REPORT OF INDEPENDENT AUDITORS


Unitholders, Trustee and Sponsor
United States Gold Trust



We have audited the  accompanying  statements of assets and  liabilities  of the
Bullion  Portfolio and the Coin Portfolio,  comprising United States Gold Trust,
as of December 31, 1998 and 1997,  including the schedules of  investments as of
December 31, 1998,  and the related  statements of operations and changes in net
assets for each of the three years in the period ended December 31, 1998 and the
selected  per unit data and  ratios  for each of the  years  since  1994.  These
financial  statements and per unit data and ratios are the responsibility of the
Trust's  management.  Our  responsibility  is to  express  an  opinion  on these
financial statements and per unit data and ratios based on our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable  assurance  about whether the financial  statements and per unit data
and ratios are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  Our procedures included  confirmation of investments as of December
31, 1998 and 1997, 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 selected per unit data and ratios
referred to above  present  fairly,  in all  material  respects,  the  financial
position of the Bullion  Portfolio  and the Coin  Portfolio,  comprising  United
States  Gold  Trust,  at  December  31,  1998 and  1997,  the  results  of their
operations  and  changes in their net assets for each of the three  years in the
period  ended  December  31, 1998 and the  selected per unit data and ratios for
each of the years since 1994, in conformity with generally  accepted  accounting
principles.

                                                               ERNST & YOUNG LLP

Chicago, Illinois
March 26, 1999

<PAGE>

























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<PAGE>

                              UNITED STATES GOLD TRUST
                      STATEMENTS OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
                                             Bullion Portfolio                Coin Portfolio
                                       ----------------------------     --------------------------
                                                December 31                     December 31
                                       ----------------------------     --------------------------
                                           1998            1997             1998           1997
                                       -----------      -----------     -----------    -----------

ASSETS
<S>                                     <C>             <C>              <C>             <C>
Investments, at value
  (based on bid side evaluation)
  (cost:  $1,495,233; $1,946,034;
   $2,007,945 and $2,819,351,
   respectively)
  Gold Bullion                         $ 1,169,627      $ 1,544,419     $         -    $         - 
  American Eagle Gold Coins                      -                -       1,582,111      2,240,736 
Cash                                       104,566            9,633          88,793              - 
Due from Sponsor                               858                -               -              - 
                                       -----------      -----------     -----------    ----------- 
  Total Assets                           1,275,051        1,554,052       1,670,904      2,240,736 
                
LIABILITIES    
               
Bank overdraft                                   -                -               -         43,724 
Payable to Sponsor                           2,708            3,645           4,087          5,274 
Payable to Trustee                           2,500            2,500           2,500          2,682 
Other accrued liabilities                        -              486           1,663          1,684 
                                       -----------      -----------     -----------    ----------- 
  Total Liabilities                          5,208            6,631           8,250         53,364 
                                       -----------      -----------     -----------    ----------- 
             
NET ASSETS                             $ 1,269,843      $ 1,547,421     $ 1,662,654    $ 2,187,372 
                                       ===========      ===========     ===========    =========== 
INTEREST OF UNITHOLDERS 
                    
Outstanding Units                          112,377          136,589         147,719        192,084 
                                       ===========      ===========     ===========    =========== 
Redemption Price per Unit   
  (based on bid side evaluation)       $     11.30      $     11.33     $     11.26    $     11.39 
                                       ===========      ===========     ===========    =========== 
Calculation of Offering Price per Unit: 
  Aggregate offering side evaluation   $ 1,279,628      $ 1,560,291     $ 1,694,904    $ 2,220,759 
                                       ===========      ===========     ===========    =========== 
                     
    Divided by outstanding Units       $     11.39      $     11.42     $     11.47    $     11.56 
                                     
  Plus sales charge of 1.96% of Offering 
    Price (2% of net amount invested)          .22              .23             .23            .23 
                                       -----------      -----------     -----------    ----------- 
                           
Offering Price per Unit                $     11.61      $     11.65     $     11.70    $     11.79 
                                       ===========      ===========     ===========    =========== 
</TABLE>                                                                       
                                                                               
                            See accompanying notes.

<PAGE>
<TABLE>
                            UNITED STATES GOLD TRUST
                            SCHEDULE OF INVESTMENTS
                               December 31, 1998
                               Bullion Portfolio
<CAPTION>
                                        Net Weight                       Value
       Refiner                      (Fine troy ounces)      (based on bid side evaluation)
---------------------               ------------------      ------------------------------
<S>                                     <C>                         <C>
DEGUSSA                                   300.557                    $    86,230
ENGELHARD                               1,485.702                        426,248
HANDY & HARMAN                            496.294                        142,387
JOHNSON & MATTHEY                         898.162                        257,683
MATTHEY BISHOP, USA                       199.562                         57,254
PAMP-SUISSE                               696.500                        199,825
                                        ---------                    -----------
Total (identified cost $1,495,233)      4,076.777                    $ 1,169,627
                                        =========                    ===========

</TABLE>





                            See accompanying notes.

<PAGE>
<TABLE>
                           UNITED STATES GOLD TRUST
                            SCHEDULE OF INVESTMENTS
                               December 31, 1998
                                 Coin Portfolio
<CAPTION>
                                                                          Value
                                            Coins             (based on bid side evaluation)
                                          --------            ------------------------------
<S>                                        <C>                          <C>
American Eagle gold coins, one ounce
 (fine weight), $50 denomination
 (identified cost $2,007,945)              5,366                         $1,582,111
                                           =====                         ==========
</TABLE>





                            See accompanying notes.



<PAGE>

                              UNITED STATES GOLD TRUST
                              STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>
                                                    Bullion Portfolio                                Coin Portfolio
                                       --------------------------------------------      ------------------------------------------

                                                Year Ended December 31                           Year Ended December 31
                                       --------------------------------------------      ------------------------------------------
                                           1998             1997            1996             1998            1997           1996
                                       -----------      -----------     -----------      -----------     -----------    -----------
<S>                                    <C>              <C>             <C>              <C>             <C>            <C>
Expenses (Note 3):
  Trustee fees                         $     2,500      $     2,500     $     2,500      $     2,500     $     2,682    $     3,932
  Sponsor fees                               2,708            3,645           4,620            4,087           5,274          7,864
  Gold storage fees                          2,688            2,293           3,090            3,908           3,284          5,163
  Professional fees                          4,700            4,650           4,500            4,700           4,650          4,500
  Other                                        500              500             500              500             500            500
                                       -----------      -----------     -----------      -----------     -----------    -----------
  Total expenses                            13,096           13,588          15,210           15,695          16,390         21,959
  Less: amount waived or
    absorbed by Sponsor                      8,193            6,956           6,829            8,298           6,796          7,694
                                       -----------      -----------     -----------      -----------     -----------    -----------

Net investment loss                         (4,903)          (6,632)         (8,381)          (7,397)         (9,594)       (14,265)

Net realized and unrealized gain 
 (loss) on investments (Notes 5 & 6):
  Net realized gain (loss)
    on investments                         (66,165)         (13,136)         21,678         (157,469)        (24,124)        53,901

  Net change in unrealized
    appreciation (depreciation)
    on investments                          76,009         (436,629)       (110,727)         152,781        (626,970)      (214,620)
                                       -----------      -----------     -----------      -----------     -----------    -----------

Net realized and unrealized
  gain (loss) on investments                 9,844         (449,765)        (89,049)          (4,688)       (651,094)      (160,719)
                                       -----------      -----------     -----------      -----------     -----------    -----------

Net increase (decrease) in net
  assets resulting from operations     $     4,941      $  (456,397)    $   (97,430)     $   (12,085)    $  (660,688)   $  (174,984)
                                       ===========      ===========     ===========      ===========     ===========    ===========




</TABLE>




                            See accompanying notes.
<PAGE>

                             UNITED STATES GOLD TRUST
                       STATEMENTS OF CHANGES IN NET ASSETS


<TABLE>
<CAPTION>
                                                    Bullion Portfolio                                Coin Portfolio
                                       --------------------------------------------      -----------------------------------------

                                                Year Ended December 31                           Year Ended December 31
                                       --------------------------------------------      -----------------------------------------
                                           1998            1997             1996              1998            1997         1996
                                       -----------     -----------      -----------      ------------    -----------   -----------
<S>                                    <C>              <C>             <C>              <C>              <C>           <C>
From Operations
  Net investment loss                  $    (4,903)    $    (6,632)     $    (8,381)      $    (7,397)   $    (9,594)  $   (14,265)
  Net realized gain (loss) on
    investments                            (66,165)        (13,136)          21,678          (157,469)       (24,124)       53,901
  Net change in unrealized 
    appreciation (depreciation) on
    investments                             76,009        (436,629)        (110,727)          152,781       (626,970)     (214,620)
                                       -----------     -----------      -----------       -----------    -----------   -----------
 Net increase (decrease) in net
    assets resulting from 
    operations                               4,941        (456,397)         (97,430)          (12,085)      (660,688)     (174,984)

From Unit Transactions
  Redemption of 24,212; 12,357;
    18,649; 44,365; 26,299 and
    66,476 Units, respectively            (282,519)       (157,160)        (282,421)         (512,633)      (344,430)   (1,029,379)
                                       -----------     -----------      -----------       -----------    -----------   -----------
  Net decrease in net
    assets from Unit transactions         (282,519)       (157,160)        (282,421)         (512,633)      (344,430)   (1,029,379)
                                       -----------     -----------      -----------       -----------    -----------   -----------
  Net decrease in net
    assets                                (277,578)       (613,557)        (379,851)         (524,718)    (1,005,118)   (1,204,363)
  Net assets at beginning of year        1,547,421       2,160,978        2,540,829         2,187,372      3,192,490     4,396,853
                                       -----------     -----------      -----------       -----------    -----------   -----------
  Net assets at end of year
    (including accumulated net
     investment loss of $80,339;
     $75,436; $68,804; $116,174;
     $108,777 and $99,183,
     respectively)                     $ 1,269,843     $ 1,547,421      $ 2,160,978       $ 1,662,654    $ 2,187,372   $ 3,192,490
                                       ===========     ===========      ===========       ===========    ===========   ===========

</TABLE>





                            See accompanying notes.

<PAGE>

                            UNITED STATES GOLD TRUST
                        SELECTED PER UNIT DATA AND RATIOS

<TABLE>
<CAPTION>

                                                                   Year Ended December 31 (a)(b)
                       ------------------------------------------------------------------------------------------------------------
                                1998                 1997                  1996                  1995                 1994
                       --------------------  --------------------  --------------------  --------------------- --------------------
                        Bullion     Coin      Bullion     Coin      Bullion     Coin      Bullion     Coin      Bullion     Coin
                       Portfolio  Portfolio  Portfolio  Portfolio  Portfolio  Portfolio  Portfolio  Portfolio  Portfolio  Portfolio
                       ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------

<S>                    <C>        <C>        <C>        <C>        <C>        <C>        <C>        <C>        <C>        <C>
Net asset value at 
  beginning of year    $   11.33  $   11.39  $   14.51  $   14.62  $   15.16  $   15.44  $   15.06  $   15.30  $   15.43  $   15.69

Net investment loss         (.04)      (.04)      (.05)      (.05)      (.05)      (.05)      (.05)      (.05)      (.05)      (.05)

Net realized and 
  unrealized gain (loss) 
  on investments             .01       (.09)     (3.13)     (3.18)      (.60)      (.77)       .15        .19       (.32)      (.34)
                       ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------

Increase (decrease) in 
  net asset value           (.03)      (.13)     (3.18)     (3.23)      (.65)      (.82)       .10        .14       (.37)      (.39)
                       ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------

Net asset value at end 
  of year              $   11.30  $   11.26  $   11.33  $   11.39  $   14.51  $   14.62  $   15.16  $   15.44  $   15.06  $   15.30
                       =========  =========  =========  =========  =========  =========  =========  =========  =========  =========


Ratios to average net assets:
Expenses (c)                .35%       .35%       .35%       .35%       .35%       .35%       .35%       .35%       .35%       .35%
Net investment loss (c)    (.35%)     (.35%)     (.35%)     (.35%)     (.35%)     (.35%)     (.35%)     (.35%)     (.35%)     (.35%)

Investment turnover         
  rate                      None       None       None       None       None       None       None      1.69%     14.24%      9.70%

Number of Units outstanding
   at end of year        112,377    147,719    136,589    192,084    148,946    218,383    167,595    284,859    202,173    334,788

Net assets at end of year
  (in thousands)       $   1,270  $   1,663  $   1,547  $   2,187  $   2,161  $   3,192  $   2,541  $   4,397  $   3,044  $   5,121
 
<FN>
Note:

(a)   The selected per unit data was calculated using average net assets during 
      the year.
(b)   The Trust's sole investment activity was to hold Gold, and the Trust had 
      no income.
(c)   During the years ended December 31, 1998,  1997, 1996, 1995  and 1994, the
      Sponsor reimbursed expenses totaling $8,193,  $6,956,  $6,829,  $6,655 and
      $6,852 for the Bullion Portfolio and $8,298,  $6,796,  $7,694,  $7,554 and
      $7,870 for the Coin  Portfolio,  respectively.  Absent the foregoing,  the
      ratios of expenses to average net assets and the ratios of net  investment
      loss to average net assets would have increased to .93%,  .72%, .64%, .58%
      and .56% for the Bullion Portfolio and .74%, .60%, .54%, .51% and .50% for
      the Coin Portfolio, respectively, for the years then ended.


</FN>
</TABLE>

<PAGE>
                             UNITED STATES GOLD TRUST
                         NOTES TO FINANCIAL STATEMENTS
                                December 31, 1998


1.   Description  of the Trust
     United States Gold Trust (the "Trust") is an investment  trust  established
     under the laws of New York in accordance  with an Agreement and Declaration
     of Trust (the "Trust  Agreement"),  dated August 17, 1988,  between Bullion
     Security Corporation (the "Sponsor") and United States Trust Company of New
     York (the "Trustee").  The Trust, which consists of a Bullion Portfolio and
     a Coin Portfolio (the  "Portfolios"),  commenced  investment  operations on
     August 18, 1988.  On  September  1, 1995,  Chase  Manhattan  Bank,  N.A., a
     subsidiary  of  Chase  Manhattan   Corporation,   acquired  the  securities
     processing business of the Trustee, including the rights and obligations of
     the  Trustee  under  the  Trust  Agreement.  Other  than the  change of the
     Trustee,  no changes were made to the Trust  Agreement or its provisions in
     connection with its acquisition by Chase Manhattan Bank, N.A.

2.   Significant accounting policies
     Value is based on the dealer bid price for wholesale  transactions  at 2:30
     p.m. Eastern Time. 

     On August 18,  1988,  25,000  Units of each  Portfolio  were  issued to the
     Sponsor in return for the deposit of gold bullion and  American  Eagle gold
     coins by the Sponsor.  Additional Units of each Portfolio may be issued, up
     to a maximum  aggregate of 1 million Units in each  Portfolio,  in exchange
     for  additional  deposits of gold bullion and American  Eagle gold coins by
     the  Sponsor.  The deposits  must be made so as not to vary the  underlying
     gold per Unit and net  asset  value per Unit of the  respective  Portfolio.
     Cost to investors  includes a sales  charge  computed at a rate of 1.96% of
     the  Offering  Price  (equivalent  to 2% of the  net  amount  invested).  A
     redeeming  Unitholder  may  elect  to be paid  in  cash at the  Portfolio's
     applicable  redemption  price,  based on the dealer bid price for wholesale
     transactions,  or  in  kind.  No  commissions  are  charged  on  redemption
     transactions.  Organizational  and offering  costs in  connection  with the
     formation of the Trust were borne by the Sponsor. On February 20, 1996, the
     Sponsor  decided to  terminate  the public  offering of Units in the Trust.
     Accordingly,  there  have been no Units of either  Portfolio  issued to the
     Sponsor in return for  deposits  of gold  bullion and  American  Eagle gold
     coins by the Sponsor since that date.

3.   Transactions with affiliates
     Under the Trust Agreement, the Trustee is to receive a fee for its ordinary
     services to the Trust,  payable monthly from the assets of the Trust, at an
     annual  rate equal to .10% of each  Portfolio's  average  daily net assets,
     subject to a minimum fee at the rate of $2,500 per year for each Portfolio.
     The  Sponsor is to receive a fee,  payable  monthly  from the assets of the
     Trust,  at an annual rate equal to .20% of each  Portfolio's  average daily
     net  assets.  The Trust  Agreement  provides  that,  with  respect  to each
     Portfolio, the Sponsor will reimburse the Trustee for each calendar year of
     the Trust, up to 50% of the Sponsor's fee for the year, as may be needed to
     reduce the annual  expense ratio of the  Portfolio to .35%.  During each of
     the  three  years in the  period  ended  December  31,  1998,  the  Sponsor
     voluntarily  reimbursed each Portfolio of the Trust  additional  amounts in
     order to maintain  its  expense  ratio at .35%.  The  Sponsor may  continue
     voluntarily  to make such  additional  reimbursements,  although  it is not
     required to do so, and has in fact  advised the Trustee of its intention to
     discontinue such voluntary reimbursements prospectively. Accordingly, there
     can be no assurance that the future expenses of the Trust can be maintained
     at .35% per year.




                          Continued on following page.

<PAGE>
                           UNITED STATES GOLD TRUST
                         NOTES TO FINANCIAL STATEMENTS
                                December 31, 1998


     For each of the three years in the period  ended  December  31,  1998,  the
     Trust had no income and made no distributions.  Trustee fees,  Sponsor fees
     and  amounts  waived or  absorbed  by the  Sponsor for the years then ended
     consisted of the following:


<TABLE>
<CAPTION>
                                                   Bullion Portfolio                               Coin Portfolio
                                         -------------------------------------         -------------------------------------
                                            1998          1997          1996              1998          1997          1996
                                         ---------     ---------     ---------         ---------     ---------     ---------
     <S>                                 <C>           <C>           <C>               <C>           <C>           <C>
     Trustee fees                        $   2,500     $   2,500     $   2,500         $   2,500     $   2,682     $   3,932
     Sponsor fees                            2,708         3,645         4,620             4,087         5,274         7,864
     Amounts waived or absorbed 
        by the Sponsor                       8,193         6,956         6,829             8,298         6,796         7,694


</TABLE>

     Pursuant to an  agreement  between the Sponsor and World Money  Securities,
     Inc.  ("WMS"),  a former  affiliate of the Sponsor,  WMS received  from the
     Sponsor a commission equal to 1.96% of the Offering Price of each Unit sold
     by the Trust.  For the years ended  December 31, 1998,  1997 and 1996,  WMS
     received commissions of $0, $0 and $1,167, respectively.  The agreement was
     terminated effective February 29, 1996 due to the liquidation of WMS.

4.   Federal income taxes
     The Trust has  received a ruling from the Internal  Revenue  Service to the
     effect that each  Portfolio  will be treated as a grantor trust for Federal
     income tax purposes and not as an association taxable as a corporation.  As
     a grantor trust,  each  Portfolio will not be treated as a taxable  entity;
     instead,  each Unitholder in a Portfolio will be treated as the owner of an
     undivided  interest in that Portfolio  equal to the  Unitholder's  pro rata
     portion of that Portfolio's assets.

5.   Investments
     There were no  investment  purchases  during the years ended  December  31,
     1998, 1997 and 1996.  Cost of sales of investments and redemptions  in-kind
     for the years then ended were as follows:

<TABLE>
<CAPTION>
                                                   Bullion Portfolio                               Coin Portfolio
                                         -------------------------------------         -------------------------------------
                                            1998          1997          1996              1998          1997          1996
                                         ---------     ---------     ---------         ---------     ---------     ---------
     <S>                                 <C>           <C>           <C>               <C>           <C>           <C>
     Sales                               $ 450,801     $ 146,124     $ 292,382         $ 733,658     $ 292,062     $ 468,043
     Redemptions in-kind                         -             -             -            77,748        62,370       521,870


</TABLE>

     For the years ended  December 31, 1998,  1997 and 1996,  the Coin Portfolio
     incurred net realized  losses of $11,161 and $6,227 and a net realized gain
     of $34,509,  respectively,  for redemptions  in-kind. The Bullion Portfolio
     incurred  no realized  gains or losses on  redemptions  in-kind  during the
     three years then ended. Also during that same period, the Bullion Portfolio
     incurred net realized losses of $66,165 and $13,136 and a net realized gain
     of $21,678,  respectively,  and the Coin  Portfolio  incurred  net realized
     losses  of  $146,308  and  $17,897  and a net  realized  gain  of  $19,392,
     respectively,  on the sale of  investments.  A  realized  gain or loss  for
     Federal  income  tax  purposes  is  recognized  only  upon the sale of gold
     bullion or American  Eagle gold  coins,  either by the Trust (in which case
     the gain or loss would be  allocated to all  Unitholders)or  by a redeeming
     Unitholder  who elects an in-kind  distribution  (in which case the gain or
     loss  would be that of the  redeeming  Unitholder  at the time of  ultimate
     sale).
                          Continued on following page.


<PAGE>
                            UNITED STATES GOLD TRUST
                         NOTES TO FINANCIAL STATEMENTS
                                December 31, 1998


     Based on the cost of  investments  of  $1,495,233  and  $1,946,034  for the
     Bullion  Portfolio and $2,007,945 and $2,819,351 for the Coin Portfolio for
     Federal  income tax purposes at December  31, 1998 and 1997,  respectively,
     the aggregate  gross and net unrealized  depreciation  on investments  were
     $325,606 and $401,615 for the Bullion  Portfolio  and $425,834 and $578,615
     for the Coin Portfolio, respectively.

6.   Composition of net assets
     At December 31, 1998 and 1997, net assets consisted of the following:

<TABLE>
<CAPTION>
                                                      Bullion Portfolio                        Coin Portfolio
                                              -------------------------------         -------------------------------
                                                    1998            1997                    1998            1997     
                                              --------------   --------------         --------------    -------------
     <S>                                      <C>              <C>                    <C>               <C>     
                                          
       Cost of investments                    $    1,495,233   $    1,946,034         $    2,007,945    $   2,819,351
       Net unrealized depreciation
         on investments                             (325,606)        (401,615)              (425,834)        (578,615)
       Accumulated assets (liabilities) 
         in excess of Trust (liabilities) 
         assets other than investments               100,216            3,002                 80,543          (53,364)
                                              --------------   --------------         --------------    -------------
                                              $    1,269,843   $    1,547,421         $    1,662,654    $   2,187,372
                                              ==============   ==============         ==============    =============
</TABLE>


7.   Year 2000 problem
     The ability of the Trustee to perform its duties and obligations  under the
     Trust Agreement is substantially  dependent on the continued  functionality
     of its computer  system.  The  maintenance of the books and records of each
     Portfolio of the Trust,  including asset pricing,  investment  transactions
     and  Unitholder  accounting,  could be  adversely  affected if the computer
     systems  used  by the  Sponsor  or  Trustee  do not  properly  process  and
     calculate date-related  information and data from and after January 1, 2000
     (the "Year 2000  Problem").  The  Sponsor is taking  what it believes to be
     reasonable  steps to  address  the Year 2000  Problem  as it relates to the
     Trust and has received representations that corollary steps are being taken
     by the Trustee.  At this time,  there can be no assurance  that these steps
     will be sufficient to avoid any adverse impact resulting from the Year 2000
     Problem on the operations of the Trust.


<PAGE>





           Trustee                                       UNITED STATES
             Chase Manhattan Bank, N.A.                    GOLD TRUST
             270 Park Avenue
             New York, New York 10017

           Transfer Agent
             Chase Global Funds Services Company
             P.O. Box 2798
             Boston, Massachusetts 02208
             (for overnight delivery services,
             73 Tremont Street
             Boston, Massachusetts 02108)
             1-800-341-8900
             In Mass. 1-617-557-8000

           Custodian
             Republic National Bank of New York
             452 Fifth Avenue                               including
             New York, New York  10018
                                                      the Bullion Portfolio
           Sponsor
             Bullion Security Corporation                      and
             625 Second Street
             Petaluma, California 94952                the Coin Portfolio

           Independent Auditors
             Ernst & Young LLP
             Sears Tower
             233 South Wacker Drive
             Chicago, Illinois 60606




                  Investor's
              Information Office
             207 Jefferson Square
             Austin, Texas 78763                          ANNUAL REPORT
          1-800-531-5142 Nationwide                     December 31, 1998
       Local or Foreign 1-512-453-7558
          Telecopier 1-512-453-2015