UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number_811-01700

__Franklin Gold and Precious Metals Fund
(Exact name of registrant as specified in charter)

One Franklin Parkway

, San Mateo, CA  94403-1906

(Address of principal executive offices)           (Zip code)

Craig S. Tyle, One Franklin Parkway, San Mateo, CA  94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code:_650 312-2000

Date of fiscal year end: 7/31

Date of reporting period:_7/31/20

Item 1.  Reports to Stockholders.

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Gold

and

Precious

Metals

Fund

July

31,

2020

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up

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January

1,

2021,

as

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the

SEC,

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Fund’s

shareholder

reports

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the

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or

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Guarantee

franklintempleton.com

Not

part

of

the

annual

report

1

Shareholder

Letter

Dear

Shareholder:

During

the

12

months

ended

July

31,

2020,

global

economies

generally

grew

through

the

end

of

2019

amid

concerns

about

trade

but

contracted

in

2020’s

first

two

quarters

as

the

world

sought

to

slow

the

spread

of

the

novel

coronavirus

(COVID-19)

pandemic.

Many

equity

investors

shifted

to

government

bonds

and

cash

starting

in

early

2020,

and

major

central

banks

acted

swiftly

to

maintain

financial

stability

and

ease

monetary

policy.

The

European

Central

Bank

launched

its

Pandemic

Emergency

Purchase

Programme

in

April

2020,

and

the

U.S.

Federal

Reserve

(Fed),

which

lowered

the

federal

funds

target

rate

three

times

in

2019,

lowered

the

rate

twice

in

March

2020

in

response

to

the

pandemic

and

revived

programs

from

the

Great

Recession

designed

to

add

liquidity

to

credit

markets.

In

this

environment,

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index,

and

global

developed

market

stocks,

as

measured

by

the

MSCI

World

Index,

ended

the

period

with

solid

positive

returns.

Gold

reached

its

2019

high

in

September

before

retreating

in

2019’s

last

quarter

as

new

exchange-traded

fund

buying

of

the

metal

slowed

beginning

in

October.

1

A

phase

one

U.S.-

China

trade

deal

and

a

better

global

economy

supported

investments

generally

perceived

as

riskier

in

late

2019,

curbing

gold

prices

despite

the

U.S.

dollar’s

decline

against

most

currencies

and

an

expanding

global

money

supply.

However,

starting

in

January

2020,

gold

prices

pushed

higher

on

the

back

of

strong

financial

demand

despite

some

volatility,

ultimately

reaching

a

record

high

at

period-end

as

investors

sought

perceived

safe

haven

assets

amid

uncertainty

about

global

economic

growth,

geopolitics

and

the

impact

of

the

COVID-19

pandemic

on

financial

markets.

1

The

Fed’s

more

accommodative

monetary

policy

and

lower

global

bond

yields

also

increased

demand

for

gold

and

gold-mining

equities.

In

this

environment,

gold

stocks,

as

measured

by

the

FTSE

®

Gold

Mines

Index,

posted

a

total

return

of

+64.51%

for

the

12-month

period.

2

We

are

committed

to

our

long-term

perspective

and

disciplined

investment

approach

as

we

conduct

a

rigorous,

fundamental

analysis

of

securities

with

a

regular

emphasis

on

investment

risk

management.

We

believe

active,

professional

investment

management

serves

investors

well.

We

also

recognize

the

important

role

of

financial

advisors

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well-positioned

for

the

years

ahead.

Franklin

Gold

and

Precious

Metals

Fund’s

annual

report

includes

more

detail

about

prevailing

conditions

and

discussions

about

investment

decisions

during

the

period.

Please

remember

all

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin

Templeton,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Edward

Perks,

CFA

President

and

Chief

Executive

Officer

–

Investment

Management

Franklin

Gold

and

Precious

Metals

Fund

This

letter

reflects

our

analysis

and

opinions

as

of

July

31,

2020

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

CFA

®

is

a

trademark

owned

by

CFA

Institute.

1.

Source:

Bloomberg

LP.

Based

on

spot

prices

quoted

in

U.S.

dollars

per

troy

ounce.

2.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Annual

Report

2

Contents

Annual

Report

Franklin

Gold

and

Precious

Metals

Fund

.............

3

Performance

Summary

...........................

8

Your

Fund’s

Expenses

............................

11

Financial

Highlights

and

Statement

of

Investments

....

12

Financial

Statements

.............................

20

Notes

to

Financial

Statements

.....................

23

Report

of

Independent

Registered

Public

Accounting

Firm

............................

36

Tax

Information

..................................

37

Board

Members

and

Officers

.......................

38

Shareholder

Information

..........................

42

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Franklin

Gold

and

Precious

Metals

Fund

This

annual

report

for

Franklin

Gold

and

Precious

Metals

Fund

covers

the

fiscal

year

ended

July

31,

2020

.

Your

Fund’s

Goals

and

Main

Investments

The

Fund’s

investment

goal

is

capital

appreciation.

Its

secondary

goal

is

to

provide

shareholders

with

current

income

through

dividends

or

interest

received

from

its

investments.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

securities

of

gold

and

precious

metals

operation

companies.

The

Fund

primarily

invests

in

equity

securities,

mainly

common

stock,

and

also

invests

in

American,

global

and

European

depositary

receipts.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+68.05%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Fund’s

primary

benchmark,

the

sector-specific

FTSE

Gold

Mines

Index,

which

comprises

companies

whose

principal

activity

is

gold

mining,

posted

a

+64.51%

total

return.

1

The

Fund’s

secondary

benchmark,

the

Standard

&

Poor’s

500

Index

(S&P

500

®

),

which

is

a

broad

measure

of

U.S.

stock

performance,

posted

a

+11.96%

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

8

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index,

advanced

during

the

12-month

period.

Stocks

posted

strong

returns

for

the

first

five

months

of

the

reporting

period,

but

fell

sharply

in

early

2020

amid

investor

fears

of

a

global

economic

slowdown

due

to

the

novel

coronavirus

(COVID-19)

pandemic,

which

drove

many

investors

to

sell

equity

holdings

in

favor

of

investments

perceived

as

safe,

such

as

government

bonds

and

cash.

During

the

last

four

months

of

the

period,

global

equities

rebounded

due

to

optimism

about

easing

lockdown

restrictions,

vaccine

development

and

government

stimulus

measures.

Nevertheless,

a

second

wave

of

infections

and

expected

restrictions,

as

well

as

renewed

tensions

between

the

U.S.

and

China,

weighed

on

investor

sentiment.

In

the

U.S.,

a

strong

labor

market

and

solid

consumer

spending

drove

economic

growth

through

February

2020.

However,

government

mandates

to

mitigate

the

pandemic

beginning

in

March

caused

stiff

headwinds

for

the

U.S.

economy

and

equity

markets.

As

a

result,

the

unemployment

rate

surged

to

14.7%

in

April

as

many

businesses,

particularly

those

involved

in

hospitality,

retail

and

travel,

announced

mass

layoffs.

2

According

to

the

National

Bureau

of

Economic

Research,

the

longest

U.S.

economic

expansion

in

history

ended

in

February

2020,

and

the

country

slipped

into

a

deep

recession.

Equities

began

to

rebound

in

the

spring

amid

declining

jobless

claims,

a

decreasing

unemployment

rate,

rising

retail

sales

and

optimism

about

treatments

and

potential

vaccines

for

COVID-19.

However,

surging

infection

rates

in

June

and

July

dampened

economic

activity,

weekly

jobless

claims

increased,

and

second-quarter

2020

gross

domestic

product

contracted

at

the

fastest

annualized

rate

on

U.S.

record.

Geographic

Composition

7/31/20

%

of

Total

Net

Assets

Canada

47.1%

Australia

19.6%

United

States

9.2%

South

Africa

7.4%

Tanzania

4.6%

Kyrgyzstan

3.1%

Egypt

2.4%

Ivory

Coast

2.4%

Turkey

1.5%

Other

1.7%

Short-Term

Investments

&

Other

Net

Assets

1.0%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

2.

Source:

U.S.

Bureau

of

Labor

Statistics

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

16

.

Franklin

Gold

and

Precious

Metals

Fund

4

franklintempleton.com

Annual

Report

3.

Source:

Bloomberg

LP.

Based

on

spot

prices

quoted

in

U.S.

dollars

per

troy

ounce

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

U.S.

Federal

Reserve

(Fed)

supported

the

U.S.

economy

both

before

and

after

the

onset

of

the

pandemic,

lowering

the

federal

funds

target

rate

three

times

in

2019

to

a

range

of

1.50%–1.75%.

In

March

2020,

the

Fed

implemented

two

emergency

rate

cuts,

lowering

the

federal

funds

target

rate

to

a

range

of

0.00%–0.25%,

and

announced

sweeping

quantitative

easing

measures

aimed

at

ensuring

credit

flows

to

borrowers

and

supporting

credit

markets

with

unlimited

amounts

of

bond

purchasing.

In

the

eurozone,

some

analysts

forecasted

a

significant

contraction

in

2020,

particularly

in

southern

European

countries,

as

the

magnitude

of

the

pandemic’s

economic

disruption

became

apparent.

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index,

declined

slightly

for

the

period.

However,

easing

lockdowns

and

robust

fiscal

stimulus

measures

late

in

the

reporting

period

led

to

a

significant

rebound

from

the

March

2020

lows.

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index,

advanced

during

the

12-month

period.

Before

the

pandemic,

Asian

stocks

were

aided

by

easing

trade

tensions

and

the

U.S.-

China

phase

one

trade

agreement.

However,

the

pandemic

brought

dramatically

slower

economic

activity

in

Asia,

as

many

businesses

halted

operations,

and

manufacturing

and

export

activity

fell

sharply

in

the

region’s

major

economies.

Asian

markets

generally

advanced

late

in

the

period,

bolstered

by

COVID-19

vaccine

hopes,

fiscal

stimulus

measures

and

economies

reopening

throughout

the

region.

Emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index,

also

advanced

for

the

12-month

period

despite

severe

pandemic-related

declines

and

sharply

lower

commodity

prices,

which

hurt

emerging

market

economies

reliant

on

these

exports.

During

the

last

four

months

of

the

reporting

period,

however,

improving

economic

activity,

higher

oil

prices,

and

U.S.

dollar

weakness

led

to

strong

equity

performance.

Precious

Metals

Sector

Overview

After

starting

the

12-month

period

at

$1,414

per

ounce,

gold

reached

its

2019

peak

of

$1,553

per

ounce

in

September

before

retreating

in

2019’s

last

quarter

as

new

exchange-

traded

fund

buying

of

the

metal

slowed

starting

in

the

first

half

of

October.

3

A

phase

one

U.S.-China

trade

deal

and

improvement

in

global

economic

data

supported

investments

generally

perceived

as

riskier

in

late

2019,

keeping

gold

prices

in

check

despite

the

additional

lift

from

the

U.S.

Precious

Metals

Prices

(7/31/19–7/31/20

)*

*Source:

Bloomberg

LP.

Amounts

shown

are

based

on

spot

prices

quoted

in

US

dollars

per

troy

ounce.

For

illustrative

purposes

only;

not

representative

of

the

Fund’s

portfolio

composition

or

performance

in

check

despite

the

additional

lift

from

the

U.S.

dollar’s

decline

against

most

currencies

and

an

expanding

global

money

supply.

A

recovery

in

U.S.

Treasury

yields

also

cooled

the

gold

rally

through

the

autumn

months.

However,

starting

in

January

2020,

gold

prices

pushed

higher

on

the

back

of

strong

financial

demand

despite

some

volatility,

closing

the

12-month

period

up

39.8%

to

$1,976

per

ounce.

Investors

continued

to

seek

perceived

safe

haven

assets

amid

uncertainty

about

global

economic

growth,

geopolitical

conflicts

and

the

impact

of

the

COVID-19

pandemic

on

financial

markets.

3

Fed

comments

indicating

the

continuation

of

its

accommodative

monetary

policy

and

lower

bond

yields

around

the

world

also

continued

to

create

new

demand

for

gold

and

gold-mining

equities,

and

by

period-end,

the

yield

on

the

10-year

U.S.

Treasury

note

fell

to

an

extreme

low

of

0.55%.

Among

the

other

major

precious

metals,

silver

soared

49.95%,

making

it

the

best-performing

metal

for

the

12-month

period.

Platinum,

used

in

catalytic

converters

to

control

pollution

from

diesel-powered

engines,

rose

4.67%,

while

palladium,

the

metal

of

choice

for

catalytic

converters

in

gasoline-powered

engines,

rose

37.56%.

3

Palladium

declined

earlier

in

the

period

given

decreased

demand

due

to

shutdowns

and

delays

at

car

plants

in

China,

the

world’s

largest

consumer

of

palladium,

as

well

as

a

decision

by

the

Trump

administration

to

scale

back

Franklin

Gold

and

Precious

Metals

Fund

5

franklintempleton.com

Annual

Report

fuel

efficiency

and

emissions

standards.

Nevertheless,

demand

from

the

automotive

sector

has

been

booming

as

the

result

of

tightening

emissions

legislation

in

all

major

regions

outside

the

U.S.

(including

India,

China

and

Europe).

Many

palladium

experts

agree

there

is

little

chance

that

deficit

conditions

will

ease,

with

South

Africa

indicating

a

sharp

drop

in

platinum-group

metal

production

during

the

period.

Precious

metals,

in

general,

were

aided

in

varying

degrees

by

reduced

mine

production

in

the

first

half

of

2020

as

miners

around

the

globe

dealt

with

the

unique

challenges

posed

by

the

COVID-19

pandemic

and

resulting

government

lockdowns.

Investment

Strategy

Gold

and

precious

metals

operation

companies

include

companies

that

mine,

process,

or

deal

in

gold

or

other

precious

metals,

such

as

silver,

platinum

and

palladium,

including

mining

finance

and

exploration

companies

as

well

as

operating

companies

with

long-

or

medium-life

mines.

The

Fund

may

buy

securities

of

gold

and

precious

metals

operation

companies

located

anywhere

in

the

world

and

invests

predominantly

in

non-U.S.

companies.

The

Fund

may

invest

in

companies

without

regard

to

market

capitalization,

and

may

heavily

invest

in

small-

and

mid-capitalization

companies.

We

look

for

companies

with

low

cost

reserves

and

experienced

management

teams

with

established

track

records,

particularly

focusing

on

companies

with

long

life

production

profiles,

expandable

resource

bases,

and

active

exploration

programs

that

can

potentially

drive

future

reserve

and

production

growth.

The

investment

manager’s

process

generally

includes

an

assessment

of

the

potential

impacts

of

any

material

environmental,

social

and

governance

(ESG)

factors

on

the

long-term

risk

and

return

profile

of

a

company.

Manager’s

Discussion

Key

contributors

to

the

Fund’s

absolute

performance

during

the

12-month

period

under

review

included

the

Fund’s

holdings

in

B2Gold,

Barrick

Gold

and

AngloGold

Ashanti.

B2Gold,

one

of

our

largest

portfolio

positions,

is

a

low-

cost

senior

gold

producer

with

mines

in

Mali,

Namibia

and

the

Philippines,

plus

a

prospective

development

asset

in

Colombia.

After

reporting

record

gold

production

in

2019

that

exceeded

company

guidance,

B2Gold’s

global

operations,

largely

spared

from

major

COVID-19

interruptions,

delivered

record

gold

production

in

2020’s

first

half

(over

490,000

ounces)

as

well,

resulting

in

record

revenue

of

US$822

million—a

55%

increase

over

the

first

half

of

2019,

stemming

from

production

growth

and

higher

gold

prices.

B2Gold

remained

on

track

to

meet

its

annual

2020

production

guidance

of

1

million

to

1.055

million

ounces

for

the

year.

B2Gold

ended

the

second

quarter

in

a

net

cash

position

and,

based

on

a

gold

price

of

US$1,700

per

ounce,

the

company

expects

to

generate

more

than

US$850

million

in

cash

flow

for

the

rest

of

2020.

B2Gold’s

all-in

sustaining

cost

forecast

through

2024

is

US$825

per

ounce—less

than

half

of

gold’s

spot

price

at

period-end.

Barrick

Gold

was

a

strong

contributor

during

the

period

as

the

company

continued

to

realize

synergies

from

the

2019

merger

with

Randgold

Resources

and

from

the

creation

of

Nevada

Gold

Mines,

a

joint

venture

with

Newmont

which

combined

their

assets

in

Nevada

with

Barrick

as

operator.

Barrick

acquired

the

minority

stake

in

Acacia

it

did

not

already

own,

following

a

new

agreement

with

the

Tanzanian

government

to

end

all

disputes

and

jointly

operate

its

mines

in

the

country

through

a

newly

formed

partnership

model

with

the

government.

The

company

also

improved

its

cashflow,

increased

its

dividend,

reduced

its

net

debt

by

almost

half

and

sold

non-core

assets

such

as

its

Massawa

gold

project

in

Senegal.

Amid

the

COVID-19

pandemic,

the

company

maintained

its

production

guidance

and

benefited

along

with

other

gold

mining

companies

from

increased

gold

prices.

AngloGold

Ashanti

was

a

major

contributor

as

it

increased

free

cash

flow,

raised

its

dividend

and

improved

leverage

to

below

its

target

level.

Higher

gold

prices

and

improved

efficiencies

helped

deliver

exceptional

performances

from

a

number

of

key

mines.

These

included

its

Geita

(Tanzania),

Kibali

(Congo),

Tropicana

(Australia)

and

Iduapriem

(Ghana)

mines,

with

production

and

efficiency

gains

partly

offset

by

operating

challenges

at

its

Siguiri

(Guinea)

and

Sunrise

Dam

(Australia)

mines.

The

successful

restart

of

phase

one

operations

at

its

Obuassi

mine

in

Ghana

also

brought

hope

for

further

production

growth

from

one

of

its

key

assets.

Portfolio

Composition

7/31/20

%

of

Total

Net

Assets

Gold

80.7%

Diversified

Metals

&

Mining

8.1%

Precious

Metals

&

Minerals

7.5%

Silver

2.4%

Other

0.3%

Short-Term

Investments

&

Other

Net

Assets

1.0%

Franklin

Gold

and

Precious

Metals

Fund

6

franklintempleton.com

Annual

Report

Detractors

from

the

Fund’s

absolute

performance

during

the

period

under

review

included

the

Fund’s

holdings

in

Australia-based

companies

OceanaGold,

Newcrest

Mining

and

St.

Barbara.

OceanaGold

reported

a

third-quarter

fiscal

year

(FY)

2019

net

loss,

partially

due

to

halted

operations

at

its

Didipio

gold

and

copper

mine

in

the

Philippines

given

social

unrest

and

legal

challenges

after

the

expiration

of

its

mining

permit

in

June

2019.

The

company

is

working

with

the

national

government

to

address

local

concerns

and

extend

its

permit;

however,

operations

remained

in

care

and

maintenance

as

of

July

2020.

The

company

focused

on

increasing

production

at

its

other

gold

and

copper

mines

in

New

Zealand

and

the

U.S.

and

managed

to

report

modest

fourth-quarter

and

total

FY

2019

earnings.

The

COVID-19

pandemic

affected

the

company’s

mines

in

New

Zealand,

contributing

to

a

first-

quarter

FY

2020

net

loss,

but

operations

resumed

in

late

April

2020.

The

company

also

reported

a

second-quarter

FY

2020

net

loss

amid

heavy

rain

at

their

Haile

mine

in

South

Carolina,

which

delayed

access

to

higher

grade

ore,

and

lower

than

expected

production

from

New

Zealand

stemming

from

COVID-19

restrictions,

which

resulted

in

a

several

week

long

closure

of

mining

operations.

Michael

Holmes

took

over

as

the

chief

executive

officer

in

April,

having

served

as

the

chief

operations

officer

for

the

previous

seven

years,

and

will

be

focused

on

getting

the

mines

to

deliver

on

their

potential

while

advancing

the

company’s

growth

projects

in

New

Zealand.

Newcrest

Mining

is

a

gold

mining

exploration

and

production

company

that

operates

in

Australia,

Canada

and

the

Asia-

Pacific

region.

Newcrest

began

the

period

with

investor

optimism

about

significant

profits,

debt

reduction

and

a

recent

joint

venture

with

Imperial

Metals,

a

Canada-based

metals

and

mining

company,

to

operate

the

Red

Chris

gold-

copper

mine

in

British

Columbia.

The

company

proceeded

to

report

solid

year-over-year

FY

2020

financial

results,

including

modestly

higher

revenue

and

substantially

higher

earnings,

despite

the

COVID-19

pandemic.

However,

the

impending

decline

of

gold

grades

at

Newcrest’s

top-

performing

Cadia

mine

in

New

South

Wales,

Australia,

concerns

around

the

limited

mine

life

of

its

Telfer

mine

in

Western

Australia,

and

political

issues

delaying

the

development

of

the

Wafi-Golpu

mine

in

Papua

New

Guinea

depressed

Newcrest’s

stock

price.

Newcrest

also

has

exposure

to

more

copper

production

than

many

of

its

peers,

which

held

back

relative

performance

in

2020’s

first

quarter.

Despite

investor

enthusiasm

after

Australia-based

gold-

mining

company

St.

Barbara

acquired

Canada-based

Atlantic

Gold

in

July

2019,

St.

Barbara’s

shares

underperformed

after

the

company

announced

a

sharp

decline

in

FY

2019

earnings

compared

with

the

prior

year.

Reduced

production

guidance

for

a

second

year

at

St.

Barbara’s

Gwalia

gold

mine

in

Western

Australia

also

hindered

the

stock,

and

FY

2020

mid-year

earnings

significantly

missed

the

company’s

initial

FY

2020

guidance.

Near

period-end,

the

company

stated

its

intension

to

continue

moving

forward

with

development

projects

related

to

its

Atlantic

Gold

acquisition,

finishing

the

extension

project

for

its

Gwalia

mine

in

Australia

and

completing

the

feasibility

study

for

the

sulfide

project

at

its

Simberi

mine

in

Papua

New

Guinea.

Top

10

Holdings

7/31/20

Company

Sub-Industry

%

of

Total

Net

Assets

a

a

Barrick

Gold

Corp.

6.3%

Gold

B2Gold

Corp.

4.7%

Gold

AngloGold

Ashanti

Ltd.

4.6%

Gold

Newmont

Corp.

4.5%

Gold

Newcrest

Mining

Ltd.

4.2%

Gold

Alamos

Gold,

Inc.

3.8%

Gold

Perseus

Mining

Ltd.

3.5%

Gold

Centerra

Gold,

Inc.

3.1%

Gold

Teranga

Gold

Corp.

3.1%

Gold

Impala

Platinum

Holdings

Ltd.

2.9%

Precious

Metals

&

Minerals

Franklin

Gold

and

Precious

Metals

Fund

7

franklintempleton.com

Annual

Report

Thank

you

for

your

continued

participation

in

Franklin

Gold

and

Precious

Metals

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Stephen

M.

Land,

CFA

Frederick

G.

Fromm,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

July

31,

2020,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

July

31,

2020

Franklin

Gold

and

Precious

Metals

Fund

8

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

7/31/20

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

1

Average

Annual

Total

Return

2

–

A

3

1-Year

+68.05%

+58.81%

5-Year

+163.02%

+19.97%

10-Year

-12.07%

-1.83%

Advisor

1-Year

+68.47%

+68.47%

5-Year

+166.40%

+21.65%

10-Year

-9.85%

-1.03%

See

page

10

for

Performance

Summary

footnotes.

Franklin

Gold

and

Precious

Metals

Fund

Performance

Summary

9

franklintempleton.com

Annual

Report

See

page

10

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(8/1/10–7/31/20)

Advisor

Class

(8/1/10–7/31/20)

Franklin

Gold

and

Precious

Metals

Fund

Performance

Summary

10

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

Fund

concentrates

in

the

precious

metals

sector,

which

involves

fluctuations

in

the

prices

of

gold

and

other

precious

metals

and

increased

susceptibility

to

adverse

economic

and

regulatory

developments

affecting

the

sector.

In

times

of

stable

econom-

ic

growth,

traditional

equity

and

debt

investments

could

offer

greater

appreciation

potential

and

the

prices

of

gold

and

other

precious

metals

may

be

adversely

affected.

In

addition,

the

Fund

is

subject

to

the

risks

of

currency

fluctuation

and

political

uncertainty

associated

with

foreign

(non-U.S.)

investing.

Investments

in

emerging

and

frontier

markets

involve

heightened

risks

related

to

the

same

factors,

in

addition

to

those

associated

with

their

relatively

small

size

and

lesser

liquidity.

The

Fund

may

also

heavily

invest

in

smaller

companies,

which

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger,

more

established

companies.

Investing

in

a

non-diversified

fund

involves

the

risk

of

greater

price

fluctuation

than

a

more

diversified

portfolio.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

2.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

3.

Prior

to

9/10/18

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

4.

Source:

Morningstar.

The

FTSE

Gold

Mines

Index

is

a

free

float-weighted

index

that

comprises

companies

whose

principal

activity

is

gold

mining.

The

S&P

500

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Total

Annual

Operating

Expenses

5

Share

Class

A

0.98%

Advisor

0.73%

Your

Fund’s

Expenses

Franklin

Gold

and

Precious

Metals

Fund

11

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

2/1/20

Ending

Account

Value

7/31/20

Expenses

Paid

During

Period

2/1/20–7/31/20

1,2

Ending

Account

Value

7/31/20

Expenses

Paid

During

Period

2/1/20–7/31/20

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,472.90

$5.63

$1,020.31

$4.60

0.92%

C

$1,000

$1,466.80

$10.21

$1,016.59

$8.34

1.66%

R6

$1,000

$1,474.80

$2.59

$1,022.77

$2.12

0.42%

Advisor

$1,000

$1,474.30

$4.09

$1,021.56

$3.34

0.66%

Franklin

Gold

and

Precious

Metals

Fund

Financial

Highlights

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Year

Ended

July

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$16.68

$13.56

$16.19

$24.06

$11.63

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.04)

(0.02)

(0.06)

(0.04)

(0.09)

Net

realized

and

unrealized

gains

(losses)

...........

11.40

3.14

(2.51)

(6.45)

12.52

Total

from

investment

operations

....................

11.36

3.12

(2.57)

(6.49)

12.43

Less

distributions

from:

Net

investment

income

..........................

—

—

(0.06)

(1.38)

—

Net

asset

value,

end

of

year

.......................

$28.04

$16.68

$13.56

$16.19

$24.06

Total

return

c

...................................

68.05%

23.01%

(15.92)%

(26.85)%

106.88%

Ratios

to

average

net

assets

Expenses

d

....................................

0.93%

e

0.98%

e

1.02%

e

0.98%

e

1.11%

Net

investment

income

(loss)

......................

(0.20)%

(0.15)%

(0.37)%

(0.24)%

(0.57)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$938,555

$645,108

$587,294

$776,677

$988,701

Portfolio

turnover

rate

............................

17.00%

12.82%

8.36%

13.99%

16.76%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Gold

and

Precious

Metals

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

13

a

Year

Ended

July

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$15.24

$12.49

$14.96

$22.39

$10.90

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.16)

(0.11)

(0.15)

(0.17)

(0.18)

Net

realized

and

unrealized

gains

(losses)

...........

10.34

2.86

(2.32)

(5.99)

11.67

Total

from

investment

operations

....................

10.18

2.75

(2.47)

(6.16)

11.49

Less

distributions

from:

Net

investment

income

..........................

—

—

—

(1.27)

—

Net

asset

value,

end

of

year

.......................

$25.42

$15.24

$12.49

$14.96

$22.39

Total

return

c

...................................

66.80%

22.02%

(16.51)%

(27.41)%

105.41%

Ratios

to

average

net

assets

Expenses

d

....................................

1.68%

e

1.73%

e

1.77%

e

1.73%

e

1.86%

Net

investment

income

(loss)

......................

(0.94)%

(0.90)%

(1.12)%

(0.99)%

(1.32)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$106,271

$75,129

$94,997

$137,487

$200,179

Portfolio

turnover

rate

............................

17.00%

12.82%

8.36%

13.99%

16.76%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Gold

and

Precious

Metals

Fund

Financial

Highlights

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

Year

Ended

July

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$17.90

$14.50

$17.31

$25.58

$12.29

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

....................

0.03

0.04

0.01

0.04

(0.01)

Net

realized

and

unrealized

gains

(losses)

...........

12.27

3.36

(2.68)

(6.87)

13.30

Total

from

investment

operations

....................

12.30

3.40

(2.67)

(6.83)

13.29

Less

distributions

from:

Net

investment

income

..........................

—

—

(0.14)

(1.44)

—

Net

asset

value,

end

of

year

.......................

$30.20

$17.90

$14.50

$17.31

$25.58

Total

return

....................................

68.66%

23.45%

(15.50)%

(26.53)%

108.14%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.72%

0.83%

0.79%

0.57%

0.63%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.56%

c

0.58%

c

0.55%

c

0.52%

c

0.59%

Net

investment

income

(loss)

......................

0.17%

0.25%

0.10%

0.21%

(0.05)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$20,574

$10,808

$8,153

$4,635

$3,764

Portfolio

turnover

rate

............................

17.00%

12.82%

8.36%

13.99%

16.76%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Gold

and

Precious

Metals

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

15

a

Year

Ended

July

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$17.73

$14.38

$17.17

$25.38

$12.23

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

....................

0.01

0.01

(0.02)

—

c

(0.05)

Net

realized

and

unrealized

gains

(losses)

...........

12.14

3.34

(2.67)

(6.81)

13.20

Total

from

investment

operations

....................

12.15

3.35

(2.69)

(6.81)

13.15

Less

distributions

from:

Net

investment

income

..........................

—

—

(0.10)

(1.40)

—

Net

asset

value,

end

of

year

.......................

$29.88

$17.73

$14.38

$17.17

$25.38

Total

return

....................................

68.47%

23.30%

(15.70)%

(26.69)%

107.52%

Ratios

to

average

net

assets

Expenses

d

....................................

0.68%

e

0.73%

e

0.77%

e

0.73%

e

0.86%

Net

investment

income

(loss)

......................

0.05%

0.10%

(0.12)%

0.01%

(0.32)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$280,317

$143,589

$130,812

$164,253

$207,574

Portfolio

turnover

rate

............................

17.00

%

12.82%

8.36%

13.99%

16.76%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Amount

rounds

to

less

than

$0.01

per

share.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Gold

and

Precious

Metals

Fund

Statement

of

Investments,

July

31,

2020

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

a

a

Country

Shares

a

Value

a

Common

Stocks

98.1%

Copper

0.3%

a

Imperial

Metals

Corp.

..................................

Canada

1,950,300

$

4,382,860

a

Diversified

Metals

&

Mining

7.8%

a,b

Adventus

Mining

Corp.

.................................

Canada

5,000,000

4,666,269

a,c

Bluestone

Resources,

Inc.,

144A

..........................

Canada

6,500,000

10,336,718

a

Clean

Air

Metals,

Inc.

..................................

Canada

3,800,000

907,869

a,c,d

Euro

Sun

Mining,

Inc.,

144A

.............................

Canada

10,000,000

4,106,316

a,d

Geopacific

Resources

Ltd.

..............................

Australia

13,001,094

5,744,253

a,c

INV

Metals,

Inc.,

144A

..................................

Canada

6,565,000

4,019,187

a,c

Ivanhoe

Mines

Ltd.,

144A

...............................

Canada

5,735,000

20,209,945

a

Ivanhoe

Mines

Ltd.,

A

..................................

Canada

841,800

2,966,475

a,b,c

Mawson

Resources

Ltd.,

144A

...........................

Canada

7,700,000

2,788,189

a,b

Orla

Mining

Ltd.

......................................

Canada

4,090,713

17,408,589

a,c

Orla

Mining

Ltd.,

144A

..................................

Canada

2,000,000

8,511,274

a,e,f

Osisko

Metals,

Inc.

....................................

Canada

4,250,000

13,056,565

a

Pantoro

Ltd.

.........................................

Australia

15,400,000

2,955,902

a,c,e,f

Vizsla

Resources

Corp.,

144A

............................

Canada

3,350,000

7,064,933

104,742,484

Gold

80.5%

Agnico

Eagle

Mines

Ltd.,

(CAD

Traded)

.....................

Canada

16,797

1,333,953

Agnico

Eagle

Mines

Ltd.,

(USD

Traded)

.....................

Canada

128,000

10,174,720

a

Alacer

Gold

Corp.

.....................................

United

States

3,492,500

26,987,737

a,c

Alacer

Gold

Corp.,

144A

................................

United

States

1,500,000

11,591,011

Alamos

Gold,

Inc.,

(CAD

Traded),

A

........................

Canada

2,828,316

29,921,784

Alamos

Gold,

Inc.,

(USD

Traded),

A

........................

Canada

2,014,500

21,353,700

AngloGold

Ashanti

Ltd.,

ADR

.............................

Tanzania

1,924,823

61,960,052

a,c

Argonaut

Gold,

Inc.,

144A

...............................

United

States

2,350,000

4,912,647

a,c,e,f

Artemis

Gold,

Inc.,

144A

................................

Canada

1,725,000

5,930,755

a,d

Ascot

Resources

Ltd.

..................................

Canada

831,250

688,881

a,c,d

Ascot

Resources

Ltd.,

144A

.............................

Canada

15,388,750

12,753,108

B2Gold

Corp.

........................................

Canada

9,033,694

62,589,727

Barrick

Gold

Corp.

....................................

Canada

2,924,383

84,543,913

a,d

Battle

North

Gold

Corp.

.................................

Canada

8,008,900

11,899,142

a

Belo

Sun

Mining

Corp.

.................................

Canada

3,500,000

1,933,702

a,c

Belo

Sun

Mining

Corp.,

144A

.............................

Canada

3,800,000

2,099,447

a

Breaker

Resources

NL

.................................

Australia

11,272,631

2,295,635

Centamin

plc

.........................................

Egypt

12,265,200

32,835,620

Centerra

Gold,

Inc.

....................................

Kyrgyzstan

395,700

4,963,237

a,c

Centerra

Gold,

Inc.,

144A

...............................

Kyrgyzstan

2,893,400

36,291,713

a,b,d

Chalice

Gold

Mines

Ltd.

................................

Australia

28,229,652

21,059,387

a

Corvus

Gold,

Inc.

.....................................

Canada

2,000,000

6,032,552

a,b,d

Dacian

Gold

Ltd.

......................................

Australia

32,555,556

7,673,415

c

Dundee

Precious

Metals,

Inc.,

144A

.......................

Canada

1,540,000

11,612,662

a

Eldorado

Gold

Corp.

...................................

Turkey

1,648,724

20,716,757

a

Emerald

Resources

NL

.................................

Australia

17,070,000

7,593,972

a

Endeavour

Mining

Corp.

................................

Ivory

Coast

1,212,222

32,663,201

a

Galiano

Gold,

Inc.

.....................................

Canada

9,572,375

17,866,909

a,e,f

Gascoyne

Resources

Ltd.

...............................

Australia

23,023,100

329,023

Gold

Fields

Ltd.

.......................................

South

Africa

749,800

9,915,787

a

Gold

Standard

Ventures

Corp.

............................

Canada

4,070,000

3,281,768

a

Golden

Star

Resources

Ltd.

.............................

United

States

3,929,533

17,682,899

a

Great

Panther

Mining

Ltd.

...............................

Canada

5,171,889

4,239,915

a,c

Guyana

Goldfields,

Inc.,

144A

............................

Canada

6,220,000

8,358,967

a,d

HighGold

Mining,

Inc.

..................................

Canada

3,840,000

5,877,259

a,c,d,e,f

HighGold

Mining,

Inc.,

144A

.............................

Canada

463,000

646,256

a

Integra

Resources

Corp.

................................

Canada

2,260,000

9,516,500

Kirkland

Lake

Gold

Ltd.

.................................

Canada

476,123

26,002,985

a,b

Liberty

Gold

Corp.

.....................................

Canada

10,688,100

17,555,488

Franklin

Gold

and

Precious

Metals

Fund

Statement

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

17

a

a

Country

Shares

a

Value

a

Common

Stocks

(continued)

Gold

(continued)

a,b,d

Lion

One

Metals

Ltd.

...................................

Canada

5,089,000

$

9,080,715

a,c,d

Lion

One

Metals

Ltd.,

144A

..............................

Canada

2,935,000

5,237,158

a,e,f

Lydian

International

Ltd.

................................

Jersey

6,375,000

—

a,c,e,f

Lydian

International

Ltd.,

144A

...........................

Jersey

25,250,000

—

a

Marathon

Gold

Corp.

...................................

Canada

2,306,000

3,959,833

a

Midas

Gold

Corp.

.....................................

Canada

4,020,900

4,683,145

a,c

Midas

Gold

Corp.,

144A

................................

Canada

4,030,000

4,693,744

Newcrest

Mining

Ltd.

...................................

Australia

2,191,914

55,848,587

Newmont

Corp.

.......................................

United

States

872,614

60,384,889

Northern

Star

Resources

Ltd.

............................

Australia

1,003,106

11,386,578

a,e,f

O3

Mining,

Inc.

.......................................

Canada

1,700,000

3,068,312

a

OceanaGold

Corp.

....................................

Australia

5,762,689

15,101,567

a

OceanaGold

Corp.

....................................

Australia

3,325,799

8,715,510

Osisko

Gold

Royalties

Ltd.

..............................

Canada

275,000

3,223,458

a

Perseus

Mining

Ltd.

...................................

Australia

41,558,141

47,315,385

a,c

Premier

Gold

Mines

Ltd.,

144A

...........................

Canada

2,868,750

5,847,161

a

Pretium

Resources,

Inc.

................................

Canada

2,184,000

20,708,377

a,d

Red

5

Ltd.

...........................................

Australia

162,268,146

29,322,847

a,d

RTG

Mining,

Inc.

......................................

Australia

1,769,918

171,785

a,c,d

RTG

Mining,

Inc.,

144A

.................................

Australia

2,397,790

232,726

a,d

RTG

Mining,

Inc.,

CDI

..................................

Australia

50,687,582

4,527,352

c,g

Shandong

Gold

Mining

Co.

Ltd.,

H,

144A,

Reg

S

..............

China

2,100,000

6,660,054

a,b

Skeena

Resources

Ltd.

.................................

Canada

4,150,000

8,582,574

a,e,f

Skeena

Resources

Ltd.

.................................

Canada

3,000,000

6,137,558

a

SolGold

plc,

(CAD

Traded)

..............................

Australia

14,650,000

5,031,357

a

SolGold

plc,

(GBP

Traded)

..............................

Australia

7,000,000

2,286,343

a

St.

Augustine

Gold

and

Copper

Ltd.,

(CAD

Traded)

............

United

States

6,136,836

366,542

a,c

St.

Augustine

Gold

and

Copper

Ltd.,

(CAD

Traded),

144A

.......

United

States

16,383,333

978,548

a,c

St.

Augustine

Gold

and

Copper

Ltd.,

(USD

Traded),

144A

.......

United

States

10,000,000

597,282

St.

Barbara

Ltd.

.......................................

Australia

9,508,021

23,362,792

a

Teranga

Gold

Corp.

....................................

Canada

3,527,751

41,166,752

a

Torex

Gold

Resources,

Inc.

..............................

Canada

86,100

1,509,996

a,c

Torex

Gold

Resources,

Inc.,

144A

.........................

Canada

1,450,000

25,429,670

a

West

African

Resources

Ltd.

.............................

Australia

10,250,000

7,720,608

a

Wiluna

Mining

Corp.

Ltd.

................................

Australia

4,524,000

4,331,716

1,083,357,107

Precious

Metals

&

Minerals

7.2%

Anglo

American

Platinum

Ltd.

............................

South

Africa

212,656

16,324,729

a

Eastern

Platinum

Ltd.

..................................

Canada

2,592,102

735,403

Fresnillo

plc

.........................................

Mexico

275,000

4,466,448

a,c

GoGold

Resources,

Inc.,

144A

...........................

Canada

4,858,572

5,695,056

Impala

Platinum

Holdings

Ltd.

............................

South

Africa

2,830,000

25,264,375

Impala

Platinum

Holdings

Ltd.,

ADR

.......................

South

Africa

1,506,100

13,539,839

a

Northam

Platinum

Ltd.

.................................

South

Africa

1,209,019

9,543,858

a,b,d

Platinum

Group

Metals

Ltd.,

(CAD

Traded)

..................

South

Africa

2,242,787

4,872,712

a,d

Platinum

Group

Metals

Ltd.,

(CAD

Traded)

..................

South

Africa

10,000

21,726

a,c,d

Platinum

Group

Metals

Ltd.,

(CAD

Traded),

144A

.............

South

Africa

97,760

212,395

a,b,d

Platinum

Group

Metals

Ltd.,

(USD

Traded)

..................

South

Africa

4,766,683

10,296,035

a,c,d

Platinum

Group

Metals

Ltd.,

(USD

Traded),

144A

.............

South

Africa

36,628

79,579

a

Royal

Bafokeng

Platinum

Ltd.

............................

South

Africa

2,193,527

6,436,924

97,489,079

Silver

2.3%

Hochschild

Mining

plc

..................................

Peru

3,268,520

11,583,072

a

MAG

Silver

Corp.

.....................................

Canada

497,000

8,397,126

a,c

MAG

Silver

Corp.,

144A

................................

Canada

240,000

4,054,950

Franklin

Gold

and

Precious

Metals

Fund

Statement

of

Investments

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

a

Country

Shares

a

Value

a

Common

Stocks

(continued)

Silver

(continued)

Pan

American

Silver

Corp.

..............................

Canada

180,021

$

6,726,931

30,762,079

Total

Common

Stocks

(Cost

$786,229,163)

.....................................

1,320,733,609

Rights

a

a

Rights

0.1%

Silver

0.1%

a

Pan

American

Silver

Corp.,

CVR

,

2/20/49

...................

Canada

1,850,600

1,545,251

Total

Rights

(Cost

$856,772)

..................................................

1,545,251

Warrants

a

a

a

Warrants

0.6%

Diversified

Metals

&

Mining

0.3%

a,e,f

Bluestone

Resources,

Inc.

,

3/19/21

........................

Canada

550,000

227,366

a,e,f

Clean

Air

Metals,

Inc.

,

2/11/22

............................

Canada

1,900,000

124,750

a,d,e,f

Euro

Sun

Mining,

Inc.

,

6/05/23

...........................

Canada

5,000,000

888,663

a,e,f

Mawson

Resources

Ltd.

,

5/20/22

.........................

Canada

3,850,000

451,798

a,e,f

Orla

Mining

Ltd.

,

2/15/21

................................

Canada

460,000

1,147,081

a,e,f

Osisko

Metals,

Inc.

,

12/23/21

............................

Canada

2,125,000

422,912

3,262,570

Gold

0.2%

a,e,f

Dundee

Precious

Metals,

Inc.

,

5/13/21

.....................

Canada

770,000

1,376,082

a,d,e,f

Lion

One

Metals

L

td.

,

6/06/21

............................

Canada

1,089,000

922,513

a,e,f

Marathon

Gold

Corp.

,

5/26/21

............................

Canada

1,153,000

553,408

a,e,f

O3

Mining,

Inc.

,

6/18/22

................................

Canada

850,000

333,248

3,185,251

Precious

Metals

&

Minerals

0.1%

a

GoGold

Resources,

Inc.

,

2/25/22

..........................

Canada

2,429,286

1,305,873

Total

Warrants

(Cost

$258,310)

................................................

7,753,694

Principal

Amount

*

Convertible

Bonds

0.2%

Precious

Metals

&

Minerals

0.2%

d

Platinum

Group

Metals

Ltd.,

Sub.

Note,

6.875%,

7/01/22

........

South

Africa

3,000,000

2,257,500

Total

Convertible

Bonds

(Cost

$3,000,000)

.....................................

2,257,500

Total

Long

Term

Investments

(Cost

$790,344,245)

...............................

1,332,290,054

a

Short

Term

Investments

1.2%

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

0.8%

h,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

........

United

States

11,151,454

11,151,454

Total

Money

Market

Funds

(Cost

$11,151,454)

..................................

11,151,454

Franklin

Gold

and

Precious

Metals

Fund

Statement

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

19

See

Abbreviations

on

page

35

.

Short

Term

Investments

(continued)

a

a

Country

Shares

a

Value

a

a

a

a

a

a

j

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.3%

Money

Market

Funds

0.3%

h,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

........

United

States

4,254,000

$

4,254,000

Principal

Amount

j

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.1%

Repurchase

Agreements

0.1%

k

Joint

Repurchase

Agreement,

BofA

Securities,

Inc.,

0.08%,

8/03/20

(Maturity

Value

$1,278,486)

Collateralized

by

U.S.

Treasury

Notes,

1.625%

-

1.875%,

3/31/22

-

8/15/22

(valued

at

$1,304,047)

..........................

1,278,477

1,278,477

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$5,532,477)

.................................................................

5,532,477

Total

Short

Term

Investments

(Cost

$16,683,931

)

................................

16,683,931

a

Total

Investments

(Cost

$807,028,176)

100.2%

..................................

$1,348,973,985

Other

Assets,

less

Liabilities

(0.2)%

...........................................

(3,258,012)

Net

Assets

100.0%

...........................................................

$1,345,715,973

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Non-income

producing.

b

A

portion

or

all

of

the

security

is

on

loan

at

July

31,

2020.

See

Note

1(d)

c

Security

was

purchased

pursuant

to

Rule

144A

under

the

Securities

Act

of

1933

and

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

At

July

31,

2020,

the

aggregate

value

of

these

securities

was

$210,951,451,

representing

15.7%

of

net

assets.

d

See

Note

10

regarding

holdings

of

5%

voting

securities.

e

Fair

valued

using

significant

unobservable

inputs.

See

Note

12

regarding

fair

value

measurements.

f

See

Note

9

regarding

restricted

securities.

g

Security

was

purchased

pursuant

to

Regulation

S

under

the

Securities

Act

of

1933,

which

exempts

from

registration

securities

offered

and

sold

outside

of

the

United

States.

Such

a

security

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

July

31,

2020,

the

value

of

this

security

was

$6,660,054,

representing

0.5%

of

net

assets.

h

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

i

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

j

See

Note

1(d)

regarding

securities

on

loan.

k

See

Note

1(c)

regarding

joint

repurchase

agreement.

Franklin

Gold

and

Precious

Metals

Fund

Financial

Statements

Statement

of

Assets

and

Liabilities

July

31,

2020

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

Franklin

Gold

and

Precious

Metals

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$593,470,010

Cost

-

Non-controlled

affiliates

(Note

3

f

and

10

)

...................................................

213,558,166

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$5,115,729)

..................................

$1,194,996,808

Value

-

Non-controlled

affiliates

(Note

3

f

and

10

)

..................................................

153,977,177

Receivables:

Capital

shares

sold

........................................................................

10,140,929

Dividends

and

interest

.....................................................................

114,164

Due

from

custodian

........................................................................

1,731,336

Other

assets

..............................................................................

682

Total

assets

..........................................................................

1,360,961,096

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

3,664,502

Capital

shares

redeemed

...................................................................

4,935,813

Management

fees

.........................................................................

513,235

Distribution

fees

..........................................................................

266,516

Transfer

agent

fees

........................................................................

236,470

Payable

upon

return

of

securities

loaned

.........................................................

5,532,477

Accrued

expenses

and

other

liabilities

...........................................................

96,110

Total

liabilities

.........................................................................

15,245,123

Net

assets,

at

value

.................................................................

$1,345,715,973

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$1,561,996,437

Total

distributable

earnings

(losses)

.............................................................

(216,280,464)

Net

assets,

at

value

.................................................................

$1,345,715,973

Franklin

Gold

and

Precious

Metals

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$938,554,702

Shares

outstanding

........................................................................

33,477,766

Net

asset

value

per

share

a

..................................................................

$28.04

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$29.67

Class

C:

Net

assets,

at

value

.......................................................................

$106,270,778

Shares

outstanding

........................................................................

4,179,839

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$25.42

Class

R6:

Net

assets,

at

value

.......................................................................

$20,573,882

Shares

outstanding

........................................................................

681,257

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$30.20

Advisor

Class:

Net

assets,

at

value

.......................................................................

$280,316,611

Shares

outstanding

........................................................................

9,382,445

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$29.88

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Gold

and

Precious

Metals

Fund

Financial

Statements

Statement

of

Operations

for

the

year

ended

July

31,

2020

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

21

Franklin

Gold

and

Precious

Metals

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$575,589)

Unaffiliated

issuers

........................................................................

$6,403,504

Non-controlled

affiliates

(Note

3

f

and

10

)

........................................................

93,630

Interest:

Unaffiliated

issuers

........................................................................

102,243

Non-controlled

affiliates

(Note

3

f

and

10

)

........................................................

230,433

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

226,157

Non-controlled

affiliates

(Note

3

f

)

.............................................................

3,809

Total

investment

income

...................................................................

7,059,776

Expenses:

Management

fees

(Note

3

a

)

...................................................................

4,689,706

Distribution

fees:

(Note

3c

)

Class

A

................................................................................

1,758,527

Class

C

................................................................................

799,505

Transfer

agent

fees:

(Note

3e

)

Class

A

..................................................................................

1,023,220

Class

C

..................................................................................

116,131

Class

R6

.................................................................................

24,984

Advisor

Class

.............................................................................

250,354

Custodian

fees

(Note

4

)

......................................................................

78,615

Reports

to

shareholders

......................................................................

95,088

Registration

and

filing

fees

....................................................................

100,057

Professional

fees

...........................................................................

109,862

Trustees'

fees

and

expenses

..................................................................

53,918

Other

....................................................................................

31,694

Total

expenses

.........................................................................

9,131,661

Expense

reductions

(Note

4

)

...............................................................

(291)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

..............................................

(56,140)

Net

expenses

.........................................................................

9,075,230

Net

investment

income

(loss)

............................................................

(2,015,454)

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

16,047,534

Non-controlled

affiliates

(Note

3

f

and

10

)

......................................................

(3,182,698)

Foreign

currency

transactions

................................................................

(611,685)

Net

realized

gain

(loss)

..................................................................

12,253,151

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

500,090,872

Non-controlled

affiliates

(Note

3

f

and

10

)

......................................................

64,976,308

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

3,456

Net

change

in

unrealized

appreciation

(depreciation)

............................................

565,070,636

Net

realized

and

unrealized

gain

(loss)

............................................................

577,323,787

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$575,308,333

Franklin

Gold

and

Precious

Metals

Fund

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

Franklin

Gold

and

Precious

Metals

Fund

Year

Ended

July

31,

2020

Year

Ended

July

31,

2019

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

............................................

$(2,015,454)

$(1,326,326)

Net

realized

gain

(loss)

.................................................

12,253,151

(45,771,177)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

565,070,636

219,810,077

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

575,308,333

172,712,574

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

(124,090,549)

(75,849,158)

Class

C

.............................................................

(13,468,257)

(31,756,462)

Class

R6

............................................................

1,382,646

971,552

Advisor

Class

........................................................

31,949,531

(12,700,287)

Total

capital

share

transactions

............................................

(104,226,629)

(119,334,355)

Net

increase

(decrease)

in

net

assets

...................................

471,081,704

53,378,219

Net

assets:

Beginning

of

year

.......................................................

874,634,269

821,256,050

End

of

year

...........................................................

$1,345,715,973

$874,634,269

Franklin

Gold

and

Precious

Metals

Fund

23

franklintempleton.com

Annual

Report

Notes

to

Financial

Statements

1.

Organization

and

Significant

Accounting

Policies

Franklin

Gold

and

Precious

Metals

Fund (Fund)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

The

Fund

offers

four

classes

of

shares:

Class

A,

Class

C,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

after

they

have

been

held

for

10

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees. 

The

following

summarizes

the

Fund’s

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Fund's

Board

of

Trustees

(the

Board),

the

Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Debt

securities

generally

trade

in

the

OTC

market

rather

than

on

a

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day.

Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

24

franklintempleton.com

Annual

Report

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at 4

p.m.

Eastern

time.

At July

31,

2020,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy.

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Joint

Repurchase

Agreement

The

Fund

enters

into

a

joint

repurchase

agreement

whereby

its

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Fund's

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Fund,

certain

MRAs

may

permit

the

non-

defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Fund

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Fund

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the Fund

at

year

end,

as

indicated

in

the

Statement

of

Investments,

had

been

entered

into

on

July

31,

2020.

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

25

franklintempleton.com

Annual

Report

d.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

cash

collateral

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

The

collateral

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the

Fund,

and/or

a

joint

repurchase

agreement.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to

the

collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

e.

Income

and

Deferred

Taxes

It

is the

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

July

31,

2020,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

f.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

g.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

26

franklintempleton.com

Annual

Report

h.

Guarantees

and

Indemnifications

Under

the

Fund's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Fund

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Fund.

Additionally,

in

the

normal

course

of

business,

the

Fund

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Fund's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Fund

that

have

not

yet

occurred.

Currently,

the

Fund

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

July

31,

2020,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Year

Ended

July

31,

2020

2019

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

38,055,516

$722,901,303

23,599,735

$320,367,522

Shares

redeemed

...............................

(43,260,928)

(846,991,852)

(28,218,476)

(396,216,680)

Net

increase

(decrease)

..........................

(5,205,412)

$(124,090,549)

(4,618,741)

$(75,849,158)

Class

C

Shares:

Shares

sold

...................................

1,573,374

$27,069,763

864,478

$10,574,026

Shares

redeemed

a

..............................

(2,323,343)

(40,538,020)

(3,542,905)

(42,330,488)

Net

increase

(decrease)

..........................

(749,969)

$(13,468,257)

(2,678,427)

$(31,756,462)

Class

R6

Shares:

Shares

sold

...................................

766,821

$15,343,211

431,162

$6,434,093

Shares

redeemed

...............................

(689,324)

(13,960,565)

(389,580)

(5,462,541)

Net

increase

(decrease)

..........................

77,497

$1,382,646

41,582

$971,552

Advisor

Class

Shares:

Shares

sold

...................................

5,387,923

$111,957,923

3,233,625

$45,629,801

Shares

redeemed

...............................

(4,103,708)

(80,008,392)

(4,229,531)

(58,330,088)

Net

increase

(decrease)

..........................

1,284,215

$31,949,531

(995,906)

$(12,700,287)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Templeton

Distributors,

Inc.

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

27

franklintempleton.com

Annual

Report

a.

Management

Fees

The

Fund

pays

an

investment

management

fee

to

Advisers

based

on

the

month-end

net

assets

of

the

Fund

as

follows:

For

the

year

ended

July

31,

2020,

the

gross

effective

investment

management

fee

rate

was

0.481%

of

the

Fund’s

average

daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

A

and

Class

C

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class

A

reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class

C

compensation

distribution

plan,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

shares

for

the

year:

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

In

excess

of

$15

billion

Class

A

....................................................................................

0.25%

Class

C

....................................................................................

1.00%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$107,678

CDSC

retained

..............................................................................

$28,735

3.

Transactions

with

Affiliates

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

28

franklintempleton.com

Annual

Report

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class

reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

year

ended

July

31,

2020,

the

Fund

paid

transfer

agent

fees

of

$1,414,689,

of

which

$593,906

was

retained

by

Investor

Services.

f.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies

for

purposes

other

than

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

year

ended

July

31,

2020,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

g.

Waiver

and

Expense

Reimbursements

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

November

30,

2020

.

4.

Expense

Offset

Arrangement

The

Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund’s

custodian

expenses.

During

the

year

ended

July

31,

2020,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

a

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

a

a

a

a

a

a

a

a

a

Franklin

Gold

And

Precious

Metals

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

$4,722

$308,357,765

$(297,211,033)

$

—

$

—

$

11,151,454

11,151,454

$

93,630

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

$—

$40,159,000

$(35,905,000)

$

—

$

—

$

4,254,000

4,254,000

$

3,809

Total

Affiliated

Securities

....

$4,722

$348,516,765

$(333,116,033)

$—

$—

$15,405,454

$97,439

3.

Transactions

with

Affiliates

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

29

franklintempleton.com

Annual

Report

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

July

31,

2020,

the

capital

loss

carryforwards

were

as

follows:

At

July

31,

2020,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation)

and

undistributed

ordinary

income

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

wash

sales,

passive

foreign

investment

company

shares,

and

corporate

actions.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

July

31,

2020,

aggregated

$164,065,419

and

$276,882,036,

respectively.

At

July

31,

2020,

in

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received

$5,532,477

of

cash

collateral.

The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Statement

of

Assets

and

Liabilities.

The

agreements

can

be

terminated

at

any

time.

7.

Concentration

of

Risk

Investing

in

foreign

securities

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities,

such

as

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

Current

political

and

financial

uncertainty

surrounding

the

European

Union

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

Europe.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

8. Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$3,730,680

Long

term

................................................................................

668,744,010

Total

capital

loss

carryforwards

...............................................................

$672,474,690

Cost

of

investments

..........................................................................

$1,012,396,130

Unrealized

appreciation

........................................................................

$715,522,792

Unrealized

depreciation

........................................................................

(378,944,937)

Net

unrealized

appreciation

(depreciation)

..........................................................

$336,577,855

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$119,616,368

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

30

franklintempleton.com

Annual

Report

9.

Restricted

Securities

The

Fund

invests

in

securities

that

are

restricted

under

the

Securities

Act

of

1933

(1933

Act).

Restricted

securities

are

often

purchased

in

private

placement

transactions,

and

cannot

be

sold

without

prior

registration

unless

the

sale

is

pursuant

to

an

exemption

under

the

1933

Act.

Disposal

of

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

The Fund

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

At

July

31,

2020,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

Shares/Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Gold

And

Precious

Metals

Fund

1,725,000

Artemis

Gold,

Inc.

......................

6/29/20

$

3,404,854

$

5,930,755

550,000

a

Bluestone

Resources,

Inc.,

3/19/21

.........

2/20/19

76,682

227,366

1,900,000

Clean

Air

Metals

,

Inc.,

2/11/22

.............

2/04/20

—

124,750

770,000

b

Dundee

Precious

Metals

Inc.,

5/13/21

.......

5/07/20

55

1,376,082

5,000,000

c

Euro

Sun

Mining,

Inc.,

6/05/23

.............

6/09/20

—

888,663

23,023,100

Gascoyne

Resources

Ltd.

................

2/21/17-4/05/19

5,074,788

329,023

463,000

d

HighGold

Mining,

Inc.

....................

7/23/20

597,575

646,256

1,089,000

e

Lion

One

Metals

Ltd.,

6/06/21

..............

12/04/19

86,156

922,513

6,375,000

Lydian

International

Ltd.

..................

11/24/17

2,098,016

—

25,250,000

Lydian

International

Ltd.,

144A

.............

3/06/12

14,750,154

—

1,153,000

f

Marathon

Gold

Corp.,

5/26/21

.............

5/27/20

—

553,408

3,850,000

g

Mawson

Resources

Ltd.,

5/20/22

...........

5/22/20

—

451,798

1,700,000

O3

Mining,

Inc.

.........................

5/28/20

2,899,971

3,068,312

850,000

O3

Mining,

Inc.,

6/18/22

..................

6/23/20

—

333,248

460,000

h

Orla

Mining

Ltd.,

2/15/21

.................

2/12/18

95,417

1,147,081

4

,

250

,000

Osisko

Metals,

Inc.

......................

6/19/20

11,402,058

13,056,565

2,215

,000

Osisko

Metals

,

Inc.

,

12/23/21

..............

6/24/20

—

422,9

12

3,000,000

i

Skeena

Resources

Ltd

...................

4/15/20

1,619,987

6,137,558

3,350,000

Vizsla

Resources

Corp.

..................

7/23/20

4,673,605

7,064,933

Total

Restricted

Securities

(Value

is

3.16%

of

Net

Assets)

.......

$46,779,318

$42,681,223

a

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$10,336,718

as

of

July

31,

2020.

b

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$11,612,662

as

of

July

31,

2020.

c

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$4,106,316

as

of

July

31,

2020.

d

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$5,877,259

as

of

July

31,

2020.

e

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$14,317,873

as

of

July

31,

2020.

f

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$3,959,833

as

of

July

31,

2020.

g

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$2,788,189

as

of

July

31,

2020.

h

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$25,919,863

as

of

July

31,

2020.

i

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$8,582,574

as

of

July

31,

2020.

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

31

franklintempleton.com

Annual

Report

10.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

The

1940

Act

defines

"affiliated

companies"

to

include

investments

in

portfolio

companies

in

which

a

fund

owns

5%

or

more

of

the

outstanding

voting

securities.

During

the

year

ended

July

31,

2020

,

investments

in

“affiliated

companies”

were

as

follows:

Value

at

Beginning

of

Year

Purchases

a

Sales

a

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares/Principal

Amount

*

Held

at

End

of

Year

Investment

Income

Franklin

Gold

And

Precious

Metals

Fund

Non-Controlled

Affiliates

Dividends

Ascot

Resources

Ltd

......

$

339,458

$

8,087,361

$

—

$

—

$

5,015,170

$

13,441,989

16,220,000

$

—

Battle

North

Gold

Corp

.....

3,431,843

1,494,193

—

—

6,973,106

11,899,142

8,008,900

—

Bluestone

Resources,

Inc.,

144A

...............

2,235,272

4,939,492

—

—

—

b

—

b

—

b

—

Bluestone

Resources,

Inc.,

3/19/21

..............

26,646

—

—

—

—

b

—

b

—

b

—

Chalice

Gold

Mines

Ltd

.....

3,504,992

—

(2,280,158)

1,132,060

18,702,493

21,059,387

28,229,652

—

Dacian

Gold

Ltd

..........

3,793,518

4,849,486

(396,799)

(401,376)

(171,414)

7,673,415

32,555,556

—

Euro

Sun

Mining,

Inc

......

—

2,884,829

—

—

1,221,487

4,106,316

10,000,000

—

Euro

Sun

Mining,

Inc.,

6/05/23

—

—

—

—

888,663

888,663

5,000,000

—

Geopacific

Resources

Ltd

...

1,917,956

2,733,982

—

—

1,092,315

5,744,253

13,001,094

—

Guyana

Goldfields

Inc

,

144A

.

5,278,575

—

—

—

—

b

—

b

—

b

—

Guyana

Goldfields

Inc.

.....

7,387,545

713,255

(4,397,728)

(9,111,543)

5,408,471

—

c

—

—

HighGold

Mining,

Inc.

......

—

4,212,033

—

—

2,311,482

6,523,515

4,303,000

—

INV

Metals,

Inc.

..........

1,790,794

—

—

—

—

b

—

b

—

b

—

Lion

One

Metals

Ltd

.......

2,591,400

569,079

(892,288)

563,386

6,249,138

9,080,715

5,089,000

—

Lion

One

Metals

Ltd.,

6/06/21

—

86,157

—

—

836,356

922,513

1,089,000

—

Lion

One

Metals

Ltd.,

144A

..

1,690,169

—

—

—

3,546,989

5,237,158

2,935,000

—

Lydian

International

Ltd,

144A

2,395,189

—

(619,781)

(550,931)

—

b

—

b

—

b

—

Lydian

International

Ltd.

....

483,046

—

—

—

—

b

—

b

—

b

—

Perseus

Mining

Ltd.

.......

33,001,379

—

(11,291,046)

5,324,200

—

b

—

b

—

b

—

Platinum

Group

Metals

Ltd.,

(CAD

Traded),

144A

.....

137,779

—

—

—

74,616

212,395

97,760

—

Platinum

Group

Metals

Ltd.,

(CAD

Traded)

.........

3,174,983

—

—

—

1,719,455

4,894,438

2,252,787

—

Platinum

Group

Metals

Ltd.,

(USD

Traded),

144A

.....

51,622

—

—

—

27,957

79,579

36,628

—

Platinum

Group

Metals

Ltd.,

(USD

Traded)

.........

2,270,121

3,989,026

—

(8)

4,036,896

10,296,035

4,766,683

—

Platinum

Group

Metals

Ltd.,

wts

75,938

—

—

(138,486)

62,548

—

c

—

—

Red

5

Ltd

..............

18,840,036

5,061,239

—

—

5,421,572

29,322,847

162,268,146

—

RTG

Mining,

Inc.,

144A

.....

163,517

—

—

—

69,209

232,726

2,397,790

—

RTG

Mining,

Inc.,

CDI

......

2,766,818

372,821

—

—

1,387,713

4,527,352

50,687,582

—

RTG

Mining,

Inc

.........

120,699

—

—

—

51,086

171,785

1,769,918

—

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

32

franklintempleton.com

Annual

Report

11.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2

billion

(Global

Credit

Facility)

which

matures

on

February

5,

2021.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

year

ended

July

31,

2020,

the

Fund

did

not

use

the

Global

Credit

Facility.

12.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund’s

financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund’s

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares/Principal

Amount

*

Held

at

End

of

Year

Investment

Income

Franklin

Gold

And

Precious

Metals

Fund

(continued)

Non-Controlled

Affiliates

Interest

Platinum

Group

Metals

Ltd.,

Sub.

Note,

6.875%,

7/01/22

$

2,206,500

$

—

$

—

$

—

$

51,000

$

2,257,500

3,000,000

$

230,433

d

Total

Affiliated

Securities

(Value

is

10.3%

of

Net

Assets)

..............

$99,675,795

$39,992,953

$(19,877,800)

(3,182,698)

64,976,308

$138,571,723

$230,433

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

include

accretion,

amortization,

partnership

adjustments,

and/or

corporate

actions.

b

As

of

July

31,

2020,

no

longer

an

affiliate.

c

As

of

July

31,

2020,

no

longer

held

by

the

fund.

d

Includes

non-cash

dividend/interest

received.

10.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

33

franklintempleton.com

Annual

Report

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

July

31,

2020,

in

valuing

the

Fund’s

assets

carried

at

fair

value,

is

as

follows:

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the

year.

At

July

31,

2020,

the

reconciliation

of

assets,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Gold

and

Precious

Metals

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Copper

..............................

$

4,382,860

$

—

$

—

$

4,382,860

Diversified

Metals

&

Mining

...............

75,920,831

8,700,155

20,121,49

8

104,742,484

Gold

................................

806,550,171

260,695,032

16,111,904

a

1,083,357,107

Precious

Metals

&

Minerals

...............

41,889,669

55,599,410

—

97,489,079

Silver

...............................

19,179,007

11,583,072

—

30,762,079

Rights

................................

1,545,251

—

—

1,545,251

Warrants

:

Diversified

Metals

&

Mining

...............

—

—

3,262,570

3,262,570

Gold

................................

—

—

3,185,251

3,185,251

Precious

Metals

&

Minerals

...............

—

1,305,873

—

1,305,873

Convertible

Bonds

.......................

—

2,257,500

—

2,257,500

Short

Term

Investments

...................

15,405,454

1,278,477

—

16,683,931

Total

Investments

in

Securities

...........

$964,873,243

$341,419,519

$42,681,223

$1,348,973,985

a

Includes

securities

determined

to

have

no

value

at

July

31,

2020.

Balance

at

Beginning

of

Year

Purchases

Sales

Transfer

Into

Level

3

a

Transfer

Out

of

Level

3

b

Cost

Basis

Adjust-

ments

c

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Year

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Year

End

a

a

a

a

a

a

a

a

a

a

a

Assets:

Investments

in

Securities:

Common

Stocks

Diversified

Metals

&

Mining

....

$

—

$

16

,

075

,

66

2

$

—

$

—

$

—

$

—

$

(16,638,861)

$

20

,

684

,

697

$

20

,

121

,

49

8

$

4

,

045

,

836

Gold

.......

2,701,920

5,622,417

(170,134)

179,898

—

(2,441,417)

—

10,219,220

16,111,904

d

10,

002

,

664

Rights

Silver

.......

559,255

—

—

—

(1,184,384)

—

—

625,129

—

 —

Warrants

Diversified

Metals

&

Mining

....

43,010

d

—

d

—

—

—

—

—

3,

219

,

560

3,

262

,

570

3,

219

,

560

Gold

.......

—

55

d

—

—

—

86,157

—

3,099,039

3,185,251

3,099,039

Total

Investments

in

Securities

.........

$3,304,185

$21,698,134

$(170,134)

$179,898

$(1,184,384)

(2,355,260)

(16,638,861)

37,

847

,

645

$42,681,223

20

,

36

7,

099

12.

Fair

Value

Measurements

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

34

franklintempleton.com

Annual

Report

Significant

unobservable

valuation

inputs

for

material

Level

3

assets

and/or

liabilities

and

impact

to

fair

value

as

a

result

of

changes

in

unobservable

valuation

inputs

as

of

July

31,

2020,

are

as

follows:

13.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-

04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

The

amendments

in

the

ASU

provides

optional

temporary

financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021.

The

ASU

is

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

this

ASU

will

not

have

a

material

impact

on

the

financial

statements. 

a

The

investments

were

transferred

into

Level

3

as

a

result

of

the

unavailability

of

a

quoted

market

price

in

an

active

market

for

identical

securities

and

other

significant

observable

valuation

inputs.

b

The

investment

was

transferred

out

of

Level

3

as

a

result

of

the

availability

of

a

quoted

price

in

an

active

market

for

identical

securities.

c

May

include

accretion,

amortization,

partnership

adjustments,

and/or

other

cost

basis

adjustments.

d

Includes

securities

determined

to

have

no

value.

Description

Fair

Value

at

End

of

Year

Valuation

Technique

Unobservable

Inputs

Amount

/

Range

(Weighted

Average)

a

Impact

to

Fair

Value

if

Input

Increases

b

Franklin

Gold

and

Precious

Metals

Fund

Assets:

Investments

in

Securities:

Common

Stocks:

Diversified

Metals

&

Mining

...

$7,064,933

Discounted

cash

flow

30

Day

Volatility

58.7%

Decrease

Discount

for

lack

of

marketability

17.9%

Decrease

Lockup

Discount

7.8%

Decrease

Gold

....................

15,136,625

Discounted

cash

flow

Lockup

Discount

1.1%

-

8.6%

(5.2%)

Decrease

Precious

Metals

&

Minerals

...

13,056,566

Discounted

cash

flow

Discount

for

lack

of

marketability

3.4%

Decrease

Warrants:

Gold

....................

1,376,082

Discounted

cash

flow

30

Day

Volatility

43.5%

Decrease

c

Discount

for

lack

of

marketability

8.3%

Decrease

c

All

Other

Investments

.........

6,047,017

d,e

Total

.......................

$42,681,223

a

Weighted

based

on

the

relative

fair

value

of

the

financial

instruments.

b

Represents

the

directional

change

in

the

fair

value

that

would

result

from

a

significant

and

reasonable

increase

in

the

corresponding

input.

A

significant

and

reasonable

decrease

in

the

input

would

have

the

opposite

effect.

Significant

impacts,

if

any,

to

fair

value

and/or

net

assets

have

been

indicated.

c

Represents

a

significant

impact

to

fair

value

and

net

assets.

d

Includes

financial

instruments

with

values

derived

using

private

transaction

prices

or

non-public

third

party

pricing

information

which

is

unobservable.

May

also

include

fair

value

of

immaterial

financial

instruments

developed

using

various

valuation

techniques

and

unobservable

inputs.

e

Includes

securities

determined

to

have

no

value

at

July

31,

2020.

12.

Fair

Value

Measurements

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

35

franklintempleton.com

Annual

Report

14.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

Currency

CAD

Canadian

Dollar

GBP

British

Pound

USD

United

States

Dollar

Selected

Portfolio

ADR

American

Depositary

Receipts

CDI

CREST

Depository

Interest

CVR

Contingent

Voting

Rights

Franklin

Gold

and

Precious

Metals

Fund

Report

of

Independent

Registered

Public

Accounting

Firm

36

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

and

Shareholders

of

Franklin

Gold

and

Precious

Metals

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

statement

of

investments,

of

Franklin

Gold

and

Precious

Metals

Fund

(the

“Fund”)

as

of

July

31,

2020,

the

related

statement

of

operations

for

the

year

ended

July

31,

2020,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

July

31,

2020,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

July

31,

2020

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

July

31,

2020,

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

ended

July

31,

2020

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

July

31,

2020

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

July

31,

2020

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

September

21,

2020

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Gold

and

Precious

Metals

Fund

Tax

Information

(unaudited)

37

franklintempleton.com

Annual

Report

Under

Section

854(b)(1)(B)

of

the

Internal

Revenue

Code,

the

Fund

hereby

reports

the

maximum

amount

allowable

but

no

less

than

$5,063,852

as

qualified

dividends

for

purposes

of

the

maximum

rate

under

Section

1(h)(11)

of

the

Internal

Revenue

Code

for

the

fiscal

year

ended

July

31,

2020.

Distributions,

including

qualified

dividend

income,

paid

during

calendar

year

2020

will

be

reported

to

shareholders

on

Form

1099-DIV

by

mid-February

2021.

Shareholders

are

advised

to

check

with

their

tax

advisors

for

information

on

the

treatment

of

these

amounts

on

their

individual

income

tax

returns.

At

July

31,

2020,

more

than

50%

of

the

Fund's

total

assets

were

invested

in

securities

of

foreign

issuers.

In

most

instances,

foreign

taxes

were

withheld

from

income

paid

to

the

Fund

on

these

investments.

The

Fund

elects

to

treat

foreign

taxes

paid

as

allowed

under

Section

853

of

the

Internal

Revenue

Code.

This

election

will

allow

shareholders

of

record

as

of

the

2020

distribution

date,

to

treat

their

proportionate

share

of

foreign

taxes

paid

by

the

Fund

as

having

been

paid

directly

by

them.

The

shareholder

shall

consider

these

amounts

as

foreign

taxes

paid

in

the

tax

year

in

which

they

receive

the

Fund

distribution.

Franklin

Gold

and

Precious

Metals

Fund

Board

Members

and

Officers

38

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1982

129

Bar-S

Foods

(meat

packing

company)

(1981-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Director,

RBC

Holdings,

Inc.

(bank

holding

company)

(until

2002);

and

President,

Chief

Executive

Officer

and

Chairman

of

the

Board,

General

Host

Corporation

(nursery

and

craft

centers)

(until

1998).

Terrence

J.

Checki

(1945)

Trustee

Since

2017

110

Hess

Corporation

(exploration

of

oil

and

gas)

(2014-present).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Member

of

the

Council

on

Foreign

Relations

(1996-present);

Member

of

the

National

Committee

on

U.S.-China

Relations

(1999-present);

member

of

the

Board

of

Trustees

of

the

Economic

Club

of

New

York

(2013-present);

member

of

the

Board

of

Trustees

of

the

Foreign

Policy

Association

(2005-present)

and

member

of

various

other

boards

of

trustees

and

advisory

boards;

and

formerly

,

Executive

Vice

President

of

the

Federal

Reserve

Bank

of

New

York

and

Head

of

its

Emerging

Markets

and

Internal

Affairs

Group

and

Member

of

Management

Committee

(1995-2014);

and

Visiting

Fellow

at

the

Council

on

Foreign

Relations

(2014).

Mary

C.

Choksi

(1950)

Trustee

Since

2014

129

Avis

Budget

Group

Inc.

(car

rental)

(2007-present),

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

2003

and

Lead

Independent

Trustee

since

2019

129

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present),

Canadian

National

Railway

(railroad)

(2001-present),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-present),

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-present);

formerly

,

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison–United

States

Treasury

Department

(1988-1989).

Franklin

Gold

and

Precious

Metals

Fund

39

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

J.

Michael

Luttig

(1954)

Trustee

Since

2009

129

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Private

investor;

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(May

2019-January

1,

2020);

Executive

Vice

President,

General

Counsel

and

member

of

the

Executive

Council,

The

Boeing

Company

(2006-2019);

and

Federal

Appeals

Court

Judge,

United

States

Court

of

Appeals

for

the

Fourth

Circuit

(1991-2006).

Larry

D.

Thompson

(1945)

Trustee

Since

2007

129

The

Southern

Company

(energy

company)

(2014-present;

previously

2010-2012),

Graham

Holdings

Company

(education

and

media

organization)

(2011-present)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Trustee

Since

2007

140

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

39

of

the

investment

companies

in

Franklin

Templeton;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015),

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Chairman

of

the

Board

and

Trustee

Since

2013

129

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

37

of

the

investment

companies

in

Franklin

Templeton.

Alison

E.

Baur

(1964)

Vice

President

Since

2012

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Deputy

General

Counsel,

Franklin

Templeton;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

41

of

the

investment

companies

in

Franklin

Templeton.

Independent

Board

Members

(continued)

Franklin

Gold

and

Precious

Metals

Fund

40

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Breda

M.

Beckerle

(1958)

Interim

Chief

Compliance

Officer

Since

January

2020

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Compliance

Officer,

Fiduciary

Investment

Management

International,

Inc.,

Franklin

Advisers,

Inc.,

Franklin

Advisory

Services,

LLC,

Franklin

Mutual

Advisers,

LLC,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Gaston

Gardey

(1967)

Treasurer,

Chief

Financial

Officer

and

Chief

Accounting

Officer

Since

2009

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting

and

officer

of

24

of

the

investment

companies

in

Franklin

Templeton.

Steven

J.

Gray

(1955)

Vice

President

and

Co-Secretary

Vice

President

since

2009

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Vice

President,

Franklin

Templeton

Distributors,

Inc.

and

FASA,

LLC;

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Matthew

T.

Hinkle

(1971)

Chief

Executive

Officer

–

Finance

and

Administration

Since

2017

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

officer

of

41

of

the

investment

companies

in

Franklin

Templeton;

and

formerly

,

Vice

President,

Global

Tax

(2012-April

2017)

and

Treasurer/Assistant

Treasurer,

Franklin

Templeton

(2009-2017).

Robert

Lim

(1948)

Vice

President

–

AML

Compliance

Since

2016

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Vice

President,

Franklin

Templeton

Companies,

LLC;

Chief

Compliance

Officer,

Franklin

Templeton

Distributors,

Inc.

and

Franklin

Templeton

Investor

Services,

LLC;

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Edward

D.

Perks

(1970)

President

and

Chief

Executive

Officer

–

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

President

and

Director,

Franklin

Advisers,

Inc.;

and

officer

of

eight

of

the

investment

companies

in

Franklin

Templeton

(since

December

2018).

Interested

Board

Members

and

Officers

(continued)

Franklin

Gold

and

Precious

Metals

Fund

41

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

currently

serves

as

a

director

of

Avis

Budget

Group,

Inc.

(2007-present)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Robert

C.

Rosselot

(1960)

Chief

Compliance

Officer

Since

2013

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director,

Global

Compliance,

Franklin

Templeton;

Senior

Vice

President,

Franklin

Templeton

Companies,

LLC;

officer

of

41

of

the

investment

companies

in

Franklin

Templeton;

and

formerly

,

Senior

Associate

General

Counsel,

Franklin

Templeton

(2007-2013);

and

Secretary

and

Vice

President,

Templeton

Group

of

Funds

(2004-2013).

Navid

J.

Tofigh

(1972)

Vice

President

Since

2015

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Associate

General

Counsel

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Craig

S.

Tyle

(1960)

Vice

President

Since

2005

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

General

Counsel

and

Executive

Vice

President,

Franklin

Resources,

Inc.;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

41

of

the

investment

companies

in

Franklin

Templeton.

Lori

A.

Weber

(1964)

Vice

President

and

Co-Secretary

Vice

President

since

2011

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

Vice

President

and

Secretary,

Templeton

Investment

Counsel,

LLC;

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Interested

Board

Members

and

Officers

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Shareholder

Information

42

franklintempleton.com

Annual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

GOLD

AND

PRECIOUS

METALS

FUND

(Fund)

At

a

meeting

held

on

April

7,

2020

(Meeting),

the

Board

of

Trustees

(Board)

of

the

Fund,

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Fund

(Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

the

Management

Agreement.

In

considering

the

continuation

of

the

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

telephonic

contract

renewal

meeting

at

which

the

Independent

Trustees

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters

and,

in

some

cases,

requested

additional

information

from

the

Manager

relating

to

the

contract.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

the

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

the

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

the

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

the

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

the

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

Management

Agreement

is

in

the

interests

of

the

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

the

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Fund

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements,

which

included

discussion

of

the

changing

distribution

landscape

for

the

Fund.

The

Board

noted

management’s

continuing

efforts

and

expenditures

in

establishing

effective

business

continuity

plans

and

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

such

as

cybersecurity

and

liquidity

risk

management.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

continued

introduction

of

new

funds,

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Fund

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

enhancing

services

and

controlling

costs,

as

reflected

in

its

plan

to

outsource

certain

administrative

functions,

and

growth

opportunities,

as

evidenced

by

its

upcoming

acquisition

of

the

Legg

Mason

companies.

The

Franklin

Gold

and

Precious

Metals

Fund

Shareholder

Information

43

franklintempleton.com

Annual

Report

Board

acknowledged

the

change

in

leadership

at

FRI

and

the

opportunity

to

hear

from

Jennifer

Johnson,

President

and

Chief

Executive

Officer

of

FRI,

about

goals

she

has

for

the

company

that

will

benefit

the

Fund.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

the

Fund

over

various

time

periods

ended

January

31,

2020.

The

Board

considered

the

performance

returns

for

the

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

the

Fund’s

performance

results

is

below.

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

precious

metals

equity

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

three-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

one-

and

five-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-year

period

was

34.11%

and

in

the

first

quintile

(best)

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

the

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

the

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

as

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

the

Fund

and

for

each

of

the

other

funds

in

the

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Expense

Group

for

the

Fund

included

the

Fund

and

eight

other

precious

metals

equity

funds.

The

Board

noted

that

the

Management

Rate

and

actual

total

expense

ratio

for

the

Fund

were

below

the

medians

and

in

the

first

quintile

(least

expensive)

of

its

Expense

Group.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

the

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2019,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Fund’s

profitability

report

presentations

from

prior

years.

Additionally,

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

was

engaged

by

the

Manager

to

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Fund’s

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

the

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

Franklin

Gold

and

Precious

Metals

Fund

Shareholder

Information

44

franklintempleton.com

Annual

Report

by

management.

As

part

of

this

evaluation,

the

Board

considered

the

initiative

currently

underway

to

outsource

certain

operations,

which

effort

would

require

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Fund,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements,

notably

in

the

area

of

cybersecurity

protections.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

the

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

the

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

the

Fund

grows

larger

and

whether

the

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

the

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

concluded

that

to

the

extent

economies

of

scale

may

be

realized

by

the

Manager

and

its

affiliates,

the

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

the

Management

Agreement

for

an

additional

one-year

period.

Liquidity

Risk

Management

Program

The

Funds

have

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940.

The

program

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

taking

into

consideration

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

The

Funds’

Board

of

Trustees

approved

the

appointment

of

the

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

as

the

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

FT

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Investment

Compliance,

Investment

Operations,

Valuation

Committee

and

Product

Management

groups.

The

LRMP

Administrator

Annual

Report

was

presented

to

the

Fund(s)

Board

of

Trustees

at

their

meetings

in

May

2020.

The

report

covered

the

adequacy

and

effectiveness

of

the

program

during

the

period

December

1,

2018

to

December

31,

2019

(the

“covered

period”).

The

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

addition,

the

LRMP

Administrator

presented

the

Fund

Board

of

Trustees

an

update

on

liquidity

during

the

first

quarter

of

2020

in

relation

to

the

COVID-19

pandemic.

During

the

reporting

period,

the

Fund

maintained

a

high

level

of

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments."

As

a

result,

the

Fund

was

designated

a

“Primarily

Highly

Liquid

Fund”

as

defined

under

the

Liquidity

Rule

and

has

not

adopted

a

"Highly

Liquid

Investment

Minimum."

A

Highly

Liquid

Investment

is

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

Franklin

Gold

and

Precious

Metals

Fund

Shareholder

Information

45

franklintempleton.com

Annual

Report

There

can

be

no

assurance

that

the

program

will

achieve

its

objectives

in

the

future.

Please

refer

to

your

Fund’s

prospectus

for

more

information

regarding

the

Fund’s

exposure

to

liquidity

risk

and

other

principal

risks

to

which

an

investment

in

the

Fund

may

be

subject.

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Statement

of

Investments

The

Fund

files

a

complete

statement

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive

the

Fund’s

financial

reports

every

six

months

as

well

as

an

annual

updated

summary

prospectus

(prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

132

A

09/20

©

2020

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Annual

Report

and

Shareholder

Letter

Franklin

Gold

and

Precious

Metals

Fund

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Templeton

Distributors,

Inc.

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2.  Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3.  Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4. Principal Accountant Fees and Services.      

(a)      Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $62,483 for the fiscal year ended July 31, 2020 and $62,094 for the fiscal year ended July 31, 2019.

(b)      Audit-Related Fees

The aggregate fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4 were $3,133 for the fiscal year ended July 31, 2020 and $3,133 for the fiscal year ended July 31, 2019.  The services for which these fees were paid included attestation services.

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.  

(c)      Tax Fees

There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $0 for the fiscal year ended July 31, 2020 and $20,000 for the fiscal year ended July 31, 2019.  The services for which these fees were paid included professional fees in connection with tax treatment of equipment lease transactions.

(d)      All Other Fees

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not  reported in paragraphs (a)-(c) of Item 4 were $357 for the fiscal year ended July 31, 2020 and $0 for the fiscal year ended July 31, 2019.  The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process. 

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $183,444 for the fiscal year ended July 31, 2020 and $14,500 for the fiscal year ended July 31, 2019.  The services for which these fees were paid included for the issuance of an Auditor's Certificate for South Korean regulatory shareholders disclosures, professional fees in connection with determining the feasibility of a U.S. direct lending structure, valuation services related to a fair value engagement, and benchmarking services in connection with the ICI TA Survey.  

(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:

      (i)   pre-approval of all audit and audit related services;

      (ii)  pre-approval of all non-audit related services to be provided to the Fund by the auditors;

      (iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and

      (iv)  establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.

(f) No disclosures are required by this Item 4(f).

(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $186,934 for the fiscal year ended July 31, 2020 and $37,633 for the fiscal year ended July 31, 2019.

(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5.  Audit Committee

 

of Listed Registrants.       N/A

Item 6.  Schedule of Investments.                     N/A

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.            N/A

Item 8.  Portfolio Managers of Closed-End Management Investment Companies.                               N/A

Item 9.  Purchases of Equity Securities by Closed-End Management Investment Company and

Affiliated Purchasers.     N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a)

 Evaluation of Disclosure Controls and Procedures.

The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b)

 Changes in Internal Controls.

During the period covered by this report, a third-party service provider commenced performing certain accounting and administrative services for the Registrant that are subject to Franklin Templeton’s oversight.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company                                   N/A

Item 13. Exhibits.

(a) (1) Code of Ethics

Code of Ethics

(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Gaston Gardey, Chief Financial Officer and Chief Accounting Officer

Section 302

(b)   Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Gaston Gardey, Chief Financial Officer and Chief Accounting Officer

Section 906

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FRANKLIN GOLD AND PRECIOUS METALS FUND

By __S\MATTHEW T. HINKLE______________________

      Matthew T. Hinkle

      Chief Executive Officer – Finance and Administration

Date

September 25, 2020

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By __S\MATTHEW T. HINKLE______________________

      Matthew T. Hinkle

      Chief Executive Officer – Finance and Administration

Date

September 25, 2020

By _S\GASTON GARDEY________________________

Gaston Gardey

      Chief Financial Officer

and Chief Accounting Officer

Date September

25, 2020