<PAGE> 1
GABELLI GOLD FUND, INC.
FIRST QUARTER REPORT - MARCH 31, 1996
[GRAPHIC OF CAESAR BRYAN]
TO OUR SHAREHOLDERS:
The price of gold traded above $400 per ounce during the quarter for
the first time since July 1993. It reached a high at the start of February of
$415 per ounce, before falling to end the quarter at $395.45 per ounce for a
2.2% gain for the three months under review. Gold equity investors were
impressed by gold's ability to breach the $400 per ounce level and gold stocks
performed strongly, particularly in January.
For the first quarter of 1996 the Fund's net asset value appreciated
by 22.7%. This compares with a rise of 22.1% for the average gold fund
monitored by Lipper Analytical Services Inc. and 19.4% for the Philadelphia
Index of gold and silver stocks. The Australian and South African gold share
indices appreciated by a similar amount.
INVESTMENT RESULTS (a)
<TABLE>
<CAPTION>
Quarter
------------------------------------------------------
1st 2nd 3rd 4th Year
------- ------- ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
1996: Net Asset Value . . . . . . . . $14.00 - - - -
Total Return . . . . . . . . . . 22.7% - - - -
- -----------------------------------------------------------------------------------------------------------------------
1995: Net Asset Value . . . . . . . . $11.00 $11.96 $12.27 $11.41 $11.41
Total Return . . . . . . . . . . (0.6)% 8.7% 2.6% (7.0)% 3.1%
- -----------------------------------------------------------------------------------------------------------------------
1994: Net Asset Value . . . . . . . . - - $12.37 $11.07 $11.07
Total Return . . . . . . . . . . - - 23.7%(b) (10.5)% 10.7%(b)
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Returns - March 31, 1996 (a)
-------------------------------------------
<S> <C>
1 Year . . . . . . . . . . . . . . . . . . . . . . . . . 27.3%
Life of Fund(b) . . . . . . . . . . . . . . . . . . . . . . 21.6%
</TABLE>
(a) Total returns reflect changes in share price and are net of expenses. Of
course, returns represent past performance and do not guarantee future
results. Investment returns and the principal value of an investment will
fluctuate. When shares are redeemed they maybe worth more or less than their
original cost.
(b) From commencement of operations on July 11, 1994.
Note: Investing in foreign securities involves risks not ordinarily associated
with investments in domestic issues, including currency fluctuation, economic
and political risks. Investing in gold is considered speculative and is
affected by a variety of world-wide economic, financial and political factors.
<PAGE> 2
For the twelve month period ended March 31, 1996, the Fund appreciated
27.3% versus the 23.3% increase in the average gold fund tracked by Lipper.
The Fund's total return from inception on July 11, 1994 through March 31, 1996
was 40.0% which equates to an average annual return of 21.6%. On March 31 our
shareholder base was 1,955 and net assets of the Fund were $19.9 million.
OUR INVESTMENT OBJECTIVE
The Fund's objective is to obtain long-term capital appreciation by
investing in the equity securities of foreign and domestic issuers principally
engaged in gold and gold-related activities.
OUR APPROACH
We look at a number of company specifics in order to determine which
gold stocks are relatively undervalued. Our primary focus is on capitalization
per ounce of production and, more importantly, on capitalization per ounce of
recoverable reserves. This determines how much gold actually backs every
dollar invested in a gold company. We appreciate that every mining company
must replace the gold that it mines, and we place a heavy emphasis on the
quality of management and their ability to create shareholder wealth. We
invest globally with an emphasis on gold-producing companies.
THE PORTFOLIO
GLOBAL ALLOCATION
The chart at the right presents the Fund's holdings by geographic
region as of March 31, 1996. The geographic allocation will change based on
future global market conditions.
[CHART]
HOLDINGS BY GEOGRAPHIC REGION - 3/31/96
South Africa 28.2%
North America 56.2%
Australia 12.0%
South America 2.0%
Europe 1.6%
Countries and/or regions or companies represented in the chart and
below may or may not be included in the Fund's portfolio in the future.
COMMENTARY
The most significant event for gold equity investors during the
quarter, in our opinion, was the announcement by Barrick Gold Corporation that
it had sharply curtailed its gold hedging activities. Barrick Gold, the
largest North American gold producer, is well known for its financial
management, particularly in the area of forward selling. During 1995, Barrick
Gold adjusted its gold hedge position to cover just under two years of
production against the former three years.
2
<PAGE> 3
The company gave two reasons for this significant change in its
forward sale program. First, during 1995, world demand for gold continued to
decisively exceed total production for the third consecutive year.
Demandoutstripped supply by 500 to 600 tonnes, compared with just 150 tonnes
two years ago. Yet, gold prices - defying normal free market behavior - did
not rise. Secondly, increased producer hedging needed to cover this supply
deficit caused gold lease rates to increase, which, together with the low
prevailing interest rates, made hedging less and less attractive.
In previous shareholder letters we have emphasized the attractive
supply and demand characteristics of the gold market. It is our belief that
the deficit may be considerably larger than Barrick Gold suggested in their
annual report. However, the absolute size of the deficit is probably not as
important as the trend which suggests that the gap will widen further in 1996.
This is based on continued strong jewelry demand, particularly in the Far East,
and static mine supply.
The gold price sprang to life in January, finally closing above $400
per ounce on January 22nd and reaching a high of $415 per ounce on February 2nd
before slipping below $400 per ounce on February 20th. It is disappointing
that the gold price has not been able to hold above $400 per ounce, but the
sharp up-turn coincided with the Chinese New Year celebration which
traditionally is a quiet time for fabrication demand. Also Belgium's central
bank sold over 200 tonnes of gold during this period. In their press release
they said the sale was to another central bank but internal gold market
observers believe this gold was sold into the market.
In the past there has been a close correlation between the Commodities
Research Bureau (CRB) index of leading commodities and the gold price. The CRB
index is now trading at its highest level since 1988 when the gold price was
nearer to $500 per ounce. Both the CRB index and the gold price bottomed in
early 1993, but during the past two years, while the CRB index has risen by
about 15%, the gold price in contrast has remained essentially unchanged. This
lack of correlation is likely to end. We believe that the gold price will
consolidate at levels just below $400 per ounce before moving higher and that
the downside risk for gold is limited.
Gold stocks have weakened a little from their highs but have held on
to most of their spectacular January gains. Clearly, gold equity investors
anticipate a better gold price. Most of the excitement in recent months has
surrounded exploration stocks following the success of BRE-X Minerals Ltd in
finding a massive gold resource in Indonesia. We concentrate on gold producing
companies which have good growth potential. Only a small portion of the
portfolio is likely to be invested in non-producing exploration stocks.
Indeed, during the past few months, two of the Fund's investments, Dayton
Mining Corporation and Bema Gold Corporation have commenced production.
We expect the gold mining industry to continue to consolidate. This
should benefit small to medium sized gold companies. During the quarter Battle
Mountain Gold Co. agreed to merge with Hemlo Gold Mines Inc., and more
recently, two of the Fund's holdings, International Gold Resources Corp. and
Golden Shamrock Mines Ltd. have agreed to be purchased by Ashanti Goldfields
Co. A number of other deals have also been announced in Australia and South
Africa. The Fund has holdings in a number of companies which we believe could
be attractive acquisition targets for reserve hungry larger producers.
3
<PAGE> 4
LET'S TALK STOCKS
The following are stock specifics on selected holdings of our Fund's
investments. Favorable EBITDA (earnings before interest, taxes, depreciation
and amortization) prospects do not necessarily translate into higher stock
prices, but they do express a positive trend which we believe will develop over
time.
Blyvooruitzicht Gold Mining Company Ltd. (BLYVY.O - $1.61 - NASDAQ) is one of
the oldest mines in South Africa and has produced over 35 million ounces of
gold since it opened in 1937. During recent years, the mine has been barely
profitable due to rising costs and poor grades. New management has introduced
a number of measures to improve profitability including restricting underground
mining and reducing the number of employees. In November 1995, the company
took over a neighboring mine which increases the reserve base and allows for
other significant operating efficiencies. The combined mines have 4.6 million
ounces of proven and profitable reserves, sufficient for about ten years of
mining and the investor is buying gold in the ground at under $15 per ounce.
Emperor Mines Ltd. (EMP.AX - $2.45 - Australian Stock Exchange) owns and
operates a gold mine on Viti Leru, which is the largest island in Fiji. Gold
has been mined at this location since the 1930s and, over its life, the mine
has produced approximately 5 million ounces. The company recently increased
its total gold resource by over 30%, to 3.4 million ounces. This compares with
production of about 130,000 ounces per year. Last September, new management
took control of the company and we expect increased capital expenditures which
will raise production and lower costs. Emperor is cheap relative to its
reserve base and does not hedge its gold production.
GoldCorp Inc. (GA.TO - $19.50 - Toronto Stock Exchange) was created by way of
reorganization at the end of March 1994. The reorganization combined the
assets of GoldCorp, Dickenson, Goldquest and CSA Management. The company has
three gold producing properties and two industrial mineral operations. We
believe that the company has the potential to increase reserves and production
at each of the three gold mines and production should rise from 125,000 ounces
of gold in 1994 to well over 200,000 in 1997. The company's major asset, the
Red Lake Mine, which is part of a major production camp in Canada, should be
able to increase production by 50,000 ounces following a $20 million capital
outlay. The company has a strong balance sheet, with cash and short-term
investments of $63 million and long-term debt of $12 million. GoldCorp is
undervalued relative to other mid-sized producers and we expect the new
management team to add significantly to shareholder value.
Guyanor Resources SA (GRE.TO - $7.82 - Toronto Stock Exchange) is a 70% owned
subsidiary of Golden Star Resources and was launched as a public company in
March 1995. The company was formed to hold Golden Star's interests in mineral
deposits in French Guyana in South America. French Guyana offers an excellent
combination of prospective geology, skilled work force and political stability.
The company intends to be a leader in the development of the gold mining
industry in French Guyana. Guyanor currently produces gold from an alluvial
mine and owns a number of potentially significant exploration targets
containing both gold and diamonds.
4
<PAGE> 5
Harmony Gold Mining Ltd. (HRMJ.J - $13.07 - Johannesburg Stock Exchange) is
located south of Johannesburg in the Orange Free State of South Africa and
produces about 650,000 ounces of gold per annum. The mine is one of the more
efficient underground gold mines in South Africa but profitability has been
hampered by poor grades. Recently management has placed an emphasis on grade
control and this has had a positive impact on the company's financial results.
Harmony has recently taken a 25% interest in Unisel Gold Mines Ltd with the
intention of taking full ownership. This will provide Harmony with cost
savings and growth potential.
Newmont Mining Corporation (NEM - $56.625 - NYSE) is entering an extended
period of high growth in gold production. Currently, Newmont has two producing
properties, namely Carlin, in Nevada, and Yannacocha in Peru. The former
produces about 1.6 million ounces of gold annually and Yannacocha, of which
Newmont owns 38%, will produce about 400,000 ounces in 1996. Yannacocha is one
example of Newmont's recent overseas exploration successes. During 1996,
Newmont will produce gold from two more properties, located in Uzbekistan and
Indonesia. We expect gold production to rise by 25% during the next three
years. Continued good exploration and development news will likely result in
Newmont doubling its production by the end of the decade.
Placer Dome Inc. (PDG - $28.875 - NYSE) is one of the leading gold mining
companies in North America. In 1995 the company produced 1.9 million ounces of
gold from thirteen mines at a cash cost of $217 per ounce. The company also
produces significant amounts of silver, copper and molybdenum. Placer Dome has
had significant overseas operations for many years and this experience is very
valuable as mineral rich countries formerly closed to outside mining investment
open their borders. The company discovered 30 million ounces of gold between
1991 and 1995 at a cost of $16 per ounce. This success should permit Placer
Dome to exceed its target of producing 2.5 million ounces of gold by the year
2000 with over 25 million ounces of proven and profitable reserves.
Randgold and Exploration Company (RNGJ.J - $4.27 - Johannesburg Stock Exchange)
is a South African mining and finance company which has interests in gold
mining companies that are listed on the Johannesburg Stock Exchange. The
company has three divisions: the gold division, which provides services for a
fee to five managed mines; the finance division; and the exploration and new
business division. In August, Randgold acquired First Wesgold Mining, and
shareholders voted in a new board of directors. We believe that new management
will be able to materially improve the profitability of the gold mining
operations and realize the value of the exploration properties which are
located in West Africa and South Africa. The Fund also has a holding in
Harmony Gold Mining Company, which is managed by Randgold.
Stillwater Mining Ltd. (PGMS - $21.25 - NASDAQ) is the only U.S. producer of
platinum and palladium, rare precious metals used in many industrial
applications and in the jewelry industry. The largest use for platinum is in
catalytic converters for the auto industry and about half of the supply of
palladium is consumed in the production of electric components for personal
computers and cellular telephones. Historically, the price of platinum has
traded at a premium to the gold price. The Stillwater mine has
5
<PAGE> 6
proven and probable reserves of 18.0 million ounces of platinum and palladium.
This is equivalent to more than 10 million ounces of gold. The mine life, at
the current rate of mining, is over 60 years and the company is currently
undertaking an expansion program which will double production within two years.
This will lower costs and improve profitability. Stillwater went public at the
end of 1994 and raised the necessary funds to finance the mine expansion.
TVX Gold, Inc. (TVX - $9.01 - NYSE) is a mid-sized gold producer with six
operating mines. Its largest mine is located in Chile and is a joint venture
with Placer Dome Inc. called La Coipa. Their other mines are located in
Brazil, Canada and the United States. The company has been very active in
pursuing a growth strategy, which includes acquisitions and exploration. In
particular, three new projects have the potential to add significantly to the
company's value. In Canada, TVX has a 32% interest in the exciting
Mussellwhite project. The Pachiatya property in Ecuador and the Kasperske
deposit in the Czech Republic both have tremendous potential. These projects
and other development work that the company is undertaking will probably result
in a doubling of reserves between the end of 1993 and December 1996.
MINIMUM INITIAL INVESTMENT - $1,000
The Fund's minimum initial investment for both regular and retirement
accounts is $1,000. There are no subsequent minimums. No initial minimum is
required for those establishing an Automatic Investment Plan. Furthermore,
Gabelli Gold Fund and many of our other Funds are available through the
no-transaction fee programs at many major discount brokerage firms.
GABELLI U.S. TREASURY MONEY MARKET FUND
Shareholders of any of the Gabelli Funds may invest in The Gabelli U.S.
Treasury Money Market Fund with an initial investment of $3,000 or more. The
Fund provides checkwriting and exchange privileges. The Fund's expenses are
capped at .30% of average net assets, making it one of the most attractive U.S.
Treasury-only money market funds. With dividends that are exempt from state and
local income taxes in all states, the Fund is an excellent vehicle in which to
store idle cash. An investment in The Gabelli U.S. Treasury Money Market Fund
is neither insured nor guaranteed by the U.S. Government and there can be no
assurance that the Fund will maintain a stable $1 per share net asset value.
Call us at 1-800-GABELLI (1-800-422-3554) for a prospectus which gives a more
complete description of the Fund, including management fees and expenses. Read
it carefully before you invest or send money.
INTERNET
You can now visit us on the Internet. Our home page at
http://www.gabelli.com contains information about Gabelli Funds, Inc., the
Gabelli Mutual Funds, quarterly reports, closing prices, IRAs, 401(k)s and
other current news. You can also send us e-mail at [email protected].
6
<PAGE> 7
IN CONCLUSION
The Fund's daily net asset value is available in the financial press
and each evening after 6:00 PM (Eastern Time) by calling 1-800-GABELLI
(1-800-422-3554). The Fund's NASDAQ symbol is GOLDX. Please call us during the
day for further information.
We thank you for your confidence in our investing abilities and wish
you a productive and financially rewarding 1996.
Sincerely,
/s/ CAESAR BRYAN
Caesar Bryan
President and Portfolio Manager
April 19, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
MARCH 31, 1996
--------------
<S> <C>
Stillwater Mining Ltd. Guyanor Resources SA
TVX Gold, Inc. Emperor Mines Ltd.
GoldCorp Inc. Harmony Gold Mining Ltd.
Randgold and Exploration Company Ltd. Placer Dome Inc.
Newmont Mining Corporation Int'l African Mining Gold Corp.
- --------------------------------------------------------------------------------
</TABLE>
NOTE: The views expressed in this report reflect those of the portfolio
manager only through the end of the period of this report as stated on the
cover. The manager's views are subject to change at any time based on market
and other conditions.
7
<PAGE> 8
GABELLI GOLD FUND, INC.
PORTFOLIO OF INVESTMENTS (UNAUDITED) -- MARCH 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
- ---------- ----------- -----------
<C> <S> <C> <C>
COMMON STOCKS -- 93.22%
METALS AND MINING --
93.22%
AUSTRALIA -- 9.51%
230,000 Climax Mining Ltd.+..... $ 199,677 $ 212,777
274,000 Emperor Mines Ltd.+..... 354,025 670,226
147,000 Mount Edon Gold Mines
Ltd. ................. 344,154 308,865
80,000 Ranger Minerals N.L.+... 235,400 294,784
140,000 Resolute Samantha
Ltd. ................. 279,858 367,696
100,000 Rhodes Mining N.L.+..... 15,897 12,936
36,000 Saint Barbara Mines
Ltd. ................. 39,677 21,168
----------- -----------
1,468,688 1,888,452
----------- -----------
EUROPE -- 1.61%
270,100 Glencar Explorations
plc+.................. 173,765 318,853
----------- -----------
NORTH AMERICA -- 52.76%
20,000 Colossal Resources
Company+.............. 66,755 165,563
67,000 Dayton Mining
Corporation+.......... 210,487 412,896
100,000 East Rand Proprietary
Mines - Unsponsored
ADR+.................. 70,000 83,000
8,800 Euro-Nevada Mining
Corporation........... 219,367 323,767
10,000 FirstMiss Gold Inc.+.... 270,625 275,000
4,750 Franco-Nevada Mining
Corporation........... 262,948 290,977
44,800 GoldCorp Inc. Cl. A+.... 232,748 873,584
30,000 Golden Star Resources
Ltd. ................. 203,512 413,907
25,000 Greenstone Resources
Ltd. ................. 97,792 188,558
94,200 Guyanor Resources SA+... 142,317 736,479
135,000 International African
Mining Gold
Corporation........... 564,587 571,192
56,000 International Gold
Resources
Corporation+.......... 168,659 226,637
70,000 Miramar Mining
Corporation+.......... 346,359 463,576
15,000 Newmont Mining
Corporation........... 711,375 849,375
51,000 North American Palladium
Ltd.+................. 298,995 267,750
80,000 Pan African Resources,
Ltd. ................. 58,975 82,414
30,000 Pegasus Gold Inc.+...... 375,237 441,501
19,200 Pioneer Group, Inc. .... 418,779 556,800
21,300 Placer Dome Inc. ....... 492,015 615,038
110,000 Royal Oak Mines Inc. ... 461,069 455,298
44,250 Stillwater Mining Ltd.
(a)(b)+............... 306,500 940,313
<CAPTION>
MARKET
SHARES COST VALUE
- ---------- ----------- -----------
<C> <S> <C> <C>
5,000 Stillwater Mining
Ltd.+................. $ 65,000 $ 106,250
104,000 TVX Gold, Inc.+......... 771,760 937,454
400,000 Venoro Gold
Corp. - A+............ 197,059 123,620
60,000 William Resources
Inc. ................. 53,605 74,614
----------- -----------
7,066,525 10,475,563
----------- -----------
SOUTH AFRICA -- 27.30%
146,000 Blyvooruitzicht Gold
Mining Ltd. .......... 313,700 234,774
135,000 Blyvooruitzicht Gold
Mining Ltd.
Unsponsored ADR....... 277,750 223,594
100,000 Deelkraal Gold+......... 110,000 113,065
180,000 Deelkraal Gold ADR+..... 332,548 203,598
27,500 Durban Roodepoort Deep,
Ltd.+................. 298,500 255,653
90,000 Grootvlei Proprietary
Mines Ltd. ........... 258,252 257,895
49,000 Harmony Gold Mining Ltd.
ADR................... 477,175 640,479
25,000 Impala Platinum Holdings
Ltd. ................. 562,500 403,125
10,000 Kloof Gold Mining
Company Ltd. ......... 122,500 127,500
305,000 Lebowa Platinum Mines
Limited+.............. 354,700 249,058
40,000 Loraine Gold Mines Ltd.
ADR+.................. 191,888 135,736
367,750 Northam Platinum
Limited+.............. 452,320 304,918
50,000 Randfontein Estates Gold
Mining Company Ltd.
ADR................... 377,198 421,035
203,547 Randgold and Exploration
Company Ltd.+......... 585,331 869,422
15,000 Randgold Resources,
Ltd. ................. 150,000 150,000
20,639 Rustenburg Platinum
Holdings Ltd. ........ 496,204 363,156
56,700 Saint Helena Gold Mines
Ltd. ................. 516,131 418,163
25,000 West Rand Consolidated
Mines Ltd. ........... 53,500 50,251
----------- -----------
5,930,197 5,421,422
----------- -----------
SOUTH AMERICA -- 2.04%
55,299 Cia De Minas
Buenaventura SA....... 172,946 405,242
----------- -----------
TOTAL COMMON STOCKS.................. 14,812,121 18,509,532
----------- -----------
</TABLE>
8
<PAGE> 9
GABELLI GOLD FUND, INC.
PORTFOLIO OF INVESTMENTS (UNAUDITED) -- MARCH 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
- ---------- ----------- -----------
<C> <S> <C> <C>
PREFERRED STOCKS -- 0.51%
SOUTH AFRICA -- 0.51%
11,000 Durban Roodepoort Deep,
Ltd. Pfd. ............ $ 73,519 $ 101,570
----------- -----------
TOTAL PREFERRED STOCKS.. 73,519 101,570
----------- -----------
WARRANTS -- 0.76%
AUSTRALIA -- 0.50%
180,500 Lone Star
Exploration+.......... 47,626 99,058
----------- -----------
SOUTH AFRICA -- 0.26%
11,000 Durban Roodepoort Deep,
Ltd. Options+......... 16,940 49,749
19,750 Northam Platinum
Limited+.............. 2,497 1,786
----------- -----------
19,437 51,535
----------- -----------
TOTAL WARRANTS.......... 67,063 150,593
----------- -----------
RIGHTS -- 0.08%
SOUTH AFRICA -- 0.08%
21,900 Blyvooruitzicht Gold
Mining Ltd. .......... 9,050 15,957
----------- -----------
TOTAL RIGHTS............ 9,050 15,957
----------- -----------
<CAPTION>
MARKET
SHARES COST VALUE
- ---------- ----------- -----------
<S> <C> <C>
CONVERTIBLE CORPORATE BONDS -- 5.12%
AUSTRALIA -- 2.00%
$ 350,000 Golden Shamrock Mine
Limited Sub. Deb. Cv.
7.50%, 5/03/00........ $ 350,000 $ 397,250
----------- -----------
NORTH AMERICA -- 3.12%
200,000 Atlas Corporation Sub.
Deb. Cv. 7.00%,
10/25/00(a)........... 200,000 242,000
200,000 Bema Gold Corporation
Sub. Deb. Cv. 7.50%,
2/28/00............... 200,000 376,000
----------- -----------
400,000 618,000
----------- -----------
TOTAL CONVERTIBLE CORPORATE BONDS....
750,000 1,015,250
----------- -----------
TOTAL INVESTMENTS -- 99.69% $15,711,753* 19,792,902
===========
Cash and Other Assets, in
excess of Liabilities -- 0.31% 62,457
-----------
NET ASSETS -- 100.00% $19,855,359
(1,418,124 shares outstanding) ===========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE.......................... $14.00
===========
</TABLE>
- ---------------
(a) Security is fair valued pursuant to procedures established by the Board of
Directors.
(b) Security restricted as to resale. This investment was acquired on September
14, 1994 and represents 4.74% of net assets at March 31, 1996.
(c) Interest rate represents annualized yield on date of purchase.
<TABLE>
<C> <C> <S> <C>
ADR -- American Depositary Receipt
+ -- Non-income producing security
* For Federal income tax purposes:
Aggregate cost................................ $15,711,753
==========
Gross unrealized appreciation................. $ 5,257,146
Gross unrealized depreciation................. (1,175,997)
-----------
Net unrealized appreciation................... $ 4,081,149
==========
</TABLE>
9
<PAGE> 10
(This Page Intentionally Left Blank)
10
<PAGE> 11
GABELLI FAMILY OF FUNDS
Distributed by Gabelli & Company, Inc.
One Corporate Center, Rye, NY 10580-1435
GABELLI ASSET FUND -------------------------------
Invests in a diversified portfolio of companies selling below their private
market value. The Fund's primary objective is to seek growth of capital.
(No-load)
Portfolio Manager: Mario J. Gabelli, CFA
GABELLI GROWTH FUND -----------------------------
Invests in a diversified portfolio of common stocks that have favorable, yet
undervalued, prospects for earnings growth. The Fund's primary objective is to
seek capital appreciation by employing an earnings-driven investment approach.
(No-load)
Portfolio Manager: Howard F. Ward, CFA
GABELLI VALUE FUND -------------------------------
Invests in a concentrated portfolio of securities of companies which are
selling below their private market value. The Fund's primary objective is
long-term capital appreciation. $250 initial minimum for IRAs.
Portfolio Manager: Mario J. Gabelli, CFA
Max. Sales charge: 5 1/2%
GABELLI SMALL CAP GROWTH FUND --------------------
Invests primarily in equity securities of smaller companies (companies with a
total market capitalization of less than $500 million) which are believed
likely to have rapid growth in revenues and earnings. The Fund's primary
objective is to seek capital appreciation.
Portfolio Manager: Mario J. Gabelli, CFA
Max. Sales charge: 4 1/2%
GABELLI EQUITY INCOME FUND ----------------------
Invests primarily in a portfolio of income producing equity securities. Pays
quarterly dividends. The Fund's primary objective is to seek a high level of
total return.
Portfolio Manager: Mario J. Gabelli, CFA
Max. Sales charge: 4 1/2%
GABELLI/WESTWOOD FUNDS --------------------------
Three investment portfolios, designed to pursue a variety of investment
objectives: Equity Fund seeks capital appreciation, Balanced Fund seeks income
and growth, and Intermediate Bond Fund seeks current income. (No-load)
Portfolio Managers: Susan Byrne & Pat Fraze
GABELLI GLOBAL SERIES ---------------------------
GABELLI GLOBAL TELECOMMUNICATIONS FUND
Invests in telecommunications companies throughout the world.
Targets undervalued companies with strong earnings per share
and cash flow dynamics. The Fund's primary objective is to
seek capital appreciation. (No-load)
Team Manager: Mario J. Gabelli, CFA
GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
Invests principally in bonds and preferred stocks which are
convertible into common stock of foreign and domestic
companies. The Fund's primary objective is to seek a high
level of total return through a combination of current income
and capital appreciation. (No-load)
Portfolio Manager: Hart Woodson
GABELLI GLOBAL INTERACTIVE COUCH POTATO(R) FUND
Invests in companies involved in communications, creativity
and copyright throughout the world. The Fund will also invest
in companies participating in emerging technological advances
in interactive services and products. The Fund's primary
objective is to seek capital appreciation. (No-load)
Portfolio Manager: Mario J. Gabelli, CFA
GABELLI GOLD FUND -------------------------------
Invests in a global portfolio of equity securities of gold mining and related
companies. The Fund's primary objective is to seek capital appreciation.
Investment in gold stocks is considered speculative and is affected by a
variety of worldwide economic, financial and political factors. (No-load)
Portfolio Manager: Caesar Bryan
GABELLI INTERNATIONAL GROWTH FUND ---------------
Invests in a diversified portfolio of equity securities of companies outside of
the U.S. Seeks to achieve international diversification and capital
appreciation, and to serve as a complement to a domestic investment portfolio.
(No-load)
Portfolio Manager: Caesar Bryan
The five funds above invest in foreign securities which involves risks not
ordinarily associated with investments in domestic issues, including currency
fluctuation, economic and political risks.
GABELLI U.S. TREASURY MONEY MARKET FUND ---------
Invests exclusively in short-term U.S. Treasury securities. The Fund's primary
objective is to provide high current income consistent with the preservation of
principal and liquidity. Features low expenses, free checkwriting, telephone
exchange and redemption privileges.
Portfolio Manager: Ronald Eaker
To request a prospectus, call 1-800-GABELLI (1-800-422-3554)
Or, visit our Internet homepage at: HTTP://WWW.GABELLI.COM
The prospectus(es) contain more complete information, including fees and
expenses, and should be read carefully prior to investing.
<PAGE> 12
GABELLI GOLD FUND, INC.
One Corporate Center
Rye, New York 10580-1434
1-800-GABELLI
[1-800-422-3554]
FAX: 1-914-921-5118
HTTP://WWW.GABELLI.COM
E-MAIL: [email protected]
(Net Asset Value may be obtained daily by calling
1-800-GABELLI after 6:00 P.M.)
<TABLE>
<CAPTION>
BOARD OF DIRECTORS
<S> <C>
Mario J. Gabelli, CFA Werner J. Roeder, MD
Chairman and Chief Director of Surgery
Investment Officer Lawrence Hospital
Gabelli Funds, Inc.
Anthonie C. van Ekris
E. Val Cerutti Managing Director
Chief Executive Officer BALMAC International, Inc.
Cerutti Consultants, Inc.
Daniel E. Zucchi
Anthony J. Colavita President
Attorney-at-Law Daniel E. Zucchi Associates
Anthony J. Colavita, P.C.
Karl Otto Pohl
Former President
Deutsche Bundesbank
<CAPTION>
OFFICERS
<S> <C>
Caesar Bryan Bruce N. Alpert
President and Vice President and Treasurer
Portfolio Manager
James E. McKee
Secretary
</TABLE>
DISTRIBUTOR
Gabelli & Company, Inc.
CUSTODIAN, TRANSFER AGENT AND
DIVIDEND AGENT
State Street Bank and Trust Company
LEGAL COUNSEL
Willkie Farr & Gallagher
- --------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of
Gabelli Gold Fund, Inc. It is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective prospectus.
- --------------------------------------------------------------------------------
[PHOTO]
GABELLI
GOLD
FUND,
INC.
FIRST QUARTER REPORT
MARCH 31, 1996
