (14,298) $ 37,387 $ 47,674
=========== =========== =========== ===========
</TABLE>
<PAGE>
UNITED STATES GOLD TRUST
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended September 30
--------------------------------------------------------------------------
1999 1998
---------------------------------- ----------------------------------
Bullion Coin Bullion Coin
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
From Operations
Net investment loss.............. $ (2,977) $ (3,915) $ (3,751) $ (5,752)
Net realized loss
on investments................. -- (143,681) (46,257) (79,905)
Net change in unrealized
appreciation (depreciation)
on investments................. 39,953 133,298 87,395 133,331
----------- ----------- ----------- -----------
Net increase (decrease) in net
assets resulting from operations 36,976 (14,298) 37,387 47,674
From Unit Transactions
Redemption of 45,403; 71,954;
21,298 and 16,805 Units,
respectively .................. (471,167) (743,552) (245,217) (196,874)
----------- ----------- ----------- -----------
Net decrease in net
assets from Unit transactions (471,167) (743,552) (245,217) (196,874)
----------- ----------- ----------- -----------
Net decrease in net assets (434,191) (757,850) (207,380) (149,200)
Net assets at beginning
of period 1,269,843 1,662,654 1,547,421 2,187,372
----------- ----------- ----------- -----------
Net assets at end of period
(including accumulated net
investment loss of $83,316;
$120,089; $79,187 and
$114,529, respectively) $ 835,652 $ 904,804 $ 1,339,591 $ 2,038,172
=========== =========== =========== ===========
</TABLE>
<PAGE>
UNITED STATES GOLD TRUST
SELECTED PER UNIT DATA AND RATIOS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended September 30
--------------------------------------------------------------------------
1999 (a)(b) 1998 (a)(b)
---------------------------------- ----------------------------------
Bullion Coin Bullion Coin
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value at beginning
of period $ 11.30 $ 11.26 $ 11.33 $ 11.39
Net investment loss................. (.03) (.03) (.03) (.03)
Net realized and unrealized
gain on investments............... 1.21 .71 .32 .27
----------- ----------- ----------- -----------
Increase in net asset value 1.18 .68 .29 .24
----------- ----------- ----------- -----------
Net asset value at end of period $ 12.48 $ 11.94 $ 11.62 $ 11.63
=========== =========== =========== ===========
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 ................. 66,974 75,765 115,291 175,279
Net assets at end of period
(in thousands).................... $ 836 $ 905 $ 1,340 $ 2,038
<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, 1999 and 1998, the Sponsor
reimbursed expenses totaling $6,521 and $6,060 for the Bullion Portfolio
and $6,524 and $6,104 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 1.12%
and .92% for the Bullion Portfolio and .93% and .72% 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 15, 1999
______________________________________________
Terry Coxon, President
By MICHAEL JOSEPH CUGGINO
Dated: November 15, 1999 ______________________________________________
Michael Joseph Cuggino, Treasurer
(principal financial and accounting officer)
