[Graphics of flags omitted]
GABELLI GOLD FUND, INC.
ANNUAL REPORT - DECEMBER 31, 1999
[Photo of Caesar Bryan omitted]
CAESAR BRYAN
TO OUR SHAREHOLDERS,
The gold market settled down during the fourth quarter of 1999 following
the sharp rise in prices and increased volatility that followed the European
Central Banks' positive statement on gold reserves in September.
During the quarter the gold price fell from $300 per ounce to $289 per
ounce. This price compares with a twenty-year low of under $253 per ounce that
was reached during the summer. We believe that the current price is a reasonable
retracement of some of gold's recent gains and we expect the price to rally from
its current levels. In a broader context, most base metals and commodity prices
bottomed in the fourth quarter of 1998 at roughly the same time as bond prices
peaked. However, with short sellers active in the gold market and uncertainties
concerning Central Bank holdings of gold, the price continued to decline until
recently. Gold and most commodities have probably seen their low for this cycle,
and although gold has certainly lagged the other commodities we expect this
under performance to end.
INVESTMENT PERFORMANCE
For the fourth quarter ended December 31, 1999, The Gabelli Gold Fund's
(the "Fund") net asset value declined 7.57%. The Lipper Gold Fund Average and
Philadelphia Gold & Silver ("XAU") Index of large North American gold companies
declined 10.46% and 15.16%, respectively, over the same period. The XAU index is
an unmanaged indicator of stock market and investment performance, while the
Lipper average reflects the average performance of mutual funds classified in
this particular category. The Fund was up 10.07% for 1999. The Lipper Gold Fund
Average and XAU Index rose 3.63% and 6.47%, respectively, over the same
twelve-month period.
For the five-year period ended December 31, 1999, the Fund's total return
averaged (10.69)% annually versus average annual total returns of (11.11)% and
(8.10)% for the Lipper Gold Fund Average and XAU Index, respectively. Since
inception on July 11, 1994 through December 31, 1999, the Fund had a cumulative
decline of 37.08%, which equates to an average annual return of (8.11)%.
<PAGE>
INVESTMENT RESULTS (a)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Quarter
--------------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
<S> <C> <C> <C> <C> <C>
1999: Net Asset Value ....................... $5.45 $5.39 $6.74 $6.23 $6.23
Total Return .......................... (3.7)% (1.1)% 25.1% (7.6)% 10.1%
- --------------------------------------------------------------------------------------------------------------
1998: Net Asset Value ....................... $6.63 $5.68 $6.17 $5.66 $5.66
Total Return .......................... 12.9% (14.3)% 8.6% (8.3)% (3.6)%
- --------------------------------------------------------------------------------------------------------------
1997: Net Asset Value ....................... $11.83 $9.79 $9.17 $5.87 $5.87
Total Return .......................... (4.0)% (17.2)% (6.3)% (35.4)% (51.9)%
- --------------------------------------------------------------------------------------------------------------
1996: Net Asset Value ....................... $14.00 $13.40 $13.46 $12.32 $12.32
Total Return .......................... 22.7% (4.3)% 0.4% (8.5)% 8.0%
- --------------------------------------------------------------------------------------------------------------
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>
- ----------------------------------------------
Average Annual Returns - December 31, 1999 (a)
- ----------------------------------------------
1 Year ............................. 10.07%
5 Year ............................. (10.69)%
Life of Fund (b) ................... (8.11)%
- ----------------------------------------------
Dividend History
- -------------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
- ----------------- -------------- ------------------
December 29, 1997 $0.058 $5.86
(a) Total returns and average annual returns reflect changes in share price and
reinvestment of dividends and are net of expenses. The net asset value of the
Fund is reduced on the ex-dividend (payment) date by the amount of the dividend
paid. 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 may be worth more or less than their
original cost. (b) From commencement of investment 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 worldwide economic, financial and political factors.
- --------------------------------------------------------------------------------
OUR INVESTMENT OBJECTIVE
The Fund's objective is to obtain long term capital appreciation by
investing in 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.
2
<PAGE>
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
THE GABELLI GOLD FUND, THE LIPPER GOLD FUND AVERAGE AND
THE PHILADELPHIA GOLD & SILVER INDEX
[Line Graph omitted--plot points as follows]
Gabelli Lipper Gold Philadelphia Gold
Gold Fund Fund Average & Silver Index
7/11/94 $10,000 $10,000 $10,000
12/94 11,070 10,040 9,940
12/95 11,413 9,476 10,948
12/96 12,326 10,189 10,614
12/97 5,926 5,879 6,745
12/98 5,714 5,237 5,909
12/99 6,100 5,427 6,500
actual 6,289 actual 6,291
*PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
GLOBAL ALLOCATION
The accompanying chart presents the Fund's holdings by geographic region
as of December 31, 1999. The geographic allocation will change based on current
global market conditions. Countries and/or regions represented in the chart and
below may or may not be included in the Fund's future portfolio.
HOLDINGS BY GEOGRAPHIC REGION - 12/31/99
[Pie chart omitted--plot points as follows]
North America 58.1%
South Africa 33.5%
Australia 6.7%
Europe 1.7%
COMMENTARY
Gold equities usually provide investors with a leveraged play on movements
in the price of gold. For example, historically, a five percent rise in the
price of gold would result in a ten to fifteen percent (or more) rise in the
price of gold equities. However, this was not the case recently when the gold
price shot up from $250 to over $325 per ounce. Why not? First and foremost,
investors were discouraged when two medium-sized gold producers, Ashanti and
Cambior, found themselves in difficulty because of their imprudent hedging
activities. As a consequence, the whole sector suffered. Also, gold equities did
not decline in the summer as the price of gold hit two-decade lows.
3
<PAGE>
We have often stressed that the industry has hurt itself by the high level
of hedging which, we believe, has helped to depress the gold price. Indeed, it
remains the policy of the fund to concentrate the portfolio on companies that
hedge less than the average gold company. A hedged gold company does not provide
the investor with a leveraged play on a higher gold price. The Fund's largest
holdings, such as Harmony Gold Mining, Newmont Mining, Gold Fields,
Freeport-McMoRan Copper & Gold and Homestake Mining, have minimal levels of
hedging. Others, such as Barrick Gold and Anglogold, have sold forward
significant portions of their future production but have outstanding mines and
good growth prospects. Indeed, during the quarter, reflecting investors' fears,
Newmont Mining declined by 5.3% and Barrick Gold fell by 18.7%.
As a result of investors' muted response to the move in the gold price,
gold equities are very cheap relative to their history. Looking ahead, we
believe the market will differentiate amongst gold companies, and reward those
that have adopted a conservative financial policy.
We believe that the gold price will rally further following its recent
consolidation and that gold equities will once again provide investors with a
leveraged play on movements in the gold price. The building blocks are in place,
which will likely create an environment that will encourage investors to raise
their exposure to gold and gold equities. These building blocks include a limit
on central bank selling, less producer hedging and continued high levels of
speculation in many of the world's financial markets.
DISCOVERING HIDDEN TREASURES
During the quarter, the Fund's best performing equities included Impala
Platinum, Stillwater Mining and Northam Platinum, all of which are involved with
platinum production. Platinum has benefited, along with most base metals, from
the upturn in the global economy. However, the Fund's best performer was
Freeport-McMoRan Copper & Gold, which recovered from having been depressed due
to investor fear concerning Indonesia, where the massive Grasburg Mine is
located.
LET'S TALK STOCKS
The following are stock specifics on selected holdings of our Fund.
Favorable earnings prospects do not necessarily translate into higher stock
prices, but they do express a positive trend which we believe will develop over
time. The share prices of foreign holdings are stated in U.S. dollar equivalent
terms as of December 31, 1999.
ANGLOGOLD LTD. (ANGJ.J - $51.44 - JOHANNESBURG STOCK EXCHANGE) is the world's
largest gold producer at nearly seven million ounces per year. The company
generates strong cash flow, which allows it to undertake substantial investments
in exploration and development in addition to paying a significant dividend.
Anglogold operates thirteen mines in South Africa in addition to Mali and
Namibia. The company also gained exposure to the United States, Brazil and
Argentina through a transaction with Minorco. Anglogold continues to strive to
reduce costs and diversify mining risks to create wealth for its shareholders in
a competitive environment.
4
<PAGE>
FRANCO-NEVADA MINING CORP. (FN.TO - $15.34 - TORONTO STOCK EXCHANGE) is one of
the world's largest public precious metals royalty companies since its merger
with its sister company, Euro-Nevada. The company has taken advantage of
depressed commodity prices to acquire assets at bargain levels, providing a
foundation for future growth. Euro-Nevada was focused on international gold
royalties while Franco-Nevada's focus had been North American royalties. The
company maintains a policy of not hedging its gold and has a strong balance
sheet with no debt.
GOLDCORP INC. (GA.TO - $5.85 - TORONTO STOCK EXCHANGE) is a mid-sized Canadian
gold producer with two producing gold mines and two industrial mineral
operations. The company's most significant asset is the Red Lake Mine, which is
part of a major gold camp in Canada. Exploration drilling has revealed
previously unknown high-grade ore zones, which will add significantly to the
mine's reserves. These new discoveries will result in increased production at
significantly lower costs. GoldCorp is undervalued relative to other mid-sized
producers and we expect management to add significantly to shareholder value.
GOLD FIELDS LTD. (GFLJ.J - $4.53 - JOHANNESBURG STOCK EXCHANGE) is South
Africa's second largest gold producer and was created by the amalgamation of a
number of South African mines. The company controls the vast gold mines of Kloof
and Driefontein as well as smaller mines in South Africa. Outside South Africa,
Gold Fields is bringing a mine to production in Ghana and is continually seeking
other opportunities. The company is largely unhedged and debt free.
HARMONY GOLD MINING LTD. (HARJ.J - $6.42 - JOHANNESBURG STOCK EXCHANGE) is a
medium sized gold company producing over one million ounces of gold per year.
The company has developed a core competency in mining low-grade ore from
underground very efficiently. Harmony Gold Mining has taken these skills and
applied their techniques to other poorly managed mines with success. Any small
increase in the gold price will likely have a very positive impact on profits,
as the company is unhedged.
IMPALA PLATINUM HOLDINGS LTD. (IMPAY - $40.35 - NASDAQ) mines and markets
platinum and other platinum group metals such as palladium, rhodium and nickel.
Impala is the second largest producer of palladium and platinum in the world, as
well as one of the lowest cost producers. The company is realizing the benefits
of a production drive coupled with a cost reduction plan. Impala also continues
to improve its balance sheet and build its cash balance in order to fund new
projects.
NEWMONT MINING CORP. (NEM - $24.50 - NYSE) is North America's largest gold
producer, yielding upwards of four million ounces annually. The company has
utilized the cash flow generated by its very successful Nevada operations to
expand overseas. Newmont also has a 51% interest in Minera Yanacocha (Latin
America's largest gold producing mine), a 50% interest in a joint venture in
Uzbekistan, and an interest in Indonesia's first heap-leaching operation. The
company is only modestly hedged and is highly leveraged to a rising gold price.
PLACER DOME INC. (PDG - $10.75 - NYSE) is one of the world's lowest cost gold
producers. Placer Dome has fifteen operational mines in Australia, Chile, Papua
New Guinea, South Africa and the United States. The company's focus on large,
low-cost mines continues to drive efficient production. Placer Dome has
developed a joint venture with Western Areas Limited to develop the largest
undeveloped ore-body in the Witwatersrand region of South Africa and has agreed
to merge with Getchell Gold to develop and operate two mines in Nevada.
5
<PAGE>
MINIMUM INITIAL INVESTMENT - $1,000
The Fund's minimum initial investment for both regular and retirement
accounts is $1,000. There are no subsequent investment minimums. No initial
minimum is required for those establishing an Automatic Investment Plan.
Additionally, The Gabelli Gold Fund and other Gabelli Funds are available
through the no-transaction fee programs at many major discount brokerage firms.
INTERNET
You can now visit us on the Internet. Our home page at
http://www.gabelli.com contains information about Gabelli Asset Management Inc.,
the Gabelli Mutual Funds, IRAs, 401(k)s, quarterly reports, closing prices and
other current news. You can send us e-mail at [email protected].
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
business day for further information.
Sincerely,
/s/ signature
CAESAR BRYAN
President and Portfolio Manager
January 31, 2000
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
DECEMBER 31, 1999
-----------------
Harmony Gold Mining Ltd. Placer Dome Inc.
Freeport-McMoRan Copper and Gold Inc. Franco-Nevada Mining Corp.
Newmont Mining Corp. GoldCorp Inc.
Impala Platinum Holdings Ltd. Agnico-Eagle Mines Ltd.
Gold Fields Ltd. Anglogold Ltd.
- --------------------------------------------------------------------------------
NOTE: The views expressed in this report reflect those of the portfolio manager
only through the end of the period stated in this report. The manager's views
are subject to change at any time based on market and other conditions.
6
<PAGE>
GABELLI GOLD FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
-------- -------- ---------
COMMON STOCKS -- 101.6%
METALS AND MINING -- 101.6%
AUSTRALIA -- 6.8%
570,000 Lihir Gold Ltd.+ ........... $ 705,407 $ 415,368
570,000 Normandy Mining Ltd. ....... 582,633 404,141
103,000 Ranger Minerals NL+ ........ 268,784 148,763
----------- -----------
1,556,824 968,272
----------- -----------
IRELAND -- 0.8%
214,771 Glencar Explorations plc+ .. 140,524 108,164
----------- -----------
NORTH AMERICA -- 59.0%
91,000 Agnico-Eagle Mines Ltd. .... 669,828 670,808
35,000 Barrick Gold Corp. ......... 713,812 619,063
47,189 Franco-Nevada
Mining Corp. .............. 768,873 724,099
58,000 Freeport-McMoRan Copper
& Gold Inc., Cl. B+ ....... 929,901 1,225,250
122,900 GoldCorp Inc., Cl. A+ ...... 590,061 718,397
94,200 Guyanor Resources
SA, Cl. B+ ................ 142,317 30,019
80,000 Homestake Mining Co. ....... 784,733 625,000
244,700 IAM Gold+ .................. 793,246 550,935
80,000 Meridian Gold Inc.+ ........ 296,534 545,000
168,800 Moydow Mines
International Inc.+(a) .... 103,662 216,335
22,437 New Venoro Gold Corp. ...... 88,428 2,798
43,700 Newmont Mining Corp. ....... 945,720 1,070,650
68,000 Placer Dome Inc. ........... 703,376 731,000
20,025 Stillwater Mining Co.+ ..... 243,540 638,297
----------- -----------
7,774,031 8,367,651
----------- -----------
SOUTH AFRICA -- 34.0%
20,000 Anglo American
Platinum Corp. Ltd. ........ 546,692 607,636
8,529 Anglogold Ltd. (a) ......... 575,717 438,713
8,400 Anglogold Ltd., ADR ........ 188,214 215,775
21,658 Ashanti Goldfields Ltd. (a) 1,897 2,166
46,000 Gold Fields Ltd. (a) ....... 283,275 208,437
147,249 Gold Fields Ltd., ADR ...... 657,486 711,723
116,326 Harmony Gold
Mining Co. Ltd. ........... 586,014 746,528
80,000 Harmony Gold
Mining Co. Ltd., ADR ...... 410,314 502,500
23,000 Impala Platinum Holdings
Ltd., ADR ................. 274,525 928,050
367,750 Northam Platinum Ltd.+ ..... 452,320 460,061
----------- -----------
3,976,454 4,821,589
----------- -----------
MARKET
SHARES COST VALUE
-------- -------- ---------
UNITED KINGDOM -- 1.0%
34,273 Randgold Resources
Ltd., ADR+ ................. $ 316,886 $ 137,092
----------- -----------
TOTAL COMMON STOCKS ......... 13,764,719 14,402,767
----------- -----------
WARRANTS -- 0.2%
SOUTH AFRICA -- 0.0%
23,630 Durban Roodepoort
Deep Ltd., Ser. B+ ......... 54,682 8,062
----------- -----------
NORTH AMERICA -- 0.2%
50,000 Golden Star Resources Ltd.+ . 0 24,247
----------- -----------
TOTAL WARRANTS .............. 54,682 32,309
----------- -----------
TOTAL
INVESTMENTS -- 101.8% ...... $13,819,401 14,435,077
===========
OTHER ASSETS AND
LIABILITIES (NET) -- (1.8%) .............. (258,206)
-----------
NET ASSETS -- 100.0%
(2,273,785 shares outstanding) ........... $14,176,871
===========
NET ASSET VALUE,
OFFERING AND REDEMPTION
PRICE PER SHARE .......................... $6.23
=====
For Federal tax purposes:
Aggregate cost ............................ $14,233,062
===========
Gross unrealized appreciation ............. $ 2,000,678
Gross unrealized depreciation ............. (1,798,663)
-----------
Net unrealized appreciation ............... $ 202,015
===========
------------------------
(a) Security fair valued under procedures established by the Board of
Directors.
+ Non-income producing security.
ADR - American Depositary Receipt.
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
-------------------------- ------- -----------
North America 58.1% $ 8,391,898
South Africa 33.5% 4,829,651
Asia/Pacific Rim 6.7% 968,272
Europe 1.7% 245,256
----- -----------
100.0% $14,435,077
===== ===========
See accompanying notes to financial statements.
7
<PAGE>
GABELLI GOLD FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ASSETS:
Investments, at value (Cost $13,819,401) ................ $ 14,435,077
Foreign currency, at value (Cost $7,829) ................ 7,774
Receivable for Fund shares sold ......................... 111,883
------------
TOTAL ASSETS ............................................ 14,554,734
------------
LIABILITIES:
Payable for Fund shares redeemed ........................ 37,500
Payable for investment advisory fees .................... 11,471
Payable for distribution fees ........................... 2,868
Payable to custodian .................................... 270,000
Other accrued expenses .................................. 56,024
------------
TOTAL LIABILITIES ....................................... 377,863
------------
NET ASSETS applicable to 2,273,785
shares outstanding .................................... $ 14,176,871
============
NET ASSETS CONSIST OF:
Shares of capital stock, at par value $ ................. $ 2,274
Additional paid-in capital .............................. 20,967,188
Accumulated net investment loss ......................... (222,651)
Accumulated net realized loss on investments
and foreign currency transactions ..................... (7,185,561)
Net unrealized appreciation on investments
and foreign currency transactions ..................... 615,621
------------
TOTAL NET ASSETS ........................................ $ 14,176,871
============
NET ASSET VALUE, offering and redemption
price per share ($14,176,871 / 2,273,785
shares outstanding; unlimited number of
shares authorized of $0.001 par value) ................ $6.23
=====
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends (net of foreign taxes of $1,674) .............. $ 183,839
Interest ................................................ 18,722
-----------
TOTAL INVESTMENT INCOME ................................. 202,561
-----------
EXPENSES:
Investment advisory fees ................................ 132,754
Distribution fees ....................................... 33,184
Legal and audit fees .................................... 29,668
Shareholder communications expenses ..................... 29,549
Shareholder services fees ............................... 28,186
Registration fees ....................................... 27,231
Custodian fees .......................................... 15,921
Organizational expenses ................................. 10,123
Interest expense ........................................ 2,027
Miscellaneous expenses .................................. 6,825
-----------
TOTAL EXPENSES .......................................... 315,468
-----------
NET INVESTMENT LOSS ..................................... (112,907)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized loss on investments and
foreign currency transactions ......................... (1,935,270)
Net change in unrealized appreciation
on investments and foreign currency
transactions .......................................... 2,863,796
-----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS ................................. 928,526
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ....................................... $ 815,619
============
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment loss .................................................................. $ (112,907) $ (221,481)
Net realized loss on investments and foreign currency transactions ................... (1,935,270) (3,093,749)
Net change in unrealized appreciation on investments
and foreign currency transactions .................................................. 2,863,796 1,873,747
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...................... 815,619 (1,441,483)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net increase in net assets from capital share transactions ........................... 2,085,442 4,620,443
------------ ------------
NET INCREASE IN NET ASSETS ........................................................... 2,901,061 3,178,960
NET ASSETS:
Beginning of period .................................................................. 11,275,810 8,096,850
------------ ------------
End of period ........................................................................ $ 14,176,871 $ 11,275,810
============ ============
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
GABELLI GOLD FUND, INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. ORGANIZATION. The Gabelli Gold Fund, Inc. (the "Fund") was organized on May
13, 1994 as a Maryland corporation. The Fund is a diversified, open-end
management investment company registered under the Investment Company Act of
1940, as amended (the "1940 Act"). The Fund's primary objective is long term
capital appreciation. The Fund commenced investment operations on July 11, 1994.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange, quoted by the National Association of Securities
Dealers Automated Quotations, Inc. ("Nasdaq") or traded on foreign exchanges are
valued at the last sale price on that exchange as of the close of business on
the day the securities are being valued (if there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day, except for open short positions, which are
valued at the last asked price). All other portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest average of the bid and asked prices. Portfolio securities traded on more
than one national securities exchange or market are valued according to the
broadest and most representative market, as determined by Gabelli Funds, LLC
(the "Adviser"). Securities and assets for which market quotations are not
readily available are valued at their fair value as determined in good faith
under procedures established by and under the general supervision of the Board
of Directors. Short term debt securities with remaining maturities of 60 days or
less are valued at amortized cost, unless the Directors determine such does not
reflect the securities' fair value, in which case these securities will be
valued at their fair value as determined by the Directors. Debt instruments
having a maturity greater than 60 days are valued at the highest bid price
obtained from a dealer maintaining an active market in those securities. Options
are valued at the last sale price on the exchange on which they are listed. If
no sales of such options have taken place that day, they will be valued at the
mean between their closing bid and asked prices.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
primary government securities dealers recognized by the Federal Reserve Board,
with member banks of the Federal Reserve System or with other brokers or dealers
that meet credit guidelines established by the Directors. Under the terms of a
typical repurchase agreement, the Fund takes possession of an underlying debt
obligation subject to an obligation of the seller to repurchase, and the Fund to
resell, the obligation at an agreed-upon price and time, thereby determining the
yield during the Fund's holding period. The Fund will always receive and
maintain securities as collateral whose market value, including accrued
interest, will be at least equal to 100% of the dollar amount invested by the
Fund in each agreement. The Fund will make payment for such securities only upon
physical delivery or upon evidence of book entry transfer of the collateral to
the account of the custodian. To the extent that any repurchase transaction
exceeds one business day, the value of the collateral is marked-to-market on a
daily basis to maintain the adequacy of the collateral. If the seller defaults
and the value of the collateral declines or if bankruptcy proceedings are
commenced with respect to the seller of the security, realization of the
collateral by the Fund may be delayed or limited.
9
<PAGE>
GABELLI GOLD FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
FORWARD FOREIGN EXCHANGE CONTRACTS. The Fund may engage in forward foreign
exchange contracts for hedging a specific transaction with respect to either the
currency in which the transaction is denominated or another currency as deemed
appropriate by the Adviser. Forward foreign exchange contracts are valued at the
forward rate and are marked-to-market daily. The change in market value is
included in unrealized appreciation/depreciation on investments and foreign
currency transactions. When the contract is closed, the Fund records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate fluctuations in
the underlying prices of the Fund's portfolio securities, but it does establish
a rate of exchange that can be achieved in the future. Although forward foreign
exchange contracts limit the risk of loss due to a decline in the value of the
hedged currency, they also limit any potential gain/(loss) that might result
should the value of the currency increase. In addition, the Fund could be
exposed to risks if the counterparties to the contracts are unable to meet the
terms of their contracts.
FOREIGN CURRENCY TRANSLATION. The books and records of the Fund are maintained
in United States (U.S.) dollars. Foreign currencies, investments and other
assets and liabilities are translated into U.S. dollars at the exchange rates
prevailing at the end of the period, and purchases and sales of investment
securities, income and expenses are translated at the exchange rate prevailing
on the respective dates of such transactions. Unrealized gains and losses, which
result from changes in foreign exchange rates and/or changes in market prices of
securities, have been included in unrealized appreciation/depreciation on
investments and foreign currency transactions. Net realized foreign currency
gains and losses resulting from changes in exchange rates include foreign
currency gains and losses between trade date and settlement date on investment
securities transactions, foreign currency transactions and the difference
between the amounts of interest and dividends recorded on the books of the Fund
and the amounts actually received. The portion of foreign currency gains and
losses related to fluctuation in exchange rates between the initial trade date
and subsequent sale trade date is included in realized gain/(loss) on
investments.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
Dividend income is recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions, if
any, to shareholders are recorded on the ex-dividend date. Income distributions
and capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Fund, timing differences and
differing characterization of distributions made by the Fund.
For the year ended December 31, 1999, reclassifications were made to decrease
accumulated net investment loss for $137,272 and increase accumulated net
realized loss on investments and foreign currency transactions for $46,140 with
an offsetting adjustment to additional paid-in capital.
10
<PAGE>
GABELLI GOLD FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
PROVISION FOR INCOME TAXES. The Fund intends to continue to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code of
1986, as amended. As a result, a Federal income tax provision is not required.
Dividends and interest from non-U.S. sources received by the Fund are generally
subject to non-U.S. withholding taxes at rates ranging up to 30%. Such
withholding taxes may be reduced or eliminated under the terms of applicable
U.S. income tax treaties, and the Fund intends to undertake any procedural steps
required to claim the benefits of such treaties. If the value of more than 50%
of the Fund's total assets at the close of any taxable year consists of stocks
or securities of non-U.S. corporations, the Fund is permitted and may elect to
treat any non-U.S. taxes paid by it as paid by its shareholders.
The Fund has a net capital loss carryforward for Federal income tax purposes at
December 31, 1999 of $6,994,551. This capital loss carryforward is available to
reduce future distributions of net capital gains to shareholders. $6,761 of the
loss carryforward is available through 2002; $307,937 is available through 2003;
$491,124 is available through 2004; $1,244,045 is available through 2005;
$2,746,705 is available through 2006; and $2,197,979 is available through 2007.
3. INVESTMENT ADVISORY AGREEMENT. The Fund has entered into an investment
advisory agreement (the "Advisory Agreement") with the Adviser which provides
that the Fund will pay the Adviser a fee, computed daily and paid monthly, at
the annual rate of 1.00% of the value of the Fund's average daily net assets. In
accordance with the Advisory Agreement, the Adviser provides a continuous
investment program for the Fund's portfolio, oversees the administration of all
aspects of the Fund's business and affairs and pays the compensation of all
Officers and Directors of the Fund who are its affiliates.
4. DISTRIBUTION PLAN. The Fund's Board of Directors has adopted a distribution
plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act. For the year ended
December 31, 1999, the Fund incurred distribution costs payable to Gabelli &
Company, Inc., an affiliate of the Adviser, of $33,184, or 0.25% of average
daily net assets, the annual limitation under the Plan. Such payments are
accrued daily and paid monthly.
5. ORGANIZATIONAL EXPENSES. The organizational expenses of the Fund are being
amortized on a straight-line basis over a period of 60 months.
6. PORTFOLIO SECURITIES. Purchases and sales of securities for the year ended
December 31, 1999, other than short term securities, aggregated $9,375,432 and
$6,810,686, respectively.
7. LINE OF CREDIT. The Fund has access to an unsecured line of credit up to
$25,000,000 from the custodian for temporary borrowing purposes. Borrowings
under this arrangement bear interest at 0.75% above the Federal Funds rate on
outstanding balances. There were $270,000 of borrowings outstanding at December
31, 1999.
The average daily amount of borrowings outstanding within the year ended
December 31, 1999 was $36,715, with a related weighted average interest rate of
5.52%. The maximum amount borrowed at any time within the year ended December
31, 1999 was $860,000.
11
<PAGE>
GABELLI GOLD FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
8.CAPITAL STOCK TRANSACTIONS. Transactions in shares of capital stock were as
follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998
------------------------ ----------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Shares sold .................................................. 4,955,177 $ 30,261,203 9,430,921 $ 59,452,171
Shares issued upon reinvestment of dividends .................. -- -- -- --
Shares redeemed ...............................................(4,672,009) (28,175,761) (8,819,870) (54,831,728)
--------- ------------ --------- ------------
Net increase .............................................. 283,168 $ 2,085,442 611,051 $ 4,620,443
========= ============ ========= ============
</TABLE>
9. NEW SHARE CLASSES. On March 9, 1999, the Board of Directors of the Fund
approved a Rule 18f-3 Multi-Class Plan relating to the creation of three
additional classes of shares of the Fund - Class A Shares, Class B Shares and
Class C Shares (the "New Share Classes"). The existing class of shares was
redesignated as Class AAA Shares. In addition, the Board had also approved an
Amended and Restated Distribution Agreement, Rule 12b-1 plans for each of the
New Share Classes and an Amended and Restated Plan of Distribution for the
existing class of shares (Class AAA Shares) to be effective upon the
commencement of the offering of the New Share Classes. The New Share Classes are
currently not being offered to the public.
12
<PAGE>
GABELLI GOLD FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
OPERATING PERFORMANCE:
Net asset value, beginning of period .............. $ 5.66 $ 5.87 $ 12.32 $11.41 $ 11.07
------- ------- ------- ------- -------
Net investment loss ............................... (0.03) (0.03) (0.26) (0.19)(a) (0.15)(a)
Net realized and unrealized gain (loss)
on investments .................................. 0.60 (0.18) (6.13) 1.10 0.49
------- ------- ------- ------- -------
Total from investment operations .................. 0.57 (0.21) (6.39) 0.91 0.34
------- ------- ------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
In excess of net investment income ................ -- -- (0.06) -- --
------- ------- ------- ------- -------
Total distributions ............................... -- -- (0.06) -- --
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD .................... $ 6.23 $ 5.66 $ 5.87 $ 12.32 $ 11.41
======= ======= ======= ======= =======
Total return+ ..................................... 10.1% (3.6)% (51.9)% 8.0% 3.1%
======= ======= ======= ======= =======
RATIOS TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .............. $14,177 $11,276 $8,097 $16,963 $14,510
Ratio of net investment loss
to average net assets ........................... (0.85)% (1.82)% (2.60)% (1.41)% (1.12)%
Ratio of operating expenses
to average net assets (b) ....................... 2.38% 2.98% 3.24% 2.17% 2.25%
Portfiolio turnover rate .......................... 52% 63% 27% 54% 38%
</TABLE>
- ------------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends.
(a Based on average month-end shares outstanding.
(b) The Fund incurred interest expense during the years ended December 31, 1999,
1998 and 1997. If interest expense had not been incurred, the ratios of
operating expenses to average net assets would have been 2.36%, 2.93% and
3.10%, respectively. In addition, the ratio for the year ended December 31,
1997 does not include a reduction of expenses for custodian fee credits.
Including such credits, the ratio would have been 3.23%.
See accompanying notes to financial statements.
13
<PAGE>
GABELLI GOLD FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors of
Gabelli Gold Fund, Inc.
We have audited the accompanying statement of assets and liabilities of the
Gabelli Gold Fund, Inc. (the "Fund"), including the portfolio of investments, as
of December 31, 1999, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of December 31, 1999, by correspondence with
the custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Gabelli Gold Fund, Inc. as of December 31, 1999, and the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States.
/s/ Signature
Ernst & Young, LLP
New York, New York
February 11, 2000
14
<PAGE>
- --------------------------------------------------------------------------------
GABELLI FAMILY OF FUNDS
- --------------------------------------------------------------------------------
GABELLI ASSET FUND--------------------------------------------------------------
Seeks to invest primarily in a diversified portfolio of common stocks selling at
significant discounts to their private market value. The Fund's primary
objective is growth of capital. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI GROWTH FUND-------------------------------------------------------------
Seeks to invest primarily in large cap stocks believed to have favorable, yet
undervalued, prospects for earnings growth. The Fund's primary objective is
capital appreciation. (NO-LOAD)
PORTFOLIO MANAGER: HOWARD F. WARD, CFA
GABELLI WESTWOOD EQUITY FUND----------------------------------------------------
Seeks to invest primarily in the common stock of seasoned companies believed to
have proven records and above average historical earnings growth. The Fund's
primary objective is capital appreciation. (NO-LOAD)
PORTFOLIO MANAGER: SUSAN M. BYRNE
GABELLI SMALL CAP GROWTH FUND---------------------------------------------------
Seeks to invest primarily in common stock of smaller companies (market
capitalizations less than $500 million) believed to have rapid revenue and
earnings growth potential. The Fund's primary objective is capital appreciation.
(NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI BLUE CHIP VALUE FUND----------------------------------------------------
Seeks long-term growth of capital through investment primarily in the common
stocks of well-established, high quality companies that have market
capitalizations of greater than $5 billion. (NO-LOAD)
PORTFOLIO MANAGER: BARBARA MARCIN, CFA
GABELLI WESTWOOD SMALLCAP EQUITY FUND-------------------------------------------
Seeks to invest primarily in smaller capitalization equity securities - market
caps of $1 billion or less. The Fund's primary objective is long-term capital
appreciation. (NO-LOAD)
PORTFOLIO MANAGER: LYNDA CALKIN, CFA
GABELLI WESTWOOD INTERMEDIATE BOND FUND-----------------------------------------
Seeks to invest in a diversified portfolio of bonds with various maturities. The
Fund's primary objective is total return. (NO-LOAD)
PORTFOLIO MANAGER: PATRICIA FRAZE
GABELLI EQUITY INCOME FUND------------------------------------------------------
Seeks to invest primarily in equity securities with above market average yields.
The Fund pays quarterly dividends and seeks a high level of total return with an
emphasis on income. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI WESTWOOD BALANCED FUND--------------------------------------------------
Seeks to invest in a balanced and diversified portfolio of stocks and bonds. The
Fund's primary objective is both capital appreciation and current income.
(NO-LOAD)
PORTFOLIO MANAGERS: SUSAN M. BYRNE & PATRICIA FRAZE
GABELLI WESTWOOD MIGHTY MITES[SERVICE MARK] FUND--------------------------------
Seeks to invest in micro-cap companies that have market capitalizations of $300
million or less. The Fund's primary objective is long-term capital appreciation.
(NO-LOAD)
TEAM MANAGED: MARIO J. GABELLI, CFA,
MARC J. GABELLI, LAURA K. LINEHAN AND
WALTER K. WALSH
GABELLI VALUE FUND--------------------------------------------------------------
Seeks to invest in securities of companies believed to be undervalued. The
Fund's primary objective is long-term capital appreciation. MAX. SALES CHARGE:
5 1/2%
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI UTILITIES FUND----------------------------------------------------------
Seeks to provide a high level of total return through a combination of capital
appreciation and current income. (NO-LOAD)
PORTFOLIO MANAGER: TIMOTHY O'BRIEN, CFA
GABELLI ABC FUND----------------------------------------------------------------
Seeks to invest in securities with attractive opportunities for appreciation or
investment income. The Fund's primary objective is total return in various
market conditions without excessive risk of capital loss. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI MATHERS FUND------------------------------------------------------------
Seeks long-term capital appreciation in various market conditions without
excessive risk of capital loss. (NO-LOAD)
PORTFOLIO MANAGER: HENRY VAN DER EB, CFA
GABELLI U.S. TREASURY MONEY MARKET FUND-----------------------------------------
Seeks to invest 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. (NO-LOAD)
PORTFOLIO MANAGER: JUDITH A. RANERI
GABELLI CASH MANAGEMENT SHARES OF
THE TREASURER'S FUND------------------------------------------------------------
Three money market portfolios designed to generate superior returns without
compromising portfolio safety. U.S. Treasury Money Market seeks to invest in
U.S. Treasury bills, notes and bonds. Tax Exempt Money Market seeks to invest in
municipal securities. Domestic Prime Money Market seeks to invest in prime
quality, domestic money market instruments. (NO-LOAD)
PORTFOLIO MANAGER: JUDITH A. RANERI
AN INVESTMENT IN THE ABOVE MONEY MARKET FUNDS IS NEITHER INSURED NOR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY GOVERNMENT AGENCY. ALTHOUGH
THE FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS.
GLOBAL SERIES
GABELLI GLOBAL TELECOMMUNICATIONS FUND
Seeks to invest in telecommunications companies throughout the world -
targeting undervalued companies with strong earnings and cash flow dynamics.
The Fund's primary objective is capital appreciation. (NO-LOAD)
TEAM MANAGED: MARIO J. GABELLI, CFA,
MARC J. GABELLI AND IVAN ARTEAGA, CFA
GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
Seeks to invest principally in bonds and preferred stocks which are
convertible into common stock of foreign and domestic companies. The Fund's
primary objective is total return through a combination of current income and
capital appreciation. (NO-LOAD)
PORTFOLIO MANAGER: HART WOODSON
GABELLI GLOBAL GROWTH FUND
Seeks capital appreciation through a disciplined investment program focusing
on the globalization and interactivity of the world's marketplace. The Fund
invests in companies at the forefront of accelerated growth. The Fund's
primary objective is capital appreciation. (NO-LOAD)
PORTFOLIO MANAGER: MARC J. GABELLI
GABELLI GLOBAL OPPORTUNITY FUND
Seeks to invest in common stock of companies which have rapid growth in
revenues and earnings and potential for above average capital appreciation or
are undervalued. The Fund's primary objective is capital appreciation.
(NO-LOAD)
PORTFOLIO MANAGERS: MARC J. GABELLI
AND CAESAR BRYAN
GABELLI GOLD FUND---------------------------------------------------------------
Seeks to invest in a global portfolio of equity securities of gold mining and
related companies. The Fund's objective is long-term capital appreciation.
Investment in gold stocks is considered speculative and is affected by a variety
of world-wide economic, financial and political factors. (NO-LOAD)
PORTFOLIO MANAGER: CAESAR BRYAN
GABELLI INTERNATIONAL GROWTH FUND-----------------------------------------------
Seeks to invest in the equity securities of foreign issuers with long-term
capital appreciation potential. The Fund offers investors global
diversification. (NO-LOAD)
PORTFOLIO MANAGER: CAESAR BRYAN
THE SIX FUNDS ABOVE INVEST IN FOREIGN SECURITIES WHICH INVOLVES RISKS NOT
ORDINARILY ASSOCIATED WITH INVESTMENTS IN DOMESTIC ISSUES, INCLUDING CURRENCY
FLUCTUATION, ECONOMIC AND POLITICAL RISKS. THE FUNDS LISTED ABOVE ARE
DISTRIBUTED BY GABELLI & COMPANY, INC.
- --------------------------------------------------------------------------------
TO RECEIVE A PROSPECTUS, CALL 1-800-GABELLI (422-3554). THE
PROSPECTUS GIVES A MORE COMPLETE DESCRIPTION OF THE FUND,
INCLUDING FEES AND EXPENSES. READ THE PROSPECTUS CAREFULLY
BEFORE YOU INVEST OR SEND MONEY.
VISIT OUR WEBSITE AT:
WWW.GABELLI.COM
OR, CALL:
1-800-GABELLI
1-800-422-3554 [BULLET] 914-921-5100 [BULLET]
FAX: 914-921-5118 [BULLET] [email protected]
ONE CORPORATE CENTER, RYE, NEW YORK 10580
<PAGE>
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.)
BOARD OF DIRECTORS
Mario J. Gabelli, CFA Werner J. Roeder, MD
CHAIRMAN AND CHIEF MEDICAL DIRECTOR
INVESTMENT OFFICER LAWRENCE HOSPITAL
GABELLI ASSET MANAGEMENT INC.
E. Val Cerutti Anthonie C. van Ekris
CHIEF EXECUTIVE OFFICER MANAGING DIRECTOR
CERUTTI CONSULTANTS, INC. BALMAC INTERNATIONAL, INC.
Anthony J. Colavita Daniel E. Zucchi
ATTORNEY-AT-LAW PRESIDENT
ANTHONY J. COLAVITA, P.C. DANIEL E. ZUCCHI ASSOCIATES
Karl Otto Pohl
FORMER PRESIDENT
DEUTSCHE BUNDESBANK
OFFICERS AND PORTFOLIO MANAGERS
Caesar Bryan Bruce N. Alpert
PRESIDENT AND VICE PRESIDENT
PORTFOLIO MANAGER AND TREASURER
James E. McKee
SECRETARY
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.
- --------------------------------------------------------------------------------
GAB008Q499SR
[PHOTO OF MARIO GABELLI OMITTED]
GABELLI
GOLD
FUND,
INC.
ANNUAL REPORT
DECEMBER31, 1999
