N-CSRS 1 primary-document.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM N-CSRS
 
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: 1/31/22
 
 
Item 1.  Reports to Stockholders.
 
 
a.) The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)
 
 
b.) A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Report. Not Applicable.
SEMIANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Franklin
Gold
and
Precious
Metals
Fund
January
31,
2022
Sign
up
for
electronic
delivery
at
franklintempleton.com/edelivery
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FDIC
Insured
May
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Value
No
Bank
Guarantee
franklintempleton.com
Semiannual
Report
1
Shareholder
Letter
Dear
Shareholder:
During
the
six
months
ended
January
31,
2022,
the
global
economy
was
negatively
impacted
by
the
spread
of
the
highly
contagious
Omicron
variant
of
COVID-19.
An
increase
in
consumer
demand
and
continued
supply-chain
disruptions
contributed
to
higher
inflation
in
many
countries
over
the
period.
Several
central
banks
raised
interest
rates
to
curb
inflation,
causing
investor
concerns
regarding
a
slowdown
in
economic
growth.
The
U.S.
Federal
Reserve
(Fed),
the
European
Central
Bank
and
the
Bank
of
Japan
kept
their
policy
rates
unchanged.
However,
the
Fed
noted
in
its
January
2022
meeting
that
it
would
consider
raising
interest
rates
soon
due
to
increased
employment
and
rising
inflation.
In
this
environment,
U.S.
stocks,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
posted
a
+3.44%
total
return
for
the
period,
and
global
developed
market
stocks,
as
measured
by
the
MSCI
World
Index,
posted
a
+0.45%
total
return.
1
After
starting
the
period
at
$1,814
per
ounce,
gold
prices
fell
to
$1,726
per
ounce
in
September
2021
amid
fears
of
a
pullback
of
stimulus
measures
by
central
banks,
a
strong
U.S.
dollar
and
increased
interest
in
cryptocurrencies.
2
Prices
then
rose
to
$1,867
per
ounce
in
mid-November
2021,
spurred
by
demand
from
jewelry
consumers
in
Asia
and
slowing
gold
ETF
outflows.
2
Gold
prices
pulled
back
to
$1,797
per
ounce
by
the
end
of
January
2022,
pressured
by
renewed
signs
the
Fed
would
raise
interest
rates
to
tackle
elevated
inflation.
2
In
this
environment,
gold
stocks,
as
measured
by
the
FTSE
®
Gold
Mines
Index,
posted
a
total
return
of
-10.71%
for
the
six-month
period.
1
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
professionals
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
semiannual
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
January
31,
2022,
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:
Morningstar.
2.
Source:
Bloomberg
LP.
Based
on
spot
prices
quoted
in
U.S.
dollars
per
troy
ounce.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
franklintempleton.com
Semiannual
Report
2
Contents
Semiannual
Report
Franklin
Gold
and
Precious
Metals
Fund
3
Performance
Summary
7
Your
Fund’s
Expenses
9
Financial
Highlights
and
Statement
of
Investments
10
Financial
Statements
19
Notes
to
Financial
Statements
23
Shareholder
Information
37
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Semiannual
Report
SEMIANNUAL
REPORT
Franklin
Gold
and
Precious
Metals
Fund
This
semiannual
report
for
Franklin
Gold
and
Precious
Metals
Fund
covers
the
period
ended
January
31,
2022
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
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
-6.81%
cumulative
total
return
for
the
six
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
-10.71%
cumulative
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
+3.44%
cumulative
total
return.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
7
.
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-NR,
posted
a
-0.32%
total
return
for
the
six
months
ended
January
31,
2022.
1
The
combination
of
increased
consumer
demand
and
persistent
supply-chain
disruptions
contributed
to
higher
inflation
in
many
countries.
This
inflationary
pressure
led
many
of
the
world’s
central
banks
to
adopt
less
accommodative
stances
regarding
monetary
policy.
The
spread
of
the
highly
contagious
Omicron
variant
of
COVID-19
introduced
further
uncertainty
into
equity
markets.
Additionally,
the
Chinese
government’s
imposition
of
new
restrictions
on
some
businesses
pressured
Asian
and
global
emerging
market
stocks.
In
the
U.S.,
the
economy
continued
to
recover
amid
declining
unemployment,
solid
wage
growth
and
strong
business
confidence.
Gross
domestic
product
(GDP)
growth
accelerated
in
the
fourth
quarter
of
2021,
as
strong
consumer
and
business
spending
supported
the
economy.
Solid
corporate
earnings
and
the
passage
of
a
bipartisan
infrastructure
bill
further
bolstered
investor
sentiment.
The
U.S.
Federal
Reserve
(Fed)
kept
the
federal
funds
target
rate
at
a
record-low
range
of
0.00%–0.25%
and
continued
its
program
of
open-ended
U.S.
Treasury
(UST)
and
mortgage
bond
purchases
to
help
keep
markets
functioning.
However,
in
its
January
2022
meeting
statement,
the
Fed
noted
that
due
to
employment
gains
and
elevated
inflation,
it
expected
conditions
would
soon
be
appropriate
for
raising
interest
rates.
Furthermore,
the
Fed
maintained
its
timetable
for
reducing
its
purchases
of
UST
and
mortgage-backed
securities.
Economic
growth
slowed
in
the
eurozone,
declining
notably
in
the
fourth
quarter
of
2021
as
the
spread
of
Omicron
disrupted
labor
markets
and
led
to
renewed
restrictions.
Additionally,
in
January
2022,
the
annual
inflation
rate
in
the
eurozone
reached
the
highest
level
on
record,
and
the
prospect
of
energy
shortages
during
the
winter
tempered
Geographic
Composition
1/31/22
%
of
Total
Net
Assets
Canada
51.1%
Australia
23.1%
South
Africa
7.9%
Burkina
Faso
5.1%
United
States
4.8%
Tanzania
2.4%
Kyrgyzstan
2.0%
Turkey
1.3%
Egypt
1.3%
Other
0.7%
Short-Term
Investments
&
Other
Net
Assets
0.3%
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.
Net
Returns
(NR)
include
income
net
of
tax
withholding
when
dividends
are
paid.
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
14
.
Franklin
Gold
and
Precious
Metals
Fund
4
franklintempleton.com
Semiannual
Report
investor
optimism.
Although
the
European
Central
Bank
maintained
an
accommodative
monetary
policy
stance
at
its
most
recent
meeting
in
December
2021,
the
Fed’s
move
toward
a
tighter
monetary
policy
and
geopolitical
tensions
surrounding
Ukraine
negatively
impacted
European
stocks.
Consequently,
European
developed
market
equities,
as
measured
by
the
MSCI
Europe
Index-NR,
posted
a
-2.54%
total
return
for
the
six
months
under
review.
1
Asian
developed
and
emerging
market
equities,
as
measured
by
the
MSCI
All
Country
Asia
Index-NR,
posted
a
-5.21%
total
return
for
the
six-month
period.
1
Although
China’s
economy
continued
to
grow,
it
was
pressured
by
COVID-19
restrictions,
government
measures
to
limit
real
estate
speculation,
increased
fuel
costs
and
production
disruptions
caused
by
government-mandated
suspensions
of
power
use.
Asian
equity
markets
experienced
heightened
volatility
due
to
inflation
concerns
and
elevated
infection
rates
in
some
countries.
Unexpected
regulatory
changes
by
the
Chinese
government,
which
negatively
impacted
education-
and
technology-related
businesses,
and
investor
concerns
about
several
large
Chinese
property
developers’
solvency
further
pressured
Asian
stocks
during
the
six-month
period.
Global
emerging
market
stocks,
as
measured
by
the
MSCI
Emerging
Markets
Index-NR,
posted
a
-4.59%
total
return
for
the
six
months
under
review.
1
Higher
per-capita
COVID-19
cases
in
some
countries,
rising
interest
rates
and
elevated
inflation
dampened
investor
enthusiasm
in
global
emerging
market
equities.
Interest-rate
increases
to
curb
inflation
by
several
central
banks,
including
those
of
Brazil,
Russia
and
Mexico,
raised
investor
concerns
about
a
slowdown
in
economic
growth.
Precious
Metals
Prices
(7/31/21–1/31/22
)*
*Source:
Bloomberg
LP.
Amounts
shown
are
based
on
spot
prices
quoted
in
U.S.
dollars
per
troy
ounce.
For
illustrative
purposes
only;
not
representative
of
the
Fund’s
portfolio
composition
or
performance.
Precious
Metals
Sector
Overview
Gold
prices
declined
marginally
during
the
six-month
period
ended
January
31,
2022.
After
starting
the
period
at
$1,814
per
ounce,
prices
dropped
to
$1,726
per
ounce
in
September
2021
despite
instability
in
equity
markets,
which
usually
increases
demand
for
gold
as
a
perceived
safe
haven.
2
The
decline
in
gold
prices
was
largely
due
to
fears
of
a
pullback
of
extraordinary
stimulus
measures
by
central
banks
and
a
strong
U.S.
dollar,
as
well
as
increased
interest
in
highly
volatile
cryptocurrencies
such
as
Bitcoin.
Gold
prices
then
rose
to
$1,867
per
ounce
in
mid-November
2021,
spurred
by
demand
from
jewelry
consumers
in
Asia,
strong
gold
bar
demand
and
slowing
outflows
from
gold
ETFs.
2
Despite
resilient
hedging
demand
due
in
part
to
persistent
high
inflation
data
and
elevated
geopolitical
tensions,
prices
dropped
again
in
January
2022,
pressured
by
renewed
signs
the
Fed
would
raise
interest
rates
to
tackle
elevated
inflation.
In
this
environment,
gold
ended
the
period
at
$1,797
per
ounce,
down
less
than
one
percent
having
traded
in
a
fairly
narrow
range
for
the
six
months
under
review.
2
Other
precious
metals
prices
declined
as
well.
Silver
prices
saw
a
double-digit
percentage
decline
during
the
period
due
to
reduced
demand
from
industrial
buyers
such
as
electronic
manufacturers
and
jewelry
makers
in
particular,
along
with
supply
increases
widely
expected
in
2022.
2
Palladium
prices
also
fell
by
double-digit
percentage
points,
2.
Source:
Bloomberg
LP.
Based
on
spot
prices
quoted
in
U.S.
dollars
per
troy
ounce.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Franklin
Gold
and
Precious
Metals
Fund
5
franklintempleton.com
Semiannual
Report
largely
due
to
global
semiconductor
chip
shortages
which
held
up
automotive
production,
the
primary
end
market
for
the
metal.
2
Larger
losses
were
averted
by
a
rally
in
January
2022
due
to
fears
about
supplies
from
Russia,
the
world’s
largest
palladium
producer,
being
disrupted
by
a
potential
conflict
with
Ukraine.
Platinum
prices
declined
modestly,
also
due
to
the
aforementioned
decline
in
demand
from
the
automotive
industry.
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
six-month
period
included
Great
Bear
Resources,
Red
5
and
Pretium
Resources.
Great
Bear
Resources
(not
part
of
the
index)
is
a
Canadian
gold
exploration
and
development
company
with
operations
near
Red
Lake
in
western
Ontario,
Canada.
Shares
of
Great
Bear
hit
an
all-time
high
in
December
2021
after
Canadian
gold
miner
Kinross
Gold
(not
a
Fund
holding)
launched
a
bid
to
acquire
the
company
in
a
cash
and
stock
deal.
This
deal,
among
others
in
the
period,
supported
our
view
that
the
gold
mining
industry
will
see
an
increase
in
merger-and-
acquisition
activity
following
years
of
underinvestment.
Red
5
(not
part
of
the
index)
is
a
gold
miner
with
multiple
operations
in
Australia.
Shares
rose
after
positive
third-
quarter
2021
earnings
and
continued
progress
at
the
company’s
King
of
the
Hill
(KOTH)
project
in
Western
Australia,
including
the
installation
of
the
mill
and
crusher.
KOTH
is
scheduled
to
start
gold
production
in
the
second
quarter
of
2022.
Red
5
also
updated
the
mine
plan
for
its
nearby
Darlot
Gold
Mine
to
utilize
excess
capacity
at
the
new
KOTH
processing
plant,
which
we
believe
will
increase
overall
operational
efficiency.
Red
5
completed
the
sale
of
its
Philippines
operations
in
September
2021
as
a
way
to
simplify
the
organization
and
help
fund
the
growth
initiatives
in
Australia.
Pretium
Resources
owns
and
operates
the
Brucejack
underground
gold
mine
in
northwestern
British
Columbia,
Canada.
Investors
reacted
positively
to
Australia-based
Newcrest
Mining
(also
a
Fund
holding)
launching
an
acquisition
bid
for
Pretium
in
November
2021.
The
deal
is
expected
to
close
in
the
first
quarter
of
2022
and
would
give
Newcrest
a
second
operating
mine
in
British
Columbia.
Key
detractors
from
absolute
performance
included
Platinum
Group
Metals,
Newcrest
Mining
and
Barrick
Gold.
Canadian-headquartered
Platinum
Group
Metals
(not
part
of
the
index)
operates
and
partially
owns
the
Waterberg
Platinum
Group
Metals
Project
in
northeastern
South
Africa.
Palladium
makes
up
a
majority
of
reserves
at
the
site,
which
is
still
in
the
pre-construction
phase.
Earlier
in
2021,
investors
bid
up
prices
of
platinum-
and
palladium-focused
companies
due
to
mine
disruptions
and
deepening
supply
shortages.
Those
concerns
abated
during
the
second
half
of
2021,
before
concerns
of
potential
trade
impacts
from
Russian
activity
in
Ukraine
helped
draw
interest
back
to
the
commodity
at
period-end.
Impala
Platinum
Holdings
(also
a
Fund
holding),
one
of
the
world’s
largest
platinum
and
palladium
producers,
is
a
minority
owner
in
the
Waterberg
project,
which
has
attracted
speculation
that
Impala
could
look
to
acquire
Platinum
Group
Metals.
This
appeared
unlikely
in
the
near-term
after
Impala
launched
a
bid
to
acquire
Royal
Bafokeng
Platinum
(also
a
Fund
holding)
in
October
2021.
Newcrest
Mining
is
an
Australian-headquartered
gold
miner
with
operations
in
Australia,
Canada
and
Papua
New
Guinea.
Shares
fell
after
the
company
launched
a
bid
to
acquire
the
previously
mentioned
Pretium
Resources,
whose
Portfolio
Composition
1/31/22
%
of
Total
Net
Assets
Gold
75.5%
Diversified
Metals
&
Mining
13.0%
Precious
Metals
&
Minerals
8.4%
Silver
2.3%
Other
0.5%
Short-Term
Investments
&
Other
Net
Assets
0.3%
Franklin
Gold
and
Precious
Metals
Fund
6
franklintempleton.com
Semiannual
Report
sole
mine
is
located
near
Newcrest’s
existing
Canadian
operation.
Newcrest
shares
underperformed
in
late
January
after
releasing
their
fiscal
year
2022
second-quarter
production
report,
which
highlighted
weaker-than-expected
performance
from
several
of
their
key
operations.
Barrick
Gold
is
a
Canadian
gold
miner
with
global
operations,
including
in
North
America,
South
America
and
Africa.
The
company’s
share
price
was
dragged
down
by
falling
gold
prices
and
weak
third-quarter
2021
corporate
results.
Barrick
is
the
second
largest
producer
of
gold
in
the
world
behind
Newmont
(also
a
Fund
holding).
For
the
six
months
ended
January
31,
2022,
the
U.S.
dollar
rose
in
value
relative
to
most
foreign
currencies.
As
a
result,
the
Fund’s
performance
was
negatively
affected
by
currency
appreciation
from
the
portfolio’s
investment
predominantly
in
securities
with
non-U.S.
currency
exposure.
However,
one
cannot
expect
the
same
result
in
future
periods.
Whether
the
U.S.
dollar
goes
up
or
weakens
compared
with
foreign
currencies,
company-specific
factors
may
offset
the
effects
of
the
currency
movements
on
the
value
of
individual
investments
and,
possibly,
the
Fund’s
performance
overall.
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
January
31,
2022,
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.
Top
10
Holdings
1/31/22
Company
Sub-Industry
%
of
Total
Net
Assets
A
a
Endeavour
Mining
plc
5.1%
Gold
Barrick
Gold
Corp.
4.6%
Gold
Newmont
Corp.
4.0%
Gold
SSR
Mining,
Inc.
3.3%
Gold
Impala
Platinum
Holdings
Ltd.
3.2%
Precious
Metals
&
Minerals
Perseus
Mining
Ltd.
3.2%
Gold
Newcrest
Mining
Ltd.
3.1%
Gold
Red
5
Ltd.
2.9%
Gold
Alamos
Gold,
Inc.
2.5%
Gold
Osisko
Mining,
Inc.
2.5%
Gold
Performance
Summary
as
of
January
31,
2022
Franklin
Gold
and
Precious
Metals
Fund
7
franklintempleton.com
Semiannual
Report
The
performance
table
does
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
1/31/22
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
6-Month
-6.81%
-11.93%
1-Year
-3.21%
-8.54%
5-Year
+38.98%
+5.60%
10-Year
-32.13%
-4.35%
Advisor
6-Month
-6.66%
-6.66%
1-Year
-2.97%
-2.97%
5-Year
+40.69%
+7.07%
10-Year
-30.41%
-3.56%
See
page
8
for
Performance
Summary
footnotes.
Franklin
Gold
and
Precious
Metals
Fund
Performance
Summary
8
franklintempleton.com
Semiannual
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.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adverse-
ly
affect
performance.
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.
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.
Distributions
(8/1/21–1/31/22)
Share
Class
Net
Investment
Income
A
$2.0609
C
$1.9511
R6
$2.1143
Advisor
$2.0979
Total
Annual
Operating
Expenses
4
Share
Class
A
0.90%
Advisor
0.65%
Your
Fund’s
Expenses
Franklin
Gold
and
Precious
Metals
Fund
9
franklintempleton.com
Semiannual
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
184/365
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
8/1/21
Ending
Account
Value
1/31/22
Expenses
Paid
During
Period
8/1/21–1/31/22
1,2
Ending
Account
Value
1/31/22
Expenses
Paid
During
Period
8/1/21–1/31/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$931.90
$4.35
$1,020.71
$4.55
0.89%
C
$1,000
$928.60
$7.99
$1,016.92
$8.35
1.64%
R6
$1,000
$933.70
$2.60
$1,022.52
$2.72
0.53%
Advisor
$1,000
$933.40
$3.13
$1,021.97
$3.27
0.64%
Franklin
Gold
and
Precious
Metals
Fund
Financial
Highlights
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Six
Months
Ended
January
31,
2022
(unaudited)
Year
Ended
July
31,
2021
2020
2019
2018
2017
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$24.23
$28.04
$16.68
$13.56
$16.19
$24.06
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
0.12
0.04
(0.04)
(0.02)
(0.06)
(0.04)
Net
realized
and
unrealized
gains
(losses)
(1.74)
(1.20)
11.40
3.14
(2.51)
(6.45)
Total
from
investment
operations
........
(1.62)
(1.16)
11.36
3.12
(2.57)
(6.49)
Less
distributions
from:
Net
investment
income
..............
(2.06)
(2.65)
—
—
(0.06)
(1.38)
Net
asset
value,
end
of
period
..........
$20.55
$24.23
$28.04
$16.68
$13.56
$16.19
Total
return
c
.......................
(6.81)%
(3.80)%
68.05%
23.01%
(15.92)%
(26.85)%
Ratios
to
average
net
assets
d
Expenses
e
........................
0.89%
0.90%
f
0.93%
f
0.98%
f
1.02%
f
0.98%
f
Net
investment
income
(loss)
..........
1.03%
0.17%
(0.20)%
(0.15)%
(0.37)%
(0.24)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$842,759
$921,127
$938,555
$645,108
$587,294
$776,677
Portfolio
turnover
rate
................
7.92%
18.91%
17.00%
12.82%
8.36%
13.99%
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,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
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.
Semiannual
Report
11
a
Six
Months
Ended
January
31,
2022
(unaudited)
Year
Ended
July
31,
2021
2020
2019
2018
2017
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$21.71
$25.42
$15.24
$12.49
$14.96
$22.39
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
0.03
(0.13)
(0.16)
(0.11)
(0.15)
(0.17)
Net
realized
and
unrealized
gains
(losses)
(1.55)
(1.09)
10.34
2.86
(2.32)
(5.99)
Total
from
investment
operations
........
(1.52)
(1.22)
10.18
2.75
(2.47)
(6.16)
Less
distributions
from:
Net
investment
income
..............
(1.95)
(2.49)
—
—
—
(1.27)
Net
asset
value,
end
of
period
..........
$18.24
$21.71
$25.42
$15.24
$12.49
$14.96
Total
return
c
.......................
(7.14)%
(4.53)%
66.80%
22.02%
(16.51)%
(27.41)%
Ratios
to
average
net
assets
d
Expenses
e
........................
1.64%
1.65%
f
1.68%
f
1.73%
f
1.77%
f
1.73%
f
Net
investment
income
(loss)
..........
0.28%
(0.59)%
(0.94)%
(0.90)%
(1.12)%
(0.99)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$74,922
$93,615
$106,271
$75,129
$94,997
$137,487
Portfolio
turnover
rate
................
7.92%
18.91%
17.00%
12.82%
8.36%
13.99%
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,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Gold
and
Precious
Metals
Fund
Financial
Highlights
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
Six
Months
Ended
January
31,
2022
(unaudited)
Year
Ended
July
31,
2021
2020
2019
2018
2017
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$26.32
$30.20
$17.90
$14.50
$17.31
$25.58
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.16
0.13
0.03
0.04
0.01
0.04
Net
realized
and
unrealized
gains
(losses)
(1.88)
(1.28)
12.27
3.36
(2.68)
(6.87)
Total
from
investment
operations
........
(1.72)
(1.15)
12.30
3.40
(2.67)
(6.83)
Less
distributions
from:
Net
investment
income
..............
(2.11)
(2.73)
—
—
(0.14)
(1.44)
Net
asset
value,
end
of
period
..........
$22.49
$26.32
$30.20
$17.90
$14.50
$17.31
Total
return
c
.......................
(6.63)%
(3.46)%
68.66%
23.45%
(15.50)%
(26.53)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.70%
0.69%
0.72%
0.83%
0.79%
0.57%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.53%
0.56%
e
0.56%
e
0.58%
e
0.55%
e
0.52%
e
Net
investment
income
...............
1.29%
0.49%
0.17%
0.25%
0.10%
0.21%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$31,969
$25,458
$20,574
$10,808
$8,153
$4,635
Portfolio
turnover
rate
................
7.92%
18.91%
17.00%
12.82%
8.36%
13.99%
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
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
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.
Semiannual
Report
13
a
Six
Months
Ended
January
31,
2022
(unaudited)
Year
Ended
July
31,
2021
2020
2019
2018
2017
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$26.00
$29.88
$17.73
$14.38
$17.17
$25.38
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
0.16
0.11
0.01
0.01
(0.02)
—
c
Net
realized
and
unrealized
gains
(losses)
(1.86)
(1.28)
12.14
3.34
(2.67)
(6.81)
Total
from
investment
operations
........
(1.70)
(1.17)
12.15
3.35
(2.69)
(6.81)
Less
distributions
from:
Net
investment
income
..............
(2.10)
(2.71)
—
—
(0.10)
(1.40)
Net
asset
value,
end
of
period
..........
$22.20
$26.00
$29.88
$17.73
$14.38
$17.17
Total
return
d
.......................
(6.66)%
(3.59)%
68.47%
23.30%
(15.70)%
(26.69)%
Ratios
to
average
net
assets
e
Expenses
f
.........................
0.64%
0.65%
g
0.68%
g
0.73%
g
0.77%
g
0.73%
g
Net
investment
income
(loss)
..........
1.28%
0.41%
0.05%
0.10%
(0.12)%
0.01%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$279,494
$307,110
$280,317
$143,589
$130,812
$164,253
Portfolio
turnover
rate
................
7.92%
18.91%
17.00%
12.82%
8.36%
13.99%
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
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Gold
and
Precious
Metals
Fund
Statement
of
Investments
(unaudited),
January
31,
2022
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
a
Country
Shares
a
Value
a
Common
Stocks
99.1%
Copper
0.5%
a,b
Imperial
Metals
Corp.
..................................
Canada
2,065,330
$
5,118,236
a
Vizsla
Copper
Corp.
...................................
Canada
1,850,000
312,918
5,431,154
Diversified
Metals
&
Mining
12.8%
a
Aclara
Resources,
Inc.
.................................
United
Kingdom
444,972
437,586
a
Adventus
Mining
Corp.
.................................
Canada
2,000,000
1,258,752
a,c
Adventus
Mining
Corp.,
144A
............................
Canada
5,850,000
3,681,851
a
Arizona
Metals
Corp.
...................................
Canada
150,000
660,845
a,c
Arizona
Metals
Corp.,
144A
..............................
Canada
1,244,000
5,480,607
a
Azimut
Exploration,
Inc.
.................................
Canada
1,950,000
2,224,451
a
Bluestone
Resources,
Inc.
...............................
Canada
550,000
856,738
a,c
Bluestone
Resources,
Inc.,
144A
..........................
Canada
6,800,000
10,592,400
a
Chalice
Mining
Ltd.
....................................
Australia
5,159,965
28,592,352
a
Clean
Air
Metals,
Inc.
..................................
Canada
2,759,000
423,259
a,b
Clean
Air
Metals,
Inc.
..................................
Canada
3,956,600
606,984
a,b,c,d
Euro
Sun
Mining,
Inc.,
144A
.............................
Canada
10,000,000
1,691,448
a,d
G
Mining
Ventures
Corp.
................................
Canada
7,500,000
4,425,301
a,c,d
G
Mining
Ventures
Corp.,
144A
...........................
Canada
8,250,000
4,867,831
a,c
Ivanhoe
Mines
Ltd.,
144A
...............................
Canada
2,035,000
17,434,624
a
Ivanhoe
Mines
Ltd.,
A
..................................
Canada
1,465,000
12,551,215
a
Los
Cerros
Ltd.
.......................................
Australia
23,500,000
1,766,120
a
Matador
Mining
Ltd.
...................................
Australia
8,000,000
1,866,348
a,b
OreCorp
Ltd.
.........................................
Australia
4,200,000
2,203,681
a
Orla
Mining
Ltd.
......................................
Canada
4,080,713
13,419,385
a,c
Orla
Mining
Ltd.,
144A
..................................
Canada
2,000,000
6,576,981
a
Prime
Mining
Corp.
....................................
Canada
1,300,000
3,620,486
a,b
Prime
Mining
Corp.
....................................
Canada
2,200,000
6,126,977
a,e
Silver
Mountain
Resources,
Inc.
..........................
Canada
7,300,000
2,871,529
a,c,e,f
Silver
Mountain
Resources,
Inc.,
144A
.....................
Canada
7,300,000
2,871,529
a
Sunrise
Energy
Metals
Ltd.
..............................
Australia
1,359,999
1,668,118
a,b,d
Talisker
Resources
Ltd.
.................................
Canada
15,300,000
3,249,941
a
Vizsla
Silver
Corp.
.....................................
Canada
5,550,000
10,610,101
a
Western
Copper
&
Gold
Corp.
............................
Canada
930,000
1,382,818
a,b
Western
Copper
&
Gold
Corp.
............................
Canada
2,430,000
3,613,170
157,633,428
Environmental
&
Facilities
Services
0.0%
†
a,b
Clean
TeQ
Water
Ltd.
..................................
Australia
679,999
298,199
a
Gold
75.4%
Agnico
Eagle
Mines
Ltd.
................................
Canada
75,000
3,583,500
Alamos
Gold,
Inc.,
(CAD
Traded),
A
........................
Canada
2,528,316
17,245,299
Alamos
Gold,
Inc.,
(USD
Traded),
A
........................
Canada
1,969,500
13,451,685
b
AngloGold
Ashanti
Ltd.,
ADR
.............................
Tanzania
1,614,823
30,003,411
a,c
Argonaut
Gold,
Inc.,
144A
...............................
United
States
2,350,000
4,215,247
a
Artemis
Gold,
Inc.
.....................................
Canada
2,495,000
12,758,634
a,b,c,d
Ascot
Resources
Ltd.,
144A
.............................
Canada
23,788,750
18,902,240
a,c,d
Ascot
Resources
Ltd.,
144A
.............................
Canada
831,250
660,501
a
Auteco
Minerals
Ltd.
...................................
Australia
41,827,500
2,276,886
B2Gold
Corp.
........................................
Canada
7,863,694
28,334,292
a,d
Banyan
Gold
Corp.
....................................
Canada
14,667,629
4,096,458
Barrick
Gold
Corp.
....................................
Canada
2,964,383
56,767,934
a
Bellevue
Gold
Ltd.
.....................................
Australia
14,944,000
8,255,112
a,b
Belo
Sun
Mining
Corp.
.................................
Canada
3,500,000
1,652,112
a,c
Belo
Sun
Mining
Corp.,
144A
.............................
Canada
3,800,000
1,793,722
a
Black
Cat
Syndicate
Ltd.
................................
Australia
7,022,800
2,988,096
a
Breaker
Resources
NL
.................................
Australia
16,000,000
2,626,754
Centamin
plc
.........................................
Egypt
12,915,200
15,565,064
Franklin
Gold
and
Precious
Metals
Fund
Statement
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Gold
(continued)
Centerra
Gold,
Inc.
....................................
Kyrgyzstan
175,700
$
1,418,206
a,c
Centerra
Gold,
Inc.,
144A
...............................
Kyrgyzstan
2,893,400
23,354,798
a
Cerrado
Gold,
Inc.
.....................................
Canada
2,800,000
3,083,943
a
Dacian
Gold
Ltd.
......................................
Australia
38,755,556
4,840,384
Dundee
Precious
Metals,
Inc.
............................
Canada
2,907,415
17,086,295
a
Eldorado
Gold
Corp.
...................................
Turkey
1,848,724
16,187,789
a
Emerald
Resources
NL
.................................
Australia
17,220,000
13,025,836
Endeavour
Mining
plc
..................................
Burkina
Faso
2,791,114
62,185,783
a
Falcon
Metals
Ltd.
.....................................
Australia
8,225,414
2,500,431
a
Firefinch
Ltd.
.........................................
Australia
18,028,500
8,249,516
b
First
Mining
Gold
Corp.
.................................
Canada
7,500,000
1,652,112
a,b
Galiano
Gold,
Inc.
.....................................
Canada
9,264,362
6,268,076
a
Gascoyne
Resources
Ltd.
...............................
Australia
7,550,800
1,397,545
a,d,e
Geopacific
Resources
Ltd.
..............................
Australia
38,375,694
5,832,885
Gold
Fields
Ltd.
.......................................
South
Africa
1,074,800
11,519,069
a,b
Gold
Mountain
Mining
Corp.
.............................
Canada
2,900,000
2,851,861
a
Gold
Standard
Ventures
Corp.
............................
Canada
6,370,000
2,555,818
a
Great
Bear
Resources
Ltd.
..............................
Canada
920,000
20,504,760
a,d
HighGold
Mining,
Inc.
..................................
Canada
4,803,000
4,912,202
Hochschild
Mining
plc
..................................
Peru
3,238,520
4,538,312
a
i-80
Gold
Corp.
.......................................
Canada
2,015,000
4,216,741
a,b
Integra
Resources
Corp.,
(CAD
Traded)
....................
Canada
2,260,000
4,267,170
a
Integra
Resources
Corp.,
(USD
Traded)
....................
Canada
750,000
1,410,000
a
K92
Mining,
Inc.
......................................
Canada
1,000,000
5,003,540
Kirkland
Lake
Gold
Ltd.
.................................
Canada
529,123
19,931,091
a,b,d
Liberty
Gold
Corp.
.....................................
Canada
16,329,800
12,204,634
a,d
Lion
One
Metals
Ltd.
...................................
Canada
4,312,400
3,630,138
a,c,d
Lion
One
Metals
Ltd.,
144A
..............................
Canada
4,024,000
3,387,365
a,e,g
Lydian
International
Ltd.
................................
Jersey
6,375,000
—
a,e,g
Lydian
International
Ltd.,
144A
...........................
Jersey
25,250,000
—
a
Marathon
Gold
Corp.
...................................
Canada
3,459,000
7,728,393
a,b,c,d
Mawson
Gold
Ltd.,
144A
................................
Canada
18,100,000
1,993,549
c,d
Mineros
SA,
144A
.....................................
Colombia
4,115,000
3,496,342
a,b,d
Newcore
Gold
Ltd.
....................................
Canada
7,000,000
2,533,239
Newcrest
Mining
Ltd.
...................................
Australia
2,426,914
37,639,423
Newmont
Corp.
.......................................
United
States
794,614
48,606,538
a,b
Nighthawk
Gold
Corp.
..................................
Canada
3,261,000
1,847,156
Northern
Star
Resources
Ltd.
............................
Australia
1,172,254
6,985,556
a,d
O3
Mining,
Inc.
.......................................
Canada
4,150,000
7,215,404
a
OceanaGold
Corp.
....................................
Australia
9,363,488
14,438,232
a
Ora
Banda
Mining
Ltd.
.................................
Australia
20,423,529
827,183
a,c
Osisko
Development
Corp.,
144A
.........................
Canada
1,475,000
5,036,189
Osisko
Gold
Royalties
Ltd.
..............................
Canada
275,000
3,037,527
a
Osisko
Mining,
Inc.
....................................
Canada
8,700,000
30,047,203
a
Pantoro
Ltd.
.........................................
Australia
42,200,000
9,078,374
a,b
Perpetua
Resources
Corp.
..............................
United
States
192,090
704,224
a,c
Perpetua
Resources
Corp.,
144A
.........................
United
States
403,000
1,477,445
a
Perseus
Mining
Ltd.
...................................
Australia
37,308,141
38,990,775
a
Predictive
Discovery
Ltd.
................................
Australia
51,650,000
8,073,971
a
Pretium
Resources,
Inc.
................................
Canada
745,000
10,116,199
a,b
Probe
Metals,
Inc.
.....................................
Canada
4,105,000
6,200,614
a,d
Red
5
Ltd.
...........................................
Australia
183,805,372
35,236,534
a,d
RTG
Mining,
Inc.
......................................
Australia
1,769,918
139,243
a,c,d
RTG
Mining,
Inc.,
144A
.................................
Australia
2,397,790
188,639
a,d
RTG
Mining,
Inc.,
CDI
..................................
Australia
64,487,582
4,558,950
a,d
Saturn
Metals
Ltd.
.....................................
Australia
7,783,333
2,118,434
a
Skeena
Resources
Ltd.
.................................
Canada
1,973,550
21,736,842
a
SolGold
plc,
(CAD
Traded)
..............................
Australia
13,650,000
4,671,348
Franklin
Gold
and
Precious
Metals
Fund
Statement
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Gold
(continued)
a,b
SolGold
plc,
(GBP
Traded)
..............................
Australia
10,000,000
$
3,592,213
SSR
Mining,
Inc.
......................................
Canada
2,426,555
39,955,783
a
St.
Augustine
Gold
and
Copper
Ltd.,
(CAD
Traded)
............
United
States
5,309,336
396,811
a,c
St.
Augustine
Gold
and
Copper
Ltd.,
(CAD
Traded),
144A
.......
United
States
16,383,333
1,224,464
a,c
St.
Augustine
Gold
and
Copper
Ltd.,
(USD
Traded),
144A
.......
United
States
10,000,000
747,384
St.
Barbara
Ltd.
.......................................
Australia
9,008,021
7,891,724
a
Superior
Gold,
Inc.
....................................
Canada
6,150,000
3,628,747
a,d
Thesis
Gold,
Inc.
......................................
Canada
2,300,000
5,446,464
a
Torex
Gold
Resources,
Inc.
..............................
Canada
191,100
1,873,264
a,c
Torex
Gold
Resources,
Inc.,
144A
.........................
Canada
1,450,000
14,213,673
a,d
Troilus
Gold
Corp.
.....................................
Canada
8,900,000
4,901,267
a
Tulla
Resources
plc,
CDI
................................
Australia
10,300,000
4,004,872
a
Victoria
Gold
Corp.
....................................
Canada
1,100,000
12,132,798
a
West
African
Resources
Ltd.
.............................
Australia
13,264,984
10,515,808
a
Westhaven
Gold
Corp.
.................................
Canada
4,200,000
1,222,563
a
Wiluna
Mining
Corp.
Ltd.
................................
Australia
9,755,000
7,310,075
926,974,683
Precious
Metals
&
Minerals
8.2%
Anglo
American
Platinum
Ltd.
............................
South
Africa
105,556
12,791,320
a,d,e,g
Aurion
Resources
Ltd.,
144A
.............................
Canada
4,500,000
3,949,270
a,d
Benchmark
Metals,
Inc.
.................................
Canada
9,790,300
7,702,226
a,d,e,g
Benchmark
Metals,
Inc.
.................................
Canada
1,500,000
1,115,556
a
Eastern
Platinum
Ltd.
..................................
Canada
5,184,204
1,101,200
Impala
Platinum
Holdings
Ltd.
............................
South
Africa
1,370,000
21,123,920
Impala
Platinum
Holdings
Ltd.,
ADR
.......................
South
Africa
1,206,100
18,610,123
a
Millennial
Precious
Metals
Corp.
..........................
Canada
4,868,700
1,627,879
a
Northam
Platinum
Holdings
Ltd.
..........................
South
Africa
1,089,019
14,382,354
a,d
Platinum
Group
Metals
Ltd.,
(CAD
Traded)
..................
South
Africa
2,052,787
3,310,686
a,c,d
Platinum
Group
Metals
Ltd.,
(CAD
Traded),
144A
.............
South
Africa
97,760
157,665
a,d
Platinum
Group
Metals
Ltd.,
(USD
Traded)
..................
South
Africa
4,041,856
6,507,388
a,c,d
Platinum
Group
Metals
Ltd.,
(USD
Traded),
144A
.............
South
Africa
36,628
59,073
Royal
Bafokeng
Platinum
Ltd.
............................
South
Africa
558,527
5,928,735
a,d
Sable
Resources
Ltd.
..................................
Canada
12,000,000
1,699,316
100,066,711
Silver
2.2%
a
Gatos
Silver,
Inc.
......................................
United
States
482,157
1,499,508
a
GoGold
Resources,
Inc.
................................
Canada
8,962,858
19,038,405
Pan
American
Silver
Corp.
..............................
Canada
133,021
2,878,930
a
Silver
Tiger
Metals,
Inc.
.................................
Canada
7,500,000
4,012,273
27,429,116
Total
Common
Stocks
(Cost
$942,805,332)
.....................................
1,217,833,291
Rights
a
a
Rights
0.1%
Silver
0.1%
a
Pan
American
Silver
Corp.,
CVR
,
2/22/29
...................
Canada
1,850,600
1,313,926
Total
Rights
(Cost
$856,771)
..................................................
1,313,926
Warrants
a
a
a
Warrants
0.3%
Diversified
Metals
&
Mining
0.2%
a,c,e
Adventus
Mining
Corp.,
144A,
7/26/23
......................
Canada
1,000,000
—
a,e,g
Clean
Air
Metals,
Inc.,
144A,
2/11/22
.......................
Canada
1,900,000
298
a,e,g
Clean
Air
Metals,
Inc.,
144A,
2/23/23
.......................
Canada
1,379,500
27,081
Franklin
Gold
and
Precious
Metals
Fund
Statement
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
a
a
Country
Warrants
a
Value
a
a
a
a
a
a
Warrants
(continued)
Diversified
Metals
&
Mining
(continued)
a,d,e,g
Euro
Sun
Mining,
Inc.,
144A,
6/05/23
.......................
Canada
5,000,000
$
31,060
a,d,e,g
G
Mining
Ventures
Corp.,
144A,
5/19/22
....................
Canada
4,125,000
144,727
a,d,e,g
G
Mining
Ventures
Corp.,
144A,
8/20/24
....................
Canada
3,750,000
79,425
a,e,g
Prime
Mining
Corp.,
144A,
4/27/24
........................
Canada
650,000
416,766
a,e,g
Vizsla
Silver
Corp.,
144A,
7/30/22
.........................
Canada
3,350,000
1,184,257
a,c
Vizsla
Silver
Corp.,
144A,
12/03/22
........................
Canada
850,000
324,325
2,207,939
Gold
0.1%
a,c,e
First
Mining
Gold
Corp.,
144A,
8/26/22
.....................
Canada
3,750,000
623
a,d,e,g
Mawson
Gold
Ltd.,
144A,
5/20/22
.........................
Canada
3,850,000
775
a,c,e
Nighthawk
Gold
Corp.,
144A,
6/08/23
......................
Canada
1,630,500
39,496
a,d,e,g
O3
Mining,
Inc.,
144A,
6/18/22
...........................
Canada
850,000
24,275
a
Osisko
Development
Corp.,
12/01/23
......................
Canada
737,500
319,113
a,e,g
Osisko
Mining,
Inc.,
144A,
12/23/21
.......................
Canada
2,125,000
378,061
a,e,g
Probe
Metals,
Inc.,
144A,
11/24/22
........................
Canada
1,700,000
369,977
a
Treasury
Metals,
Inc.,
8/07/23
............................
Canada
3,500
303
a,c,d
Troilus
Gold
Corp.,
144A,
6/30/23
.........................
Canada
1,000,000
102,274
a
Westhaven
Gold
Corp.,
3/03/23
...........................
Canada
2,100,000
194,123
1,429,020
Precious
Metals
&
Minerals
0.0%
†
a,d,e,g
Benchmark
Metals,
Inc.,
144A,
12/09/23
....................
Canada
750,000
75,486
Total
Warrants
(Cost
$909)
...................................................
3,712,445
Principal
Amount
*
Convertible
Bonds
0.2%
Precious
Metals
&
Minerals
0.2%
d,e
Platinum
Group
Metals
Ltd.,
Sub.
Note,
6.875%,
7/01/22
........
South
Africa
3,000,000
2,849,557
Total
Convertible
Bonds
(Cost
$3,000,000)
.....................................
2,849,557
Total
Long
Term
Investments
(Cost
$946,663,012)
...............................
1,225,709,219
a
Short
Term
Investments
1.1%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
0.5%
h,i
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.....
United
States
6,293,296
6,293,296
Total
Money
Market
Funds
(Cost
$6,293,296)
...................................
6,293,296
j
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.6%
Money
Market
Funds
0.5%
h,i
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.....
United
States
6,254,000
6,254,000
Franklin
Gold
and
Precious
Metals
Fund
Statement
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
Short
Term
Investments
(continued)
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Repurchase
Agreements
0.1%
k
Joint
Repurchase
Agreement,
BofA
Securities,
Inc.,
0.04%,
2/01/22
(Maturity
Value
$1,545,148)
Collateralized
by
U.S.
Treasury
Note,
1.5%,
1/31/27
(valued
at
$1,576,049)
........................................
1,545,146
$
1,545,146
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$7,799,146)
.................................................................
7,799,146
Total
Short
Term
Investments
(Cost
$14,092,442
)
................................
14,092,442
a
Total
Investments
(Cost
$960,755,454)
100.8%
..................................
$1,239,801,661
Other
Assets,
less
Liabilities
(0.8)%
...........................................
(10,657,121
)
Net
Assets
100.0%
...........................................................
$1,229,144,540
See
Abbreviations
on
page
36
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
A
portion
or
all
of
the
security
is
on
loan
at
January
31,
2022.
See
Note
1(e).
c
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
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.
Regulation
S
securities
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
January
31,
2022,
the
aggregate
value
of
these
securities
was
$134,572,285,
representing
10.9%
of
net
assets.
d
See
Note
11
regarding
holdings
of
5%
voting
securities.
e
Fair
valued
using
significant
unobservable
inputs.
See
Note
13
regarding
fair
value
measurements.
f
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(b).
g
See
Note
10
regarding
restricted
securities.
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(e)
regarding
securities
on
loan.
k
See
Note
1(d)
regarding
joint
repurchase
agreement.
Franklin
Gold
and
Precious
Metals
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
January
31,
2022
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
Franklin
Gold
and
Precious
Metals
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$725,628,773
Cost
-
Non-controlled
affiliates
(Note
3
f
and
11
)
...................................................
233,581,535
Cost
-
Unaffiliated
repurchase
agreements
......................................................
1,545,146
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$6,925,377)
.................................
$1,062,211,451
Value
-
Non-controlled
affiliates
(Note
3
f
and
11
)
..................................................
176,045,064
Value
-
Unaffiliated
repurchase
agreements
......................................................
1,545,146
Foreign
currency,
at
value
(cost
$863,380)
........................................................
862,323
Receivables:
Investment
securities
sold
...................................................................
930,842
Capital
shares
sold
........................................................................
4,011,897
Dividends
and
interest
.....................................................................
184,806
Total
assets
..........................................................................
1,245,791,529
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
5,745,831
Capital
shares
redeemed
...................................................................
1,752,668
Management
fees
.........................................................................
485,105
Distribution
fees
..........................................................................
252,455
Transfer
agent
fees
........................................................................
270,778
Trustees'
fees
and
expenses
.................................................................
22,990
Payable
upon
return
of
securities
loaned
(Note
1
e
)
..................................................
7,799,146
Accrued
expenses
and
other
liabilities
...........................................................
318,016
Total
liabilities
.........................................................................
16,646,989
Net
assets,
at
value
.................................................................
$1,229,144,540
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$1,823,434,242
Total
distributable
earnings
(losses)
.............................................................
(594,289,702)
Net
assets,
at
value
.................................................................
$1,229,144,540
Franklin
Gold
and
Precious
Metals
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
January
31,
2022
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
Franklin
Gold
and
Precious
Metals
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$842,759,216
Shares
outstanding
........................................................................
41,009,435
Net
asset
value
per
share
a
..................................................................
$20.55
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94.50%)
................................
$21.75
Class
C:
Net
assets,
at
value
.......................................................................
$74,922,194
Shares
outstanding
........................................................................
4,108,404
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$18.24
Class
R6:
Net
assets,
at
value
.......................................................................
$31,969,367
Shares
outstanding
........................................................................
1,421,349
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$22.49
Advisor
Class:
Net
assets,
at
value
.......................................................................
$279,493,763
Shares
outstanding
........................................................................
12,588,692
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$22.20
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
six
months
ended
January
31,
2022
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
21
Franklin
Gold
and
Precious
Metals
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$1,118,750)
Unaffiliated
issuers:
Paid
in
cash
............................................................................
$10,635,930
Non-cash
dividends
......................................................................
1,250,879
Non-controlled
affiliates
(Note
3
f
and
11
)
........................................................
62,269
Interest:
Non-controlled
affiliates
(Note
3
f
and
11
)
........................................................
103,125
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
.....................................................
321,166
Non-controlled
affiliates
(Note
3
f
)
.............................................................
531
Total
investment
income
...................................................................
12,373,900
Expenses:
Management
fees
(Note
3
a
)
...................................................................
2,985,461
Distribution
fees:
(Note
3c
)
    Class
A
................................................................................
1,111,165
    Class
C
................................................................................
402,858
Transfer
agent
fees:
(Note
3e
)
    Class
A
................................................................................
608,248
    Class
C
................................................................................
55,184
    Class
R6
...............................................................................
27,523
    Advisor
Class
............................................................................
199,738
Custodian
fees
(Note
4
)
......................................................................
38,012
Reports
to
shareholders
fees
..................................................................
63,107
Registration
and
filing
fees
....................................................................
74,652
Professional
fees
...........................................................................
58,663
Trustees'
fees
and
expenses
..................................................................
24,199
Other
....................................................................................
18,984
Total
expenses
.........................................................................
5,667,794
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
..............................................
(29,559)
Net
expenses
.........................................................................
5,638,235
Net
investment
income
................................................................
6,735,665
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
35,460,165
Non-controlled
affiliates
(Note
3
f
and
11
)
......................................................
1,293,539
Foreign
currency
transactions
................................................................
(14,353)
Net
realized
gain
(loss)
..................................................................
36,739,351
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(108,474,406)
Non-controlled
affiliates
(Note
3
f
and
11
)
......................................................
(23,921,536)
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
..............................
(4,106)
Net
change
in
unrealized
appreciation
(depreciation)
............................................
(132,400,048)
Net
realized
and
unrealized
gain
(loss)
............................................................
(95,660,697)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$(88,925,032)
Franklin
Gold
and
Precious
Metals
Fund
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
Franklin
Gold
and
Precious
Metals
Fund
Six
Months
Ended
January
31,
2022
(unaudited)
Year
Ended
July
31,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$6,735,665
$2,247,644
Net
realized
gain
(loss)
.................................................
36,739,351
80,980,538
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(132,400,048)
(130,503,589)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
(88,925,032)
(47,275,407)
Distributions
to
shareholders:
Class
A
.............................................................
(77,236,319)
(91,536,537)
Class
C
.............................................................
(7,493,603)
(10,260,302)
Class
R6
............................................................
(2,559,248)
(1,886,753)
Advisor
Class
........................................................
(24,898,226)
(25,940,782)
Total
distributions
to
shareholders
..........................................
(112,187,396)
(129,624,374)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
58,825,910
102,536,385
Class
C
.............................................................
(4,754,573)
2,796,697
Class
R6
............................................................
11,122,047
7,932,977
Advisor
Class
........................................................
17,753,488
65,227,845
Total
capital
share
transactions
............................................
82,946,872
178,493,904
Net
increase
(decrease)
in
net
assets
...................................
(118,165,556)
1,594,123
Net
assets:
Beginning
of
period
.....................................................
1,347,310,096
1,345,715,973
End
of
period
..........................................................
$1,229,144,540
$1,347,310,096
Franklin
Gold
and
Precious
Metals
Fund
23
franklintempleton.com
Semiannual
Report
Notes
to
Financial
Statements
(unaudited)
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.
Effective
August
2,
2021,
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Prior
to
August
2,
2021,
Class
C
shares
converted
to
Class
A
shares
after
a
10-year
holding
period.
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
Franklin
Gold
and
Precious
Metals
Fund
Notes
to
Financial
Statements
(unaudited)
24
franklintempleton.com
Semiannual
Report
value
of
the
Fund's
portfolio
securities
as
determined
at
the
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
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
At
January
31,
2022,
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
(referred
to
as
“market
level
fair
value”).
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.
Securities
Purchased
on
a
Delayed
Delivery
Basis
The
Fund
purchases
securities
on
a
delayed
delivery
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Fund
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
it
may
sell
the
securities
before
the
settlement
date.
c.
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.
d.
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
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation 
(continued)
Franklin
Gold
and
Precious
Metals
Fund
Notes
to
Financial
Statements
(unaudited)
25
franklintempleton.com
Semiannual
Report
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
period
end,
as
indicated
in
the
Statement
of
Investments,
had
been
entered
into
on
January
31,
2022.
e.
Securities
Lending
The
Fund
participates
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
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.
Any
cash
collateral
received
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.
Additionally,
at
January
31,
2022,
the
Fund
held
$99,983
in
U.S.
Government
and
Agency
securities
as
collateral.
These
securities
are
held
as
collateral
in
segregated
accounts
with
the
Fund’s
custodian.
The
Fund
cannot
repledge
or
resell
these
securities
held
as
collateral.
As
such,
the
non-
cash
collateral
is
excluded
from
the
Statement
of
Assets
and
Liabilities.
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 any
cash 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.
f.
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
January
31,
2022,
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. 
g.
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
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Joint
Repurchase
Agreement
(continued)
Franklin
Gold
and
Precious
Metals
Fund
Notes
to
Financial
Statements
(unaudited)
26
franklintempleton.com
Semiannual
Report
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.
h.
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.
i.
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
January
31,
2022,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund’s
shares
were
as
follows:
Six
Months
Ended
January
31,
2022
Year
Ended
July
31,
2021
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
9,224,522
$207,840,273
30,882,746
$785,177,178
Shares
issued
in
reinvestment
of
distributions
..........
3,065,533
63,947,021
3,140,730
73,775,753
Shares
redeemed
...............................
(9,301,773)
(212,961,384)
(29,480,089)
(756,416,546)
Net
increase
(decrease)
..........................
2,988,282
$58,825,910
4,543,387
$102,536,385
Class
C
Shares:
Shares
sold
...................................
434,828
$8,716,778
1,354,195
$31,227,110
Shares
issued
in
reinvestment
of
distributions
..........
401,227
7,434,732
480,163
10,155,453
Shares
redeemed
a
..............................
(1,040,213)
(20,906,083)
(1,701,635)
(38,585,866)
Net
increase
(decrease)
..........................
(204,158)
$(4,754,573)
132,723
$2,796,697
Class
R6
Shares:
Shares
sold
...................................
656,171
$16,224,374
845,313
$23,304,103
Shares
issued
in
reinvestment
of
distributions
..........
111,171
2,536,911
72,633
1,849,233
Shares
redeemed
...............................
(313,194)
(7,639,238)
(632,002)
(17,220,359)
Net
increase
(decrease)
..........................
454,148
$11,122,047
285,944
$7,932,977
1.
Organization
and
Significant
Accounting
Policies
(continued)
g.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
(continued)
Franklin
Gold
and
Precious
Metals
Fund
Notes
to
Financial
Statements
(unaudited)
27
franklintempleton.com
Semiannual
Report
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:
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
period
ended
January
31,
2022,
the
annualized
gross
effective
investment
management
fee
rate
was
0.463%
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
Six
Months
Ended
January
31,
2022
Year
Ended
July
31,
2021
Shares
Amount
Shares
Amount
Advisor
Class
Shares:
Shares
sold
...................................
2,564,009
$61,510,408
5,595,597
$150,447,493
Shares
issued
in
reinvestment
of
distributions
..........
999,907
22,527,905
903,757
22,747,555
Shares
redeemed
...............................
(2,785,090)
(66,284,825)
(4,071,933)
(107,967,203)
Net
increase
(decrease)
..........................
778,826
$17,753,488
2,427,421
$65,227,845
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
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
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
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Gold
and
Precious
Metals
Fund
Notes
to
Financial
Statements
(unaudited)
28
franklintempleton.com
Semiannual
Report
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
period:
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
period
ended
January
31,
2022,
the
Fund
paid
transfer
agent
fees
of
$890,693,
of
which
$431,788
was
retained
by
Investor
Services.
f.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
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
period
ended
January
31,
2022,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
Class
A
....................................................................................
0.25%
Class
C
....................................................................................
1.00%
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$65,735
CDSC
retained
..............................................................................
$96,499
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Gold
and
Precious
Metals
Fund
Notes
to
Financial
Statements
(unaudited)
29
franklintempleton.com
Semiannual
Report
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,
202
2
.
h.
Other
Affiliated
Transactions
During
the
year
ended
July
31,
2021,
affiliated
parties
reimbursed
the
Fund
$27,191
for
losses
resulting
from
a
NAV
error.
This
reimbursement
is
reflected
in
capital
share
transactions
in
the
Statement
s
of
Changes
in
Net
A
ssets
.
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
period
ended
January
31,
2022,
there
were
no
credits
earned. 
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
July
31,
2021,
the
capital
loss
carryforwards
were
as
follows:
    aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Franklin
Gold
and
Precious
Metals
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
$
16,845,034
$
89,942,546
$
(100,494,284)
$
—
$
—
$
6,293,296
6,293,296
$
392
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
$6,641,000
$40,108,000
$(40,495,000)
$—
$—
$6,254,000
6,254,000
$531
Total
Affiliated
Securities
...
$23,486,034
$130,050,546
$(140,989,284)
$—
$—
$12,547,296
$923
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$3,241,431
Long
term
................................................................................
692,263,807
Total
capital
loss
carryforwards
...............................................................
$695,505,238
3.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Gold
and
Precious
Metals
Fund
Notes
to
Financial
Statements
(unaudited)
30
franklintempleton.com
Semiannual
Report
At
January
31,
2022,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
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
period
ended
January
31,
2022,
aggregated
$100,387,513
and
$111,815,647,
respectively.
At
January
31,
2022,
in
connection
with
securities
lending
transactions,
the
Fund
loaned
equity
investments
and
received
$7,799,146
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.
Political
and
financial
uncertainty
in
many
foreign
regions
may
increase
market
volatility
and
the
economic
risk
of
investing
in
foreign
securities.
In
addition,
certain
foreign
securities
may
not
be
as
liquid
as
U.S.
securities.
8.
Geopolitical
Risk
On
February
24,
2022,
Russia
engaged
in
military
actions
in
the
sovereign
territory
of
Ukraine.
The
current
political
and
financial
uncertainty
surrounding
Russia
and
Ukraine
may
increase
market
volatility
and
the
economic
risk
of
investing
in
securities
in
these
countries
and
may
also
cause
uncertainty
for
the
global
economy
and
broader
financial
markets.
The
ultimate
fallout
and
long-term
impact
from
these
events
are
not
known.
The
Fund
will
continue
to
assess
the
impact
on
valuations
and
liquidity
and
will
take
any
potential
actions
needed
in
accordance
with
procedures
approved
by
Board.
9.
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.
Cost
of
investments
..........................................................................
$1,182,187,187
Unrealized
appreciation
........................................................................
$472,838,001
Unrealized
depreciation
........................................................................
(415,223,527)
Net
unrealized
appreciation
(depreciation)
..........................................................
$57,614,474
5.
Income
Taxes
(continued)
Franklin
Gold
and
Precious
Metals
Fund
Notes
to
Financial
Statements
(unaudited)
31
franklintempleton.com
Semiannual
Report
10.
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
January
31,
2022,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
11.
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.
Additionally,
as
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
companies’
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
company.
During
the
period
ended
January
31,
2022,
investments
in
“affiliated
companies”
were
as
follows:
Shares
/
Warrants
Issuer
Acquisition
Date
Cost
Value
Franklin
Gold
and
Precious
Metals
Fund
4,500,000
Aurion
Resources
Ltd.,
144A
...................
11/18/21
$
3,214,158
$
3,949,270
1,500,000
a
Benchmark
Metals,
Inc.
.......................
11/29/21
1,175,917
1,115,556
750,000
a
Benchmark
Metals,
Inc.,
144A,
12/09/23
...........
12/10/21
—
75,486
1,900,000
b
Clean
Air
Metals,
Inc.,
144A,
2/11/22
.............
5/15/20
—
298
1,379,500
b
Clean
Air
Metals,
Inc.,
144A,
2/23/23
.............
2/24/21
—
27,081
5,000,000
c
Euro
Sun
Mining,
Inc.,
144A,
6/05/23
.............
6/09/20
—
31,060
4,125,000
d
G
Mining
Ventures
Corp.,
144A,
5/19/22
...........
11/27/20
—
144,727
3,750,000
d
G
Mining
Ventures
Corp.,
144A,
8/20/24
...........
9/16/21
—
79,425
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
—
3,850,000
e
Mawson
Gold
Ltd.,
144A,
5/20/22
................
5/22/20
—
775
850,000
f
O3
Mining,
Inc.,
144A,
6/18/22
..................
6/23/20
—
24,275
2,125,000
g
Osisko
Mining,
Inc.,
144A,
12/23/21
..............
6/24/20
—
378,061
650,000
h
Prime
Mining
Corp.,
144A,
4/27/24
...............
4/28/21
—
416,766
1,700,000
i
Probe
Metals,
Inc.,
144A,
11/24/22
...............
11/23/20
-
11/24/20
—
369,977
3,350,000
j
Vizsla
Silver
Corp.,
144A,
7/30/22
...............
8/03/20
—
1,184,257
Total
Restricted
Securities
(Value
is
0.6%
of
Net
Assets)
..............
$21,238,245
$7,797,014
a
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$7,702,226
as
of
January
31,
2022.
b
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$1,030,243
as
of
January
31,
2022.
c
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$1,691,448
as
of
January
31,
2022.
d
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$9,293,132
as
of
January
31,
2022.
e
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$1,993,549
as
of
January
31,
2022.
f
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$7,215,404
as
of
January
31,
2022.
g
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$30,047,203
as
of
January
31,
2022.
h
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$9,747,463
as
of
January
31,
2022.
i
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$6,200,614
as
of
January
31,
2022.
j
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$10,934,426
as
of
January
31,
2022.
Franklin
Gold
and
Precious
Metals
Fund
Notes
to
Financial
Statements
(unaudited)
32
franklintempleton.com
Semiannual
Report
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares/Principal
Amount
*
Held
at
End
of
Period
Investment
Income
Franklin
Gold
a
nd
Precious
Metals
Fund
Non-Controlled
Affiliates
Dividends
Ascot
Resources
Ltd.,
144A
...........
$
25,045,192
$
—
$
(1,069,059)
$
382,405
$
(4,795,797)
$
19,562,741
24,620,000
$
—
Aurion
Resources
Ltd.,
144A
...........
—
3,214,158
—
—
735,112
3,949,270
4,500,000
—
Banyan
Gold
Corp
....
2,853,423
577,514
—
—
665,521
4,096,458
14,667,629
—
Benchmark
Metals,
Inc.
7,106,058
3,295,143
a
—
—
(1,583,419)
8,817,782
11,290,300
—
Benchmark
Metals,
Inc.,
144A,
12/09/23
....
—
—
a
—
—
75,486
75,486
750,000
—
Euro
Sun
Mining,
Inc.,
144A
...........
3,044,872
—
—
—
(1,353,424)
1,691,448
10,000,000
—
Euro
Sun
Mining,
Inc.,
144A,
6/05/23
.....
273,474
—
—
—
(242,414)
31,060
5,000,000
—
G
Mining
Ventures
Corp
5,618,990
5,688,850
a
—
—
(2,014,708)
9,293,132
15,750,000
—
G
Mining
Ventures
Corp.,
144A,
5/19/22
.....
825,159
—
—
—
(680,432)
144,727
4,125,000
—
G
Mining
Ventures
Corp.,
144A,
8/20/24
.....
—
—
a
—
—
79,425
79,425
3,750,000
—
Geopacific
Resources
Ltd.
9,389,974
—
—
—
(3,557,089)
5,832,885
38,375,694
—
HighGold
Mining,
Inc.
..
5,620,104
646,857
—
—
(1,354,759)
4,912,202
4,803,000
—
Liberty
Gold
Corp
....
14,132,012
2,154,233
—
—
(4,081,611)
12,204,634
16,329,800
—
Lion
One
Metals
Ltd.
..
4,353,866
—
—
—
(723,728)
3,630,138
4,312,400
—
Lion
One
Metals
Ltd.,
144A
...........
4,062,692
—
—
—
(675,327)
3,387,365
4,024,000
—
Mawson
Gold
Ltd.,
144A
1,449,920
1,218,274
—
—
(674,645)
1,993,549
18,100,000
—
Mawson
Gold
Ltd.,
144A,
5/20/22
..........
25,142
—
—
—
(24,367)
775
3,850,000
—
Mineros
SA,
144A
....
—
3,656,436
—
—
(160,094)
3,496,342
4,115,000
61,877
Newcore
Gold
Ltd
....
3,421,474
—
—
—
(888,235)
2,533,239
7,000,000
—
O3
Mining,
Inc.
......
7,079,712
95,575
—
—
40,117
7,215,404
4,150,000
—
O3
Mining,
Inc.,
144A,
6/18/22
..........
73,046
—
—
—
(48,771)
24,275
850,000
—
Platinum
Group
Metals
Ltd.,
(CAD
Traded)
..
6,382,062
—
—
—
(3,071,376)
3,310,686
2,052,787
—
Platinum
Group
Metals
Ltd.,
(CAD
Traded),
144A
...........
303,933
—
—
—
(146,268)
157,665
97,760
—
Platinum
Group
Metals
Ltd.,
(USD
Traded)
..
12,610,591
—
—
—
(6,103,203)
6,507,388
4,041,856
—
Platinum
Group
Metals
Ltd.,
(USD
Traded),
144A
...........
113,875
—
—
—
(54,802)
59,073
36,628
—
Red
5
Ltd.
.........
27,605,650
—
(1,914,093)
911,134
8,633,843
35,236,534
183,805,372
—
11.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
(continued)
Franklin
Gold
and
Precious
Metals
Fund
Notes
to
Financial
Statements
(unaudited)
33
franklintempleton.com
Semiannual
Report
12.
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
$2.675
billion
(Global
Credit
Facility)
which
matured
on
February
4,
2022.
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.
Effective
February
4,
2022,
the
Borrowers
renewed
the
Global
Credit
Facility
for
a
one-year
term,
maturing
February
3,
2023,
for
a
total
of
$2.675
billion.
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
period
ended
January
31,
2022,
the Fund
did
not
use
the
Global
Credit
Facility.
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares/Principal
Amount*
Held
at
End
of
Period
Investment
Income
Franklin
Gold
and
Precious
Metals
Fund
(continued)
Non-Controlled
Affiliates
RTG
Mining,
Inc.
.....
$
219,822
$
—
$
—
$
—
$
(80,579)
$
139,243
1,769,918
$
—
RTG
Mining,
Inc.,
144A
.
297,802
—
—
—
(109,163)
188,639
2,397,790
—
RTG
Mining,
Inc.,
CDI
..
5,579,182
882,938
a
—
—
(1,903,170)
4,558,950
64,487,582
—
Sable
Resources
Ltd
..
2,029,587
—
—
—
(330,271)
1,699,316
12,000,000
—
Saturn
Metals
Ltd.
....
2,215,282
541,994
a
—
—
(638,842)
2,118,434
7,783,333
—
Superior
Gold,
Inc.
....
3,400,240
—
—
—
—
—
b
—
—
Talisker
Resources
Ltd.
.
3,555,289
—
—
—
(305,348)
3,249,941
15,300,000
—
Thesis
Gold,
Inc.
.....
2,414,263
—
—
—
3,032,201
5,446,464
2,300,000
—
Troilus
Gold
Corp.
....
6,418,269
—
—
—
(1,517,002)
4,901,267
8,900,000
—
Troilus
Gold
Corp.,
144A,
6/30/23
..........
136,218
—
—
—
(33,944)
102,274
1,000,000
—
Interest
Platinum
Group
Metals
Ltd.,
Sub.
Note,
6.875%,
7/01/22
..........
2,880,010
—
—
—
(30,453)
2,849,557
3,000,000
103,125
Total
Affiliated
Securities
(Value
is
13.3%
of
Net
Assets)
..........
$170,537,185
$21,971,972
$(2,983,152)
$
1,293,539
$
(23,921,536)
$163,497,768
$165,002
*
In
U.S.
dollars
unless
otherwise
indicated.
a
May
include
accretion,
amortization,
partnership
adjustments,
and/or
corporate
actions.
b
As
of
January
31,
2022,
no
longer
an
affiliate.
11.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
(continued)
Franklin
Gold
and
Precious
Metals
Fund
Notes
to
Financial
Statements
(unaudited)
34
franklintempleton.com
Semiannual
Report
13.
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)
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
January
31,
2022,
in
valuing
the
Fund’s
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Gold
and
Precious
Metals
Fund
Assets:
Investments
in
Securities:
a
Common
Stocks
:
Copper
..............................
$
5,431,154
$
—
$
—
$
5,431,154
Diversified
Metals
&
Mining
...............
116,686,647
35,203,723
5,743,058
157,633,428
Environmental
&
Facilities
Services
.........
—
298,199
—
298,199
Gold
................................
702,330,385
218,811,413
5,832,885
b
926,974,683
Precious
Metals
&
Minerals
...............
61,086,645
33,915,240
5,064,826
100,066,711
Silver
...............................
27,429,116
—
—
27,429,116
Rights
................................
1,313,926
—
—
1,313,926
Warrants
:
Diversified
Metals
&
Mining
...............
324,325
—
1,883,614
b
2,207,939
Gold
................................
615,813
—
813,207
1,429,020
Precious
Metals
&
Minerals
...............
—
—
75,486
75,486
Convertible
Bonds
.......................
—
—
2,849,557
2,849,557
Short
Term
Investments
...................
12,547,296
1,545,146
—
14,092,442
Total
Investments
in
Securities
...........
$927,765,307
$289,773,721
c
$22,262,633
$1,239,801,661
a
For
detailed
categories,
see
the
accompanying
Statement
of
Investments.
b
Includes
securities
determined
to
have
no
value
at
January
31,
2022.
c
Includes
foreign
securities
valued
at
$285,587,005
,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
Franklin
Gold
and
Precious
Metals
Fund
Notes
to
Financial
Statements
(unaudited)
35
franklintempleton.com
Semiannual
Report
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
period.
At
January
31,
2022,
the
reconciliation
is
as
follows:
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
January
31,
2022,
are
as
follows:
Balance
at
Beginning
of
Period
Purchases
a
Sales
b
Transfer
Into
Level
3
c
Transfer
Out
of
Level
3
d
Net
Accretion
(
Amortiza
-
tion
)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a          
a
a
a
a
a
a
a
a
a
Franklin
Gold
and
Precious
Metals
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Diversified
Metals
&
Mining
.........
$
7,662,175
$
5,727,288
$
—
$
—
$
(6,840,026)
$
—
$
—
$
(806,379)
$
5,743,058
$
15,770
Gold
............
2,853,423
e
—
—
9,389,974
(2,683,818)
—
—
(3,726,694)
5,832,885
e
(3,557,089)
Precious
Metals
&
Minerals
........
2,029,587
4,390,076
—
—
(2,971,401)
—
—
1,616,564
5,064,826
674,750
Warrants
:
Diversified
Metals
&
Mining
.........
3,375,274
e
—
e
—
e
—
(270,049)
—
—
(1,221,611)
1,883,614
e
(1,189,184)
Gold
............
858,116
e
—
—
—
—
—
—
(44,909)
813,207
(44,909)
Precious
Metals
&
Minerals
........
—
—
e
—
—
—
—
—
75,486
75,486
75,486
Convertible
Bonds
:
Precious
Metals
&
Minerals
........
—
—
—
2,880,010
—
—
—
(30,453)
2,849,557
(30,453)
Total
Investments
in
Securities
.
$16,778,575
$10,117,364
$—
$12,269,984
$(12,765,294)
$
—
$
—
(4,137,996)
$22,262,633
$
(4,055,629)
a
Purchases
include
all
purchases
of
securities
and
securities
received
in
corporate
actions.
b
Sales
include
all
sales
of
securities,
maturities,
paydowns
and
securities
tendered
in
corporate
actions.
c
Transferred
into
level
3
as
a
result
of
the
unavailability
of
a
quoted
market
price
in
an
active
market
for
identical
securities
or
as
a
result
of
the
unreliability
of
the
foreign
exchange
rate
and
other
significant
observable
valuation
inputs.
May
include
amounts
related
to
a
corporate
action.
d
Transfers
out
of
level
3
were
as
a
result
of
changes
in
the
levels
of
observable
liquidity
and
the
improved
reliability
of
a
significant
input.
e
Includes
securities
determined
to
have
no
value.
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
Impact
to
Fair
Value
if
Input
Increases
a
Franklin
Gold
and
Precious
Metals
Fund
Assets:
Investments
in
Securities:
Common
Stocks:
Precious
Metals
&
Minerals
....
$3,949,270
Market
comparables
Discount
for
lack
of
marketability
6.3%
Decrease
All
Other
Investments
18,949,270
b,c
Total
.......................
$22,262,633
13.
Fair
Value
Measurements
(continued)
Franklin
Gold
and
Precious
Metals
Fund
Notes
to
Financial
Statements
(unaudited)
36
franklintempleton.com
Semiannual
Report
14.
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.
In
January
2021,
the
FASB
issued
ASU
No.
2021-01,
with
further
amendments
to
Topic
848.
The
amendments
in
the
ASUs
provide
optional
temporary
accounting
recognition
and 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
for
certain
LIBOR
settings
and
2023
for
the
remainder. The
ASUs
are
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
these
ASUs
will
not
have
a
material
impact
on
the
financial
statements. 
15.
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
other
than
those
already
disclosed
in
the
financial
statements.
Abbreviations
a
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.
b
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.
c
Includes
securities
determined
to
have
no
value
at
January
31,
2022.
Cu
r
rency
CAD
Canadian
Dollar
GBP
British
Pound
USD
United
States
Dollar
Selected
Portfolio
ADR
American
Depositary
Receipt
CDI
CREST
Depository
Interest
CVR
Contingent
Value
Right
13.
Fair
Value
Measurements
(continued)
Franklin
Gold
and
Precious
Metals
Fund
Shareholder
Information
37
franklintempleton.com
Semiannual
Report
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,
or
receive
notice
of
the
availability
of,
the
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
an
annual
updated
summary
prospectus
(detail
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
(to
the
extent
received
by
mail)
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
S
03/22
©
2022
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.
Semiannual
Report
and
Shareholder
Letter
Franklin
Gold
and
Precious
Metals
Fund
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Distributors,
LLC
(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.      
N/A
 
 
 
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.
There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
 
 
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company                                          N/A
 
 
Item 13. Exhibits.
 
(a)(1) 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 Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
 
 
 
 
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 March 29, 2022
 
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 March 29, 2022
 
 
By S\Christopher Kings________________________
     Christopher Kings
     Chief Financial Officer, Chief Accounting Officer and Treasurer
Date March 29, 2022