N-CSR 1 g07578nvcsr.htm FORM N-CSR nvcsr
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21698
The Gabelli Global Gold, Natural Resources & Income Trust
 
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
 
(Name and address of agent for service)
registrant’s telephone number, including area code: 1-800-422-3554
Date of fiscal year end: December 31
Date of reporting period: December 31, 2010
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
 
 

 


 

Item 1. Reports to Stockholders.
     The Report to Shareholders is attached herewith.
The Gabelli Global Gold, Natural Resources & Income Trust
Annual Report — December 31, 2010
             
  (PHOTO)   (PHOTO)   (PHOTO)  
  Caesar Bryan   Barbara G. Marcin, CFA   Vincent Roche  
To Our Shareholders,
     The Sarbanes-Oxley Act requires a fund’s principal executive and financial officers to certify the entire contents of the semi-annual and annual shareholder reports in a filing with the Securities and Exchange Commission (“SEC”) on Form N-CSR. This certification would cover the portfolio managers’ commentary and subjective opinions if they are attached to or a part of the financial statements. Many of these comments and opinions would be difficult or impossible to certify.
     Because we do not want our portfolio managers to eliminate their opinions and/or restrict their commentary to historical facts, we have separated their commentary from the financial statements and investment portfolio and have sent it to you separately. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com.
     Enclosed are the audited financial statements including the investment portfolio as of December 31, 2010.
Investment Performance
     For the year ended December 31, 2010, The Gabelli Global Gold, Natural Resources & Income Trust’s (the “Fund”), net asset value (“NAV”) total return was 27.3% and the total return for the Fund’s publicly traded shares was 30.8%, compared with gains of 5.9% and 34.7% for the Chicago Board Options Exchange Index (“CBOE”) S&P 500 Buy/Write Index and the Philadelphia Gold & Silver Index, respectively.
     On December 31, 2010, the Fund’s NAV per share was $18.25, while the price of the Fund’s publicly traded shares closed at $19.27 on the NYSE Amex.
     In line with its primary investment objective — to provide a high level of current income, the Fund employed a derivatives strategy utilizing call options. The Fund earned short-term gains on premiums received from writing call options, primarily on the equity securities held in its portfolio. For 2010, this option strategy enabled the Fund to outperform the CBOE S&P 500 Buy/Write Index benchmark.
         
  Sincerely yours,   
  (GRAPHIC)    
  Bruce N. Alpert   
  President   
 
February 25, 2011
Comparative Results
Average Annual Returns through December 31, 2010 (a) (Unaudited)
                                         
                                    Since  
                                    Inception  
    Quarter     1 Year     3 Year     5 Year     (03/31/05)  
Gabelli Global Gold, Natural Resources & Income Trust
                                       
NAV Total Return (b)
    10.50 %     27.25 %     (5.19 )%     5.80 %     8.70 %
Investment Total Return (c)
    13.10       30.77       (3.48 )     6.90       8.59  
CBOE S&P 500 Buy/Write Index
    5.71       5.86       (1.66 )     2.81       3.11  
Philadelphia Gold & Silver Index
    15.04       34.67       9.34       12.09       16.59  
Amex Energy Select Sector Index
    22.24       22.01       (3.05 )     8.11       10.21  
Barclays Capital Government/Corporate Bond Index
    (2.11 )     6.61       5.58       5.53       5.33  
 
(a)   Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are sold, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The CBOE S&P 500 Buy/Write Index is an unmanaged benchmark index designed to reflect the return on a portfolio that consists of a long position in the stocks in the S&P 500 Index and a short position in a S&P 500 (SPX) call option. The Philadelphia Gold & Silver Index is an unmanaged indicator of stock market performance of large North American gold and silver companies, while the Amex Energy Select Sector Index is an unmanaged indicator of stock market performance of large U.S. companies involved in the development or production of energy products. The Barclays Capital Government/Corporate Bond Index is an unmanaged market value weighted index that tracks the total return performance of fixed rate, publicly placed, dollar denominated obligations. Dividends and interest income are considered reinvested. You cannot invest directly in an index.
 
(b)   Total returns and average annual returns reflect changes in the NAV per share and reinvestment of distributions at NAV on the ex-dividend date and are net of expenses. Since inception return is based on an initial NAV of $19.06.
 
(c)   Total returns and average annual returns reflect changes in closing market values on the NYSE Amex and reinvestment of distributions.Since inception return is based on an initial offering price of $20.00.

 


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
Summary of Portfolio Holdings (Unaudited)
The following table presents portfolio holdings as a percent of total investments as of December 31, 2010:
         
Long Positions        
Metals and Mining
    54.0 %
Energy and Energy Services
    35.7 %
Exchange Traded Funds
    0.2 %
U.S. Government Obligations
    10.1 %
 
     
 
    100.0 %
 
     
         
Short Positions        
Call Options Written
    (4.9 )%
Put Options Written
    (0.1 )%
 
     
 
    (5.0 )%
 
     
     The Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, the last of which was filed for the quarter ended September 30, 2010. Shareholders may obtain this information at www.gabelli.com or by calling the Fund at 800-GABELLI (800-422-3554). The Fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Proxy Voting
     The Fund files Form N-PX with its complete proxy voting record for the twelve months ended June 30th, no later than August 31st of each year. A description of the Fund’s proxy voting policies, procedures, and how the Fund voted proxies relating to portfolio securities is available without charge, upon request, by (i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC’s website at www.sec.gov.

2


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS
December 31, 2010
                         
                    Market  
Shares         Cost     Value  
       
COMMON STOCKS86.7%
           
       
Energy and Energy Services — 34.9%
               
  140,000    
Anadarko Petroleum Corp.
  $ 9,277,800     $ 10,662,400  
  72,000    
Apache Corp.
    7,227,143       8,584,560  
  286,325    
Baker Hughes Inc. (a)
    14,812,750       16,369,200  
  325,000    
BG Group plc
    5,393,127       6,566,883  
  300,900    
BP plc, ADR (a)
    15,743,782       13,290,753  
  55,500    
Chesapeake Energy Corp. (a)
    2,643,829       1,438,005  
  65,200    
Chevron Corp. (a)
    4,779,945       5,949,500  
  307,692    
Comanche Energy Inc.† (b)(c)(d)
    1,849,998       0  
  170,000    
ConocoPhillips (a)
    9,989,803       11,577,000  
  470,000    
Denbury Resources Inc.†
    9,028,700       8,972,300  
  238,000    
Devon Energy Corp. (a)
    14,716,342       18,685,380  
  640,000    
El Paso Corp.
    6,617,358       8,806,400  
  100,000    
EOG Resources Inc.
    8,989,600       9,141,000  
  153,980    
Exxon Mobil Corp. (a)
    9,620,707       11,259,018  
  65,000    
Galp Energia SGPS SA, Cl. B
    1,545,027       1,245,573  
  605,000    
Halliburton Co. (a)
    18,772,628       24,702,150  
  245,000    
Imperial Oil Ltd.
    9,999,558       9,999,095  
  270,000    
Marathon Oil Corp. (a)
    8,916,238       9,998,100  
  265,000    
Murphy Oil Corp. (a)
    15,627,090       19,755,750  
  320,000    
Nabors Industries Ltd.† (a)
    7,491,816       7,507,200  
  100,000    
National Oilwell Varco Inc.
    6,541,608       6,725,000  
  410,000    
Nexen Inc.
    8,775,052       9,389,000  
  424,100    
Noble Corp. (a)
    14,155,988       15,170,057  
  150,000    
Occidental Petroleum Corp.
    14,155,200       14,715,000  
  250,000    
Petrohawk Energy Corp.†
    4,519,175       4,562,500  
  412,000    
Petroleo Brasileiro SA, ADR (a)
    16,401,236       15,590,080  
  330,000    
Rowan Companies Inc.† (a)
    10,086,657       11,520,300  
  168,000    
Royal Dutch Shell plc, Cl. A
    5,222,330       5,601,308  
  100,000    
Sasol Ltd., ADR (a)
    4,387,742       5,205,000  
  60,000    
Schlumberger Ltd.
    4,553,394       5,010,000  
  138,400    
Statoil ASA, ADR (a)
    3,798,461       3,289,768  
  634,600    
Suncor Energy Inc. (a)
    21,574,358       24,298,834  
  419,000    
Tesoro Corp.† (a)
    6,120,992       7,768,260  
  450,000    
The Williams Companies Inc. (a)
    10,783,420       11,124,000  
  265,000    
Total SA, ADR
    13,643,387       14,172,200  
  208,200    
Transocean Ltd.† (a)
    15,592,488       14,471,982  
  380,000    
Tullow Oil plc
    7,244,745       7,470,843  
  1,000    
Ultra Petroleum Corp.†
    41,605       47,770  
  301,100    
Valero Energy Corp. (a)
    6,794,884       6,961,432  
  687,000    
Weatherford International Ltd.† (a)
    14,243,896       15,663,600  
       
 
           
       
 
    371,679,859       403,267,201  
       
 
           
       
Exchange Traded Funds0.2%
           
  73,000    
United States Oil Fund LP†
    3,017,601       2,847,000  
       
 
           
       
Metals and Mining51.6%
           
  469,000    
Agnico-Eagle Mines Ltd. (a)
    33,706,437       35,972,300  
  393,000    
Anglo American plc
    18,728,599       20,437,342  
  633,500    
AngloGold Ashanti Ltd., ADR (a)
    25,567,149       31,187,205  
  0 (e)  
Antofagasta plc
    1       1  
  636,000    
Barrick Gold Corp. (a)
    26,382,771       33,822,480  
  117,000    
BHP Billiton Ltd., ADR (a)
    8,213,512       10,871,640  
  770,000    
Centamin Egypt Ltd.†
    1,332,962       2,152,871  
  180,000    
Compania de Minas Buenaventura SA, ADR
  $ 8,783,912     $ 8,812,800  
  700,000    
Consolidated Thompson Iron Mines Ltd.†
    3,608,248       9,919,541  
  83,000    
Detour Gold Corp.†
    1,325,850       2,436,659  
  1,000,000    
Duluth Metals Ltd.†
    2,404,020       2,916,625  
  700,000    
Eldorado Gold Corp.
    10,065,568       13,024,238  
  900,000    
Equinox Minerals Ltd.†
    4,477,808       5,530,524  
  175,000    
Franco-Nevada Corp.
    4,784,483       5,853,867  
  168,731    
Freeport-McMoRan Copper & Gold Inc. (a)
    14,572,558       20,262,906  
  658,500    
Fresnillo plc
    8,279,435       17,124,691  
  410,000    
Gem Diamonds Ltd.†
    1,370,512       1,612,449  
  2,191,500    
Gold Fields Ltd., ADR (a)
    32,267,410       39,731,895  
  550,000    
Goldcorp Inc. (a)
    23,038,526       25,289,000  
  1,105,500    
Harmony Gold Mining Co. Ltd., ADR (a)
    12,140,792       13,862,970  
  1,779,700    
Hochschild Mining plc
    10,118,158       17,758,148  
  308,000    
HudBay Minerals Inc.
    3,302,084       5,566,489  
  195,000    
Hummingbird Resources plc†
    510,798       506,197  
  285,000    
IAMGOLD Corp.
    4,188,117       5,073,000  
  412,000    
Impala Platinum Holdings Ltd.
    9,868,055       14,569,946  
  293,240    
Ivanhoe Mines Ltd.† (a)
    3,461,471       6,721,061  
  255,000    
Keegan Resources Inc.†
    1,405,590       2,256,864  
  200,000    
Kingsgate Consolidated Ltd.
    2,078,652       2,225,608  
  1,833,800    
Kinross Gold Corp., New York (a)
    31,915,346       34,768,848  
  3,592    
Kinross Gold Corp., Toronto
    68,647       68,314  
  450,000    
Lundin Mining Corp., OTC†
    2,847,046       3,285,729  
  250,600    
Lundin Mining Corp., Toronto† (a)
    2,134,634       1,834,392  
  221,000    
MAG Silver Corp.†
    1,434,528       2,753,887  
  684,725    
Newcrest Mining Ltd.
    17,476,881       28,321,562  
  539,500    
Newmont Mining Corp. (a)
    30,244,577       33,141,485  
  150,000    
Northern Dynasty Minerals Ltd.†
    1,372,940       2,143,500  
  165,000    
Osisko Mining Corp.†
    1,343,879       2,409,534  
  492,616    
OZ Minerals Ltd.
    517,615       866,616  
  12,537,555    
PanAust Ltd.†
    4,275,272       11,412,814  
  61,300    
Peabody Energy Corp. (a)
    3,058,958       3,921,974  
  420,000    
Randgold Resources Ltd., ADR (a)
    35,182,990       34,578,600  
  3,851,298    
Red 5 Ltd.†
    634,005       787,820  
  1,984,000    
Red 5 Ltd., ASE†
    327,978       405,846  
  293,600    
Rio Tinto plc, ADR (a)
    19,945,648       21,039,376  
  845,000    
Romarco Minerals Inc.†
    1,328,572       1,963,140  
  321,700    
Royal Gold Inc.
    14,687,553       17,574,471  
  621,250    
Sandfire Resources NL†
    3,129,444       5,153,201  
  500,000    
SEMAFO Inc.†
    3,145,726       5,405,813  
  100,015    
Vale SA, ADR (a)
    2,329,707       3,457,519  
  207,000    
Witwatersrand Consolidated Gold Resources Ltd.†
    1,645,433       1,728,587  
  372,305    
Xstrata plc
    5,630,322       8,738,775  
  1,200,000    
Yamana Gold Inc. (a)
    13,116,113       15,360,000  
       
 
           
       
 
    473,777,292       596,621,120  
       
 
           
       
 
               
       
TOTAL COMMON STOCKS
    848,474,752       1,002,735,321  
       
 
           
See accompanying notes to financial statements.

3


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2010
                         
                    Market  
Shares         Cost     Value  
       
CONVERTIBLE PREFERRED STOCKS — 0.4%
               
       
Metals and Mining — 0.4%
               
  10,000    
Vale Capital II, 6.750%, Cv. Pfd., Ser. VALE
  $ 500,000     $ 965,100  
  35,000    
Vale Capital II, 6.750%, Cv. Pfd., Ser. VALP
    1,750,000       3,390,100  
       
 
           
 
       
TOTAL CONVERTIBLE PREFERRED STOCKS
    2,250,000       4,355,200  
       
 
           
       
 
               
       
RIGHTS — 0.0%
               
       
Metals and Mining — 0.0%
               
  293,240    
Ivanhoe Mines Ltd., expire 01/26/11†
    0       410,536  
       
 
           
       
 
               
       
WARRANTS — 0.1%
               
       
Energy and Energy Services — 0.0%
               
  34,091    
Comanche Energy Inc., Cl. A, expire 06/18/13† (b)(c)(d)
    93,750       0  
  36,197    
Comanche Energy Inc., Cl. B, expire 06/18/13† (b)(c)(d)
    93,750       0  
  82,965    
Comanche Energy Inc., Cl. C, expire 06/18/13† (b)(c)(d)
    187,501       0  
       
 
           
       
 
    375,001       0  
       
 
           
       
Metals and Mining — 0.1%
               
  62,500    
Franco-Nevada Corp., expire 03/13/12†
    400,744       339,435  
  87,500    
Franco-Nevada Corp., expire 06/16/17†
    0       642,412  
       
 
           
       
 
    400,744       981,847  
       
 
           
 
       
TOTAL WARRANTS
    775,745       981,847  
       
 
           
                         
Principal
Amount
             
       
CONVERTIBLE CORPORATE BONDS — 1.2%
               
       
Energy and Energy Services — 0.3%
               
$ 1,500,000    
Chesapeake Energy Corp., Cv., 2.250%, 12/15/38
    681,351       1,175,625  
  2,000,000    
Nabors Industries Inc., Cv., 0.940%, 05/15/11
    1,927,668       1,997,500  
       
 
           
       
 
    2,609,019       3,173,125  
       
 
           
       
Metals and Mining — 0.9%
               
  2,800,000    
Detour Gold Corp., Cv., 5.500%, 11/30/17 (b)(d)(f)
    2,800,000       2,639,700  
  5,000,000    
Newmont Mining Corp., Ser. B, Cv., 1.625%, 07/15/17
    3,775,982       7,293,750  
  725,000 (g)  
Wesdome Gold Mines Ltd., Deb. Cv., 7.000%, 05/31/12 (b)(d)(f)
    687,458       780,197  
       
 
           
       
 
    7,263,440       10,713,647  
       
 
           
 
       
TOTAL CONVERTIBLE CORPORATE BONDS
    9,872,459       13,886,772  
       
 
           
       
 
               
       
CORPORATE BONDS — 1.5%
               
       
Energy and Energy Services — 0.5%
               
  4,471,462    
Comanche Energy Inc., PIK, 15.500%, 06/13/13 (b)(c)(d)
    4,361,248       43,047  
  2,500,000    
Compagnie Generale de Geophysique-Veritas, 7.500%, 05/15/15
    2,353,075       2,556,250  
500,000    
Tesoro Corp., 9.750%, 06/01/19
  482,773     556,250  
  2,500,000    
Weatherford International Ltd., 9.625%, 03/01/19
    2,862,951       3,212,765  
       
 
           
       
 
    10,060,047       6,368,312  
       
 
           
       
Metals and Mining — 1.0%
               
  2,000,000    
Freeport-McMoRan Copper & Gold Inc., 8.250%, 04/01/15
    1,702,229       2,109,378  
  4,000,000    
United States Steel Corp., 6.050%, 06/01/17
    2,979,972       3,965,000  
  5,000,000    
Xstrata Canada Corp., 7.250%, 07/15/12
    4,917,659       5,369,970  
       
 
           
       
 
    9,599,860       11,444,348  
       
 
           
 
       
TOTAL CORPORATE BONDS
    19,659,907       17,812,660  
       
 
           
       
 
               
       
U.S. GOVERNMENT OBLIGATIONS — 10.1%
           
  116,147,000    
U.S. Treasury Bills, 0.105% to 0.200%††, 01/13/11 to 07/28/11 (a)
    116,104,141       116,110,099  
       
 
           
       
 
               
 
TOTAL INVESTMENTS — 100.0%
  $ 997,137,004       1,156,292,435  
       
 
             
       
 
               
 
CALL OPTIONS WRITTEN
(Premiums received $34,741,307)
            (56,251,774 )
       
 
               
 
PUT OPTIONS WRITTEN
(Premiums received $6,446,636)
            (1,634,055 )
 
 
Other Assets and Liabilities (Net)
            20,839,293  
       
 
               
 
PREFERRED STOCK
(3,955,687 preferred shares outstanding)
            (98,892,175 )
       
 
             
       
 
               
 
NET ASSETS — COMMON STOCK
(55,911,850 common shares outstanding)
          $ 1,020,353,724  
       
 
             
       
 
               
 
NET ASSET VALUE PER COMMON SHARE
($1,020,353,724 ÷ 55,911,850 shares outstanding)
          $ 18.25  
       
 
             
                         
Number of         Expiration Date/     Market  
Contracts         Exercise Price     Value  
       
OPTIONS CONTRACTS WRITTEN (h) — (5.0)%
               
       
Call Options Written — (4.9)%
               
  1,300    
Agnico-Eagle Mines Ltd.
  Jan. 11/85   $ 45,500  
  2,750    
Agnico-Eagle Mines Ltd.
  Feb. 11/75     1,265,000  
  700    
Anadarko Petroleum Corp.
  Feb. 11/67.50     717,500  
  700    
Anadarko Petroleum Corp.
  Feb. 11/70     591,500  
  135    
Anglo American plc(i)
  Feb. 11/32     553,028  
  258    
Anglo American plc(i)
  Jun. 11/32     1,594,901  
  700    
AngloGold Ashanti Ltd., ADR
  Jan. 11/47     196,000  
  5,635    
AngloGold Ashanti Ltd., ADR
  Jan. 11/50     577,588  
  220    
Apache Corp.
  Jan. 11/100     446,600  
  500    
Apache Corp.
  Jan. 11/110     483,750  
  800    
Baker Hughes Inc.
  Jan. 11/49     662,000  
  2,063    
Baker Hughes Inc.
  Jan. 11/50     1,547,250  
  750    
Barrick Gold Corp.
  Jan. 11/45     618,750  
  4,250    
Barrick Gold Corp.
  Jan. 11/49     1,827,500  
  500    
Barrick Gold Corp.
  Apr. 11/49     300,000  
  325    
BG Group plc(i)
  Jun. 11/14     282,487  
See accompanying notes to financial statements.

4


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2010
                     
Number of         Expiration Date/   Market  
Contracts         Exercise Price   Value  
       
OPTION CONTRACTS WRITTEN (Continued)
           
       
Call Options Written (Continued)
           
  520    
BHP Billiton Ltd., ADR
  Feb. 11/100   $ 61,360  
  1,350    
BP plc, ADR
  Jan. 11/43     238,950  
  2    
Chevron Corp.
  Jan. 11/70     4,285  
  650    
Chevron Corp.
  Jan. 11/85     438,750  
  800    
Compania de Minas Buenaventura SA, ADR
  Mar. 11/46     392,000  
  1,000    
Compania de Minas Buenaventura SA, ADR
  Mar. 11/47     425,000  
  300    
ConocoPhillips
  Jan. 11/60     253,500  
  1,400    
ConocoPhillips
  Feb. 11/62.50     889,000  
  7,000    
Consolidated Thompson Iron Mines Ltd.(j)
  Jan. 11/11     2,235,241  
  4,700    
Denbury Resources Inc.
  Mar. 11/20     364,250  
  200    
Devon Energy Corp.
  Jan. 11/70     176,000  
  2,000    
Devon Energy Corp.
  Jan. 11/72.50     1,172,000  
  500    
Devon Energy Corp.
  Jan. 11/75     215,000  
  4,000    
El Paso Corp.
  Jan. 11/12.50     520,000  
  2,400    
El Paso Corp.
  Jan. 11/14     52,800  
  2,500    
Eldorado Gold Corp.(j)
  Feb. 11/19     187,318  
  4,500    
Eldorado Gold Corp.(j)
  Feb. 11/20     201,398  
  1,000    
EOG Resources Inc.
  Jul. 11/100     470,000  
  9,000    
Equinox Minerals Ltd.(j)
  Jan. 11/6     271,548  
  620    
Exxon Mobil Corp.
  Jan. 11/65     520,800  
  910    
Exxon Mobil Corp.
  Jan. 11/67.50     535,080  
  1,750    
Franco-Nevada Corp.(j)
  Jan. 11/36     11,440  
  500    
Freeport-McMoRan Copper & Gold Inc.
  Jan. 11/104     827,500  
  500    
Freeport-McMoRan Copper & Gold Inc.
  Jan. 11/109     598,750  
  600    
Freeport-McMoRan Copper & Gold Inc.
  Jan. 11/114     471,000  
  6,915    
Gold Fields Ltd., ADR
  Jan. 11/14     2,835,150  
  5,000    
Gold Fields Ltd., ADR
  Jan. 11/16     1,125,000  
  5,000    
Gold Fields Ltd., ADR
  Jan. 11/17.50     430,000  
  5,000    
Gold Fields Ltd., ADR
  Apr. 11/20     317,500  
  700    
Goldcorp Inc.
  Jan. 11/46     75,600  
  1,000    
Goldcorp Inc.
  Jan. 11/47     68,000  
  2,900    
Goldcorp Inc.
  Jan. 11/48     110,200  
  2,000    
Halliburton Co.
  Jan. 11/40     332,000  
  710    
Halliburton Co.
  Feb. 11/43     85,065  
  1,150    
Halliburton Co.
  Feb. 11/44     100,625  
  1,300    
Halliburton Co.
  Apr. 11/39     533,000  
  1,000    
Harmony Gold Mining Co. Ltd., ADR
  Jan. 11/10     250,000  
  5,000    
Harmony Gold Mining Co. Ltd., ADR
  Jan. 11/11     775,000  
  1,455    
Harmony Gold Mining Co. Ltd., ADR
  Feb. 11/13     72,750  
  3,080    
HudBay Minerals Inc.(j)
  Mar. 11/15     998,994  
  2,850    
IAMGOLD Corp.
  Jan. 11/20     21,375  
  2,450    
Imperial Oil Ltd.(j)
  Feb. 11/42     137,987  
  1,931    
Ivanhoe Mines Ltd.
  Mar. 11/22     482,750  
  1,000    
Ivanhoe Mines Ltd.
  Mar. 11/23     195,000  
  8,880    
Kinross Gold Corp.
  Jan. 11/20     213,120  
  9,494    
Kinross Gold Corp.
  Feb. 11/20     579,134  
  1,500    
Lundin Mining Corp.(j)
  Jan. 11/7     71,658  
  4,500    
Lundin Mining Corp.(j)
  Jul. 11/7     543,096  
  450    
Marathon Oil Corp.
  Jan. 11/34     148,050  
  450    
Marathon Oil Corp.
  Jan. 11/35     98,550  
  900    
Marathon Oil Corp.
  Jan. 11/36     131,400  
  900    
Marathon Oil Corp.
  Jan. 11/37     75,600  
  1,300    
Murphy Oil Corp.
  Jan. 11/65     1,267,500  
  1,350    
Murphy Oil Corp.
  Apr. 11/70     951,750  
  3,200    
Nabors Industries Ltd.
  Mar. 11/23     571,200  
  800    
National Oilwell Varco Inc.
  May 11/65     560,000  
  200    
National Oilwell Varco Inc.
  May 11/70     90,400  
  250    
Newcrest Mining Ltd.(k)
  Jun. 11/45     391,732  
  1,700    
Newmont Mining Corp.
  Jan. 11/62.50     187,000  
  420    
Newmont Mining Corp.
  Jan. 11/65     18,900  
  1,075    
Newmont Mining Corp.
  Jan. 11/67.50     23,650  
  900    
Newmont Mining Corp.
  Jan. 11/70     9,000  
  3,000    
Nexen Inc.
  Mar. 11/22.50     525,000  
  750    
Noble Corp.
  Mar. 11/36     138,750  
  600    
Noble Corp.
  Mar. 11/38     63,000  
  900    
Occidental Petroleum Corp.
  Feb. 11/90     855,000  
  300    
Occidental Petroleum Corp.
  May 11/95     251,250  
  300    
Occidental Petroleum Corp.
  May 11/100     168,000  
  313    
Peabody Energy Corp.
  Jun. 11/55     366,523  
  300    
Peabody Energy Corp.
  Jun. 11/60     256,500  
  2,500    
Petrohawk Energy Corp.
  Mar. 11/22.50     72,500  
  4,455    
Petroleo Brasileiro SA, ADR
  Jan. 11/38     409,860  
  800    
Randgold Resources Ltd., ADR
  Jan. 11/100     8,000  
  1,000    
Randgold Resources Ltd., ADR
  Mar. 11/100     84,000  
  1,164    
Rio Tinto plc, ADR
  Jan. 11/60     1,373,520  
  836    
Rio Tinto plc, ADR
  Jan. 11/67.50     413,820  
  936    
Rio Tinto plc, ADR
  Jan. 11/77.50     32,760  
  2,000    
Rowan Companies Inc.
  Jan. 11/27.50     1,490,000  
  700    
Rowan Companies Inc.
  Jan. 11/31     283,500  
  600    
Rowan Companies Inc.
  Apr. 11/34     186,000  
  168    
Royal Dutch Shell plc, Cl. A(i)
  Jun. 11/22     185,968  
  600    
Royal Gold Inc.
  Jan. 11/50     285,000  
  2,117    
Royal Gold Inc.
  Jan. 11/55     264,625  
  500    
Royal Gold Inc.
  Apr. 11/55     167,500  
  1,000    
Sasol Ltd., ADR
  Mar. 11/50     380,000  
  600    
Schlumberger Ltd.
  May 11/80     492,000  
  2,000    
Suncor Energy Inc.
  Jan. 11/35     690,000  
  2,765    
Suncor Energy Inc.
  Jan. 11/36     746,550  
  1,300    
Suncor Energy Inc.
  Mar. 11/36     464,100  
  571    
Tesoro Corp.
  Jan. 11/16     155,312  
  1,290    
Tesoro Corp.
  Jan. 11/17.50     176,730  
  1,000    
Tesoro Corp.
  Feb. 11/15     367,500  
  900    
Tesoro Corp.
  Feb. 11/16     251,100  
  429    
Tesoro Corp.
  Feb. 11/17     85,800  
  1,150    
The Williams Companies Inc.
  Feb. 11/26     74,750  
  1,150    
The Williams Companies Inc.
  Feb. 11/27     49,450  
  2,200    
The Williams Companies Inc.
  May 11/26     310,200  
  200    
Total SA, ADR
  May 11/55     46,000  
  800    
Total SA, ADR
  May 11/60     51,200  
  350    
Transocean Ltd.
  Jan. 11/70     57,750  
  800    
Transocean Ltd.
  Aug. 11/75     414,000  
  250    
Tullow Oil plc(i)
  Mar. 11/14     114,983  
  1,000    
Vale SA, ADR
  Jan. 11/33     194,000  
  3,011    
Valero Energy Corp.
  Jun. 11/21     993,630  
  2,955    
Weatherford International Ltd.
  Feb. 11/20     930,825  
  3,915    
Weatherford International Ltd.
  Feb. 11/21     959,175  
  150    
Xstrata plc(i)
  Mar. 11/13     599,859  
  150    
Xstrata plc(i)
  Mar. 11/14     429,724  
  4,000    
Yamana Gold Inc.
  Jan. 11/11     752,000  
  8,000    
Yamana Gold Inc.
  Jan. 11/12.50     464,000  
       
 
         
 
       
TOTAL CALL OPTIONS WRITTEN (Premiums received $34,741,307)
        56,251,774  
       
 
         
See accompanying notes to financial statements.

5


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2010
                     
Number of         Expiration Date/   Market  
Contracts         Exercise Price   Value  
       
OPTION CONTRACTS WRITTEN (Continued)
           
       
Put Options Written — (0.1)%
           
  1,000    
Agnico-Eagle Mines Ltd.
  May 11/70   $ 377,500  
  900    
AngloGold Ashanti Ltd., ADR
  Apr. 11/42     94,500  
  280    
Antofagasta plc(i)
  Mar. 11/12     48,566  
  125    
Apache Corp.
  Jan. 11/80     125  
  600    
Baker Hughes Inc.
  Apr. 11/40     22,500  
  1,000    
Barrick Gold Corp.
  Apr. 11/42     44,500  
  250    
BP plc, ADR
  Jan. 11/35     500  
  450    
Chesapeake Energy Corp.
  Jan. 11/17.50     900  
  400    
Chevron Corp.
  Jan. 11/65     1,600  
  300    
Devon Energy Corp.
  Jan. 11/65     1,050  
  220    
Diamond Offshore Drilling Inc.
  Jan. 11/66.50     35,200  
  500    
Eldorado Gold Corp.(j)
  May 11/15     22,126  
  230    
Exxon Mobil Corp.
  Jan. 11/65     1,380  
  500    
Freeport-McMoRan Copper & Gold Inc.
  Jan. 11/59     500  
  500    
Freeport-McMoRan Copper & Gold Inc.
  Jan. 11/64     1,500  
  700    
Goldcorp Inc.
  Apr. 11/39     53,550  
  1,000    
Halliburton Co.
  Jan. 11/25     2,000  
  850    
Halliburton Co.
  Apr. 11/30     33,150  
  1,750    
Harmony Gold Mining Co. Ltd., ADR
  Jan. 11/9     17,500  
  500    
IAMGOLD Corp.(j)
  May 11/15     33,440  
  1,000    
Ivanhoe Mines Ltd.
  Mar. 11/17     22,500  
  665    
Kinross Gold Corp.
  Jan. 11/15     1,995  
  1,500    
Kinross Gold Corp.
  May 11/15     60,000  
  350    
Oil Service HOLDRS (SM) Trust
  Jan. 11/99.10     2,450  
  330    
Oil Service HOLDRS (SM) Trust
  Jan. 12/104.10     191,400  
  500    
Petrohawk Energy Corp.
  Jan. 11/16     3,500  
  800    
Petroleo Brasileiro SA, ADR
  Jan. 11/33     6,400  
  500    
Randgold Resources Ltd., ADR
  Mar. 11/90     517,500  
  400    
Red Back Mining Inc.(j)
  Jan. 11/21     4,023  
  500    
Rio Tinto plc, ADR
  Jan. 11/40     5,000  
  500    
Rio Tinto plc, ADR
  Jan. 11/50     5,000  
  300    
Rowan Companies Inc.
  Apr. 11/27     12,750  
  400    
Royal Gold Inc.
  Jan. 11/45     4,000  
  500    
Transocean Ltd.
  Jan. 11/50     1,750  
  400    
Vale SA, ADR
  Jan. 11/22.50     400  
  600    
Weatherford International Ltd.
  Jan. 11/12.50     600  
  1,350    
Yamana Gold Inc.
  Jan. 11/9     2,700  
       
 
         
       
TOTAL PUT OPTIONS WRITTEN (Premiums received $6,446,636)
        1,634,055  
       
 
         
       
TOTAL OPTION CONTRACTS WRITTEN (Premiums received $41,187,943)
      $ (57,885,829 )
       
 
         
 
(a)   Securities, or a portion thereof, with a value of $340,604,184 were pledged as collateral for options written.
 
(b)   Security fair valued under procedures established by the Board of Trustees. The procedures may include reviewing available financial information about the company and reviewing the valuation of comparable securities and other factors on a regular basis. At December 31, 2010, the market value of fair valued securities amounted to $3,462,944 or 0.30% of total investments.
 
(c)   At December 31, 2010, the Fund held investments in restricted securities amounting to $43,047 or 0.00% of total investments, which were valued under methods approved by the Board of Trustees as follows:
                                 
Acquisition                            
Shares/                         12/31/10  
Principal         Acquisition     Acquisition     Carrying Value  
Amount     Issuer   Date     Cost     Per Unit  
  307,692    
Comanche Energy Inc.
    06/17/08     $ 1,849,998        
  34,091    
Comanche Energy Inc., Cl. A, Warrants expire 06/18/13
    06/17/08       93,750        
  36,197    
Comanche Energy Inc., Cl. B, Warrants expire 06/18/13
    06/17/08       93,750        
  82,965    
Comanche Energy Inc., Cl. C, Warrants expire 06/18/13
    06/17/08       187,501        
$ 4,471,462    
Comanche Energy Inc., PIK, 15.500%, 06/13/13
    06/17/08       4,246,462     $ 0.9627  
 
(d)   Illiquid security.
 
(e)   Amount represents less than 0.5 shares.
 
(f)   Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2010, the market value of Rule 144A securities amounted to $3,419,897 or 0.30% of total investments.
 
(g)   Principal amount denoted in Canadian dollars.
 
(h)   At December 31, 2010, the Fund has entered into over-the-counter Option Contracts Written with Pershing LLC and Morgan Stanley.
 
(i)   Exercise price denoted in British Pounds.
 
(j)   Exercise price denoted in Canadian dollars.
 
(k)   Exercise price denoted in Australian dollars.
 
  Non-income producing security.
 
††   Represents annualized yield at date of purchase.
 
ADR   American Depositary Receipt
 
PIK   Payment-in-kind
                 
    % of        
    Market     Market  
Geographic Diversification   Value     Value  
Long Positions
               
North America
    62.6 %   $ 723,578,493  
Europe
    19.1       221,294,795  
South Africa
    9.2       106,285,604  
Asia/Pacific
    5.4       62,197,979  
Latin America
    3.7       42,935,564  
 
           
Total Investments
    100.0 %   $ 1,156,292,435  
 
           
 
               
Short Positions
               
North America
    (3.3 )%   $ (38,719,273 )
Europe
    (0.8 )     (9,151,617 )
South Africa
    (0.6 )     (7,070,987 )
Latin America
    (0.2 )     (1,998,860 )
Africa/Middle East
    (0.1 )     (492,000 )
Asia/Pacific
    (0.0 )     (453,092 )
 
           
Total Investments
    (5.0 )%   $ (57,885,829 )
 
           
See accompanying notes to financial statements.

6


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010
         
Assets:
       
Investments, at value (cost $997,137,004)
  $ 1,156,292,435  
Foreign currency, at value (cost $20,312,012)
    20,347,479  
Deposit at brokers
    6,776,298  
Receivable for investments sold
    10,350,654  
Dividends and interest receivable
    698,700  
Deferred offering expense
    128,975  
Prepaid expense
    25,838  
 
     
Total Assets
    1,194,620,379  
 
     
Liabilities:
       
Call options written (premiums received $34,741,307)
    56,251,774  
Put options written (premiums received $6,446,636)
    1,634,055  
Payable to custodian
    7,322,096  
Payable for investments purchased
    8,783,912  
Distributions payable
    90,995  
Payable for investment advisory fees
    932,345  
Payable for payroll expenses
    33,518  
Payable for accounting fees
    7,500  
Other accrued expenses
    318,285  
 
     
Total Liabilities
    75,374,480  
 
     
Preferred Shares:
       
Series A Cumulative Preferred Shares (6.625%, $25 liquidation value, $0.001 par value, 4,000,000 shares authorized with 3,955,687 shares issued and outstanding)
    98,892,175  
 
     
Net Assets Attributable to Common Shareholders
  $ 1,020,353,724  
 
     
Net Assets Attributable to Common Shareholders Consist of:
       
Paid-in capital
  $ 902,984,240  
Accumulated distributions in excess of net investment income
    (11,301,561 )
Accumulated net realized loss on investments, securities sold short, written options, and foreign currency transactions
    (13,842,409 )
Net unrealized appreciation on investments
    159,155,431  
Net unrealized depreciation on written options
    (16,697,886 )
Net unrealized appreciation on foreign currency translations
    55,909  
 
     
Net Assets
  $ 1,020,353,724  
 
     
Net Asset Value per Common Share:
       
($1,020,353,724 ÷ 55,911,850 shares outstanding at $0.001 par value; unlimited number of shares authorized)
  $ 18.25  
 
     
STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010
         
Investment Income:
       
Dividends (net of foreign withholding taxes of $306,592)
  $ 9,084,250  
Interest
    3,393,394  
 
     
Total Investment Income
    12,477,644  
 
     
Expenses:
       
Investment advisory fees
    8,147,057  
Shareholder communications expenses
    383,296  
Legal and audit fees
    240,685  
Offering expense for issuance of common shares
    216,336  
Payroll expenses
    142,481  
Trustees’ fees
    105,322  
Custodian fees
    92,976  
Accounting fees
    45,000  
Shareholder services fees
    23,958  
Interest expense
    3,606  
Miscellaneous expenses
    118,351  
 
     
Total Expenses
    9,519,068  
 
     
Net Investment Income
    2,958,576  
 
     
Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, Written Options, and Foreign Currency:
       
Net realized gain on investments
    38,861,393  
Net realized loss on securities sold short
    (14,534 )
Net realized gain on written options
    22,614,885  
Net realized loss on foreign currency transactions
    (154,044 )
 
     
Net realized gain on investments, securities sold short, written options, and foreign currency transactions
    61,307,700  
 
     
Net change in unrealized appreciation/depreciation:
       
on investments
    151,960,129  
on written options
    (21,880,218 )
on foreign currency translations
    58,367  
 
     
Net change in unrealized appreciation/depreciation on investments, written options, and foreign currency translations
    130,138,278  
 
     
Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, Written Options, and Foreign Currency
    191,445,978  
 
     
Net Increase in Net Assets Resulting from Operations
    194,404,554  
 
     
Total Distributions to Preferred Shareholders
    (6,569,806 )
 
     
Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations
  $ 187,834,748  
 
     
See accompanying notes to financial statements.

7


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS
                 
    Year Ended     Year Ended  
    December 31, 2010     December 31, 2009  
Operations:
               
Net investment income
  $ 2,958,576     $ 4,477,578  
Net realized gain on investments, securities sold short, written options, and foreign currency transactions
    61,307,700       34,962,624  
Net change in unrealized appreciation on investments, swap contracts, written options, and foreign currency translations
    130,138,278       121,828,743  
 
           
Net Increase in Net Assets Resulting from Operations
    194,404,554       161,268,945  
 
           
Distributions to Preferred Shareholders:
               
Net investment income
    (1,205,775 )     (2,417,976 )
Net realized short-term gain
    (4,284,486 )     (2,540,474 )
Net realized long-term gain
    (1,079,545 )     (1,556,710 )
 
           
Total Distributions to Preferred Shareholders
    (6,569,806 )     (6,515,160 )
 
           
Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations
    187,834,748       154,753,785  
 
           
Distributions to Common Shareholders:
               
Net investment income
    (13,539,912 )     (5,972,068 )
Net realized short-term gain
    (48,111,445 )     (6,274,624 )
Net realized long-term gain
    (12,122,449 )     (3,844,859 )
Return of capital
          (22,238,654 )
 
           
Total Distributions to Common Shareholders
    (73,773,806 )     (38,330,205 )
 
           
Fund Share Transactions:
               
Net increase in net assets from common shares issued in offering
    375,431,472       207,850,594  
Net increase in net assets from common shares issued upon reinvestment of distributions
    9,706,848       6,768,233  
Net increase in net assets attributable to common shareholders from repurchase of preferred shares
          2,734  
 
           
Net Increase in Net Assets from Fund Share Transactions
    385,138,320       214,621,561  
 
           
Net Increase in Net Assets Attributable to Common Shareholders
    499,199,262       331,045,141  
Net Assets Attributable to Common Shareholders:
               
Beginning of period
    521,154,462       190,109,321  
 
           
End of period (including undistributed net investment income of $0 and $0, respectively)
  $ 1,020,353,724     $ 521,154,462  
 
           
See accompanying notes to financial statements.

8


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each period:
                                         
    Year Ended December 31,  
    2010     2009     2008     2007     2006  
Operating Performance:
                                       
Net asset value, beginning of period
  $ 15.91     $ 10.39     $ 29.48     $ 24.10     $ 21.99  
 
                             
Net investment income/(loss)
    0.17       0.12       0.10       (0.02 )     0.08  
Net realized and unrealized gain/(loss) on investments, swap contracts, securities sold short, written options, and foreign currency transactions
    3.61       7.06       (17.18 )     7.61       3.77  
 
                             
Total from investment operations
    3.78       7.18       (17.08 )     7.59       3.85  
 
                             
Distributions to Preferred Shareholders: (a)
                                       
Net investment income
    (0.03 )     (0.11 )     (0.08 )     (0.01 )      
Net realized gain
    (0.12 )     (0.18 )     (0.28 )     (0.07 )      
 
                             
 
Total distributions to preferred shareholders
    (0.15 )     (0.29 )     (0.36 )     (0.08 )      
 
                             
Distributions to Common Shareholders:
                                       
Net investment income
    (0.31 )     (0.26 )     (0.13 )     (0.15 )      
Net realized gain
    (1.37 )     (0.45 )     (0.48 )     (1.78 )     (1.74 )
Return of capital
          (0.97 )     (1.07 )            
 
                             
Total distributions to common shareholders
    (1.68 )     (1.68 )     (1.68 )     (1.93 )     (1.74 )
 
                             
Fund Share Transactions:
                                       
Increase in net asset value from common share transactions
    0.39       0.31       0.01       0.00 (d)      
Increase in net asset value from repurchases of preferred shares
          0.00 (d)     0.01              
Offering costs for preferred shares charged to paid-in capital
                0.01       (0.20 )      
 
                             
Total fund share transactions
    0.39       0.31       0.03       (0.20 )      
 
                             
Net Asset Value, End of Period
  $ 18.25     $ 15.91     $ 10.39     $ 29.48     $ 24.10  
 
                             
NAV total return †
    27.25 %     74.36 %     (61.59 )%     31.47 %     18.29 %
 
                             
Market value, end of period
  $ 19.27     $ 16.34     $ 13.10     $ 29.15     $ 24.60  
 
                             
Investment total return ††
    30.77 %     40.14 %     (50.94 )%     27.40 %     21.86 %
 
                             
Ratios to Average Net Assets and Supplemental Data:
                                       
Net assets including liquidation value of preferred shares, end of period (in 000’s)
  $ 1,119,246     $ 620,047     $ 289,046     $ 633,253        
Net assets attributable to common shares, end of period (in 000’s)
  $ 1,020,354     $ 521,155     $ 190,109     $ 533,253     $ 432,741  
Ratio of net investment income/(loss) to average net assets attributable to common shares
    0.41 %     1.44 %     0.39 %     (0.09 )%     0.42 %
Ratio of operating expenses to average net assets attributable to common shares (b)
    1.33 %     1.78 %     1.69 %     1.45 %     1.17 %
Ratio of operating expenses to average net assets including liquidation value of preferred shares (b)
    1.17 %     1.35 %     1.37 %     1.39 %      
Portfolio turnover rate †††
    51.5 %     61.0 %     41.5 %     71.3 %     114.8 %
Preferred Shares:
                                       
6.625% Series A Cumulative Preferred Shares
                                       
Liquidation value, end of period (in 000’s)
  $ 98,892     $ 98,892     $ 98,937     $ 100,000        
Total shares outstanding (in 000’s)
    3,956       3,956       3,957       4,000        
Liquidation preference per share
  $ 25.00     $ 25.00     $ 25.00     $ 25.00        
Average market value (c)
  $ 26.01     $ 24.60     $ 24.10     $ 24.16        
Asset coverage per share
  $ 282.95     $ 156.75     $ 73.04     $ 158.31        
Asset coverage
    1,132 %     627 %     292 %     633 %      
 
  Based on net asset value per share, adjusted for reinvestment of distributions at the net asset value per share on the ex-dividend dates.
 
††   Based on market value per share, adjusted for reinvestment of distributions at prices determined under the Fund’s dividend reinvestment plan.
 
†††   Effective in 2008, a change in accounting policy was adopted with regard to the calculation of the portfolio turnover rate to include cash proceeds due to mergers. Had this policy been adopted retroactively, the portfolio turnover rate for the year ended December 31, 2007 would have been 77.7%. The portfolio turnover rate for the year ended 2006 would have been as shown.
 
(a)   Calculated based upon average common shares outstanding on the record dates throughout the periods.
 
(b)   The Fund incurred interest expense during the years ended December 31, 2008, 2007, and 2006. If interest expense had not been incurred, the ratio of operating expenses to average net assets attributable to common shares would have been 1.54%, 1.33%, and 1.16%, respectively, and for 2008 and 2007, the ratio of operating expenses to average net assets including liquidation value of preferred shares would have been 1.25% and 1.27%, respectively. For the years ended December 31, 2010 and 2009, the effect of interest expense was minimal.
 
(c)   Based on weekly prices.
 
(d)   Amount represents less than $0.005 per share.
See accompanying notes to financial statements.

9


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS
1. Organization. The Gabelli Global Gold, Natural Resources & Income Trust (the “Fund”) is a non-diversified closed-end management investment company organized as a Delaware statutory trust on January 4, 2005 and registered under the Investment Company Act of 1940, as amended (the “1940 Act”). Investment operations commenced on March 31, 2005.
     The Fund’s primary investment objective is to provide a high level of current income. The Fund’s secondary investment objective is to seek capital appreciation consistent with the Fund’s strategy and its primary objective. Under normal market conditions, the Fund will attempt to achieve its objectives by investing 80% of its assets in equity securities of companies principally engaged in the gold and natural resources industries. As part of its investment strategy, the Fund intends to earn income through an option strategy of writing (selling) covered call options on equity securities in its portfolio. The Fund anticipates that it will invest at least 25% of its assets in the equity securities of companies principally engaged in the exploration, mining, fabrication, processing, distribution, or trading of gold, or the financing, managing and controlling, or operating of companies engaged in “gold related” activities (“Gold Companies”). In addition, the Fund anticipates that it will invest at least 25% of its assets in the equity securities of companies principally engaged in the exploration, production, or distribution of natural resources, such as gas and oil, paper, food and agriculture, forestry products, metals, and minerals as well as related transportation companies and equipment manufacturers (“Natural Resources Companies”). The Fund may invest in the securities of companies located anywhere in the world.
     The Fund may invest a high percentage of its assets in specific sectors of the market in order to achieve a potentially greater investment return. As a result, the Fund may be more susceptible to economic, political, and regulatory developments in a particular sector of the market, positive or negative, and may experience increased volatility to the Fund’s NAV and a magnified effect in its total return.
2. Significant Accounting Policies. The Fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
     Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Trustees (the “Board”) so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the “Adviser”).
     Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market but prior to the close of business on the day the securities are being valued. Debt instruments with remaining maturities of sixty days or less that are not credit impaired are valued at amortized cost, unless the Board determines such amount does not reflect the securities’ fair value, in which case these securities will be fair valued as determined by the Board. Debt instruments having a maturity greater than sixty days for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations.
     Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S. dollar value ADR securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security.
     The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:
       
    Level 1 — quoted prices in active markets for identical securities;
 
    Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and
 
    Level 3 — significant unobservable inputs (including the Fund’s determinations as to the fair value of investments).

10


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued)
     A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments in securities and other financial instruments by inputs used to value the Fund’s investments as of December 31, 2010 is as follows:
                                 
    Valuation Inputs        
    Level 1     Level 2     Level 3     Total  
    Quoted     Other Significant     Significant     Market Value  
    Prices     Observable Inputs     Unobservable Inputs     at 12/31/10  
INVESTMENTS IN SECURITIES:
                               
ASSETS (Market Value):
                               
Common Stocks:
                               
Energy and Energy Services
  $ 403,267,201           $ 0     $ 403,267,201  
Other Industries (a)
    599,468,120                   599,468,120  
 
Total Common Stocks
    1,002,735,321             0       1,002,735,321  
 
Convertible Preferred Stocks (a)
    4,355,200                   4,355,200  
 
Rights (a)
    410,536                   410,536  
 
Warrants:
                               
Energy and Energy Services
                0       0  
Metals and Mining
    339,435     $ 642,412             981,847  
 
Total Warrants
    339,435       642,412       0       981,847  
 
Convertible Corporate Bonds
          10,466,875       3,419,897       13,886,772  
Corporate Bonds
          17,769,613       43,047       17,812,660  
U.S. Government Obligations
          116,110,099             116,110,099  
 
TOTAL INVESTMENTS IN SECURITIES – ASSETS
  $ 1,007,840,492     $ 144,988,999     $ 3,462,944     $ 1,156,292,435  
 
INVESTMENTS IN SECURITIES:
                               
LIABILITIES (Market Value):
                               
EQUITY CONTRACTS:
                               
Call Options Written
  $ (32,179,367 )   $ (24,072,407 )   $     $ (56,251,774 )
Put Options Written
    (1,425,525 )     (208,530 )           (1,634,055 )
 
TOTAL INVESTMENTS IN SECURITIES – LIABILITIES
  $ (33,604,892 )   $ (24,280,937 )   $     $ (57,885,829 )
 
 
(a)   Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.
    The Fund did not have significant transfers between Level 1 and Level 2 during the year ended December 31, 2010.
    The following table reconciles Level 3 investments for which significant unobservable inputs were used to determine fair value:
                                                                         
                                                                    Net change  
                                                                    in unrealized  
                                                                    appreciation/  
                                                                    depreciation  
                            Change in                                     during the  
    Balance     Accrued     Realized     unrealized     Net     Transfers     Transfers     Balance     period on Level 3  
    as of     discounts/     gain/     appreciation/     purchases/     into     out of     as of     investments held  
    12/31/09     (premiums)     (loss)     depreciation†     (sales)     Level 3††     Level 3††     12/31/10     at 12/31/10†  
 
INVESTMENTS IN SECURITIES:
                                                                       
ASSETS (Market Value):
                                                                       
Common Stocks:
                                                                       
Energy and Energy Services
  $ 0     $     $     $     $     $     $     $ 0     $  
Warrants:
                                                                       
Energy and Energy Services
    0                                           0        
 
Convertible Corporate Bonds
                      (85,450 )     2,800,000       705,347             3,419,897       (85,450 )
Corporate Bonds
    768,131       44,975             (1,400,865 )     630,806                   43,047       (1,400,865 )
 
TOTAL INVESTMENTS IN SECURITIES
  $ 768,131     $ 44,975     $     $ (1,486,315 )   $ 3,430,806     $ 705,347     $     $ 3,462,944     $ (1,486,315 )
 
 
  Net change in unrealized appreciation/depreciation on investments is included in the related amounts in the Statement of Operations.
 
††   The Fund’s policy is to recognize transfers into and transfers out of Level 3 as of the beginning of the reporting period.
     In January 2010, the Financial Accounting Standards Board (“FASB”) issued amended guidance to improve disclosure about fair value measurements which requires additional disclosures about transfers between Levels 1 and 2 and separate disclosures about purchases, sales, issuances, and settlements in the reconciliation of fair value measurements using significant unobservable inputs (Level 3). FASB also clarified existing disclosure requirements relating to the levels of disaggregation of fair value measurement and inputs and valuation techniques used to measure fair value. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2009 and interim periods within those fiscal years. Management has adopted the amended guidance and determined that there was no material impact to the Fund’s financial statements except for additional disclosures made in the

11


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued)
notes. Disclosures about purchases, sales, issuances, and settlements in the rollforward of activity in Level 3 fair value measurements are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years. Management is currently evaluating the impact of the additional disclosure requirements on the Fund’s financial statements.
Derivative Financial Instruments.
The Fund may engage in various portfolio investment strategies by investing in a number of derivative financial instruments for the purpose of increasing the income of the Fund. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or that, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.
The Fund’s derivative contracts held at December 31, 2010, if any, are not accounted for as hedging instruments under GAAP.
Swap Agreements. The Fund may enter into equity contract for difference swap transactions for the purpose of increasing the income of the Fund. The use of swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio security transactions. In an equity contract for difference swap, a set of future cash flows is exchanged between two counterparties. One of these cash flow streams will typically be based on a reference interest rate combined with the performance of a notional value of shares of a stock. The other will be based on the performance of the shares of a stock. Depending on the general state of short-term interest rates and the returns on the Fund’s portfolio securities at the time a swap transaction reaches its scheduled termination date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the replacement will not be as favorable as on the expiring transaction.
Unrealized gains related to swaps are reported as an asset and unrealized losses are reported as a liability in the Statement of Assets and Liabilities. The change in value of swaps, including the accrual of periodic amounts of interest to be received or paid on swaps, is reported as unrealized gain or loss in the Statement of Operations. A realized gain or loss is recorded upon receipt or payment of a periodic payment or termination of swap agreements. During the year ended December 31, 2010, the Fund held no investments in equity contract for difference swap agreements.
Options. The Fund may purchase or write call or put options on securities or indices for the purpose of increasing the income of the Fund. As a writer of put options, the Fund receives a premium at the outset and then bears the risk of unfavorable changes in the price of the financial instrument underlying the option. The Fund would incur a loss if the price of the underlying financial instrument decreases between the date the option is written and the date on which the option is terminated. The Fund would realize a gain, to the extent of the premium, if the price of the financial instrument increases between those dates. If a written call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether there has been a realized gain or loss. If a written put option is exercised, the premium reduces the cost basis of the security.
As a purchaser of put options, the Fund pays a premium for the right to sell to the seller of the put option the underlying security at a specified price. The seller of the put has the obligation to purchase the underlying security upon exercise at the exercise price. If the price of the underlying security declines, the Fund would realize a gain upon sale or exercise. If the price of the underlying security increases or stays the same, the Fund would realize a loss upon sale or at the expiration date, but only to the extent of the premium paid.
In the case of call options, these exercise prices are referred to as “in-the-money”, “at-the-money”, and “out-of-the-money”, respectively. The Fund may write (a) in-the-money call options when the Adviser expects that the price of the underlying security will remain stable or decline during the option period, (b) at-the-money call options when the Adviser expects that the price of the underlying security will remain stable, decline, or advance moderately during the option period, and (c) out-of-the-money call options when the Adviser expects that the premiums received from writing the call option will be greater than the appreciation in the price of the underlying security above the exercise price. By writing a call option, the Fund limits its opportunity to profit from any increase in the market value of the underlying security above the exercise price of the option. Out-of-the-money, at-the-money, and in-the-money put options (the reverse of call options as to the relation of exercise price to market price) may be utilized in the same market environments that such call options are used in equivalent transactions. Option positions at December 31, 2010 are reflected within the Schedule of Investments.

12


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued)
The Fund’s volume of activity in equity options contracts during the year ended December 31, 2010 had an average monthly premium amount of approximately $30,684,654. Please refer to Note 4 for option activity during the year ended December 31, 2010.
     As of December 31, 2010, the value of equity option positions can be found in the Statement of Assets and Liabilities under Liabilities, Call options written and Put options written. For the year ended December 31, 2010, the effect of equity option positions can be found in the Statement of Operations under Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, Written Options, and Foreign Currency, Net realized gain on written options and Net change in unrealized depreciation on written options.
     Repurchase Agreements. The Fund may enter into repurchase agreements with primary government securities dealers recognized by the Federal Reserve Board, with member banks of the Federal Reserve System, or with other brokers or dealers that meet credit guidelines established by the Adviser and reviewed by the Board. Under the terms of a typical repurchase agreement, the Fund takes possession of an underlying debt obligation subject to an obligation of the seller to repurchase, and the Fund to resell, the obligation at an agreed-upon price and time, thereby determining the yield during the Fund’s holding period. It is the policy of the Fund to receive and maintain securities as collateral whose market value is not less than their repurchase price. The Fund will make payment for such securities only upon physical delivery or upon evidence of book entry transfer of the collateral to the account of the custodian. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market on a daily basis to maintain the adequacy of the collateral. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited. At December 31, 2010, the Fund held no investments in repurchase agreements.
     Securities Sold Short. The Fund may enter into short sale transactions. Short selling involves selling securities that may or may not be owned and, at times, borrowing the same securities for delivery to the purchaser, with an obligation to replace such borrowed securities at a later date. The proceeds received from short sales are recorded as liabilities and the Fund records an unrealized gain or loss to the extent of the difference between the proceeds received and the value of an open short position on the day of determination. The Fund records a realized gain or loss when the short position is closed out. By entering into a short sale, the Fund bears the market risk of an unfavorable change in the price of the security sold short. Dividends on short sales are recorded as an expense by the Fund on the ex-dividend date and interest expense is recorded on the accrual basis. The broker retains collateral for the value of the open positions, which is adjusted periodically as the value of the position fluctuates. At December 31, 2010, there were no short sales outstanding.
     Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at the current exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gain/loss on investments.
     Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. issuers.
     Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
     Securities Transactions and Investment Income. Securities transactions are accounted for on the trade date with realized gain or loss on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on the accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.

13


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued)
     Custodian Fee Credits and Interest Expense. When cash balances are maintained in the custody account, the Fund receives credits which are used to offset custodian fees. The gross expenses paid under the custody arrangement are included in custodian fees in the Statement of Operations with the corresponding expense offset, if any, shown as “Custodian fee credits.” When cash balances are overdrawn, the Fund is charged an overdraft fee equal to 110% of the 90 day Treasury Bill rate on outstanding balances. This amount, if any, would be included in “interest expense” in the Statement of Operations. There were no custodian fee credits earned during the year ended December 31, 2010.
     Distributions to Shareholders. Distributions to common shareholders are recorded on the ex-dividend date. Distributions to shareholders are based on income and capital gains as determined in accordance with federal income tax regulations, which may differ from income and capital gains as determined under GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities and foreign currency transactions held by the Fund, timing differences, and differing characterizations of distributions made by the Fund. Distributions from net investment income for federal income tax purposes include net realized gains on foreign currency transactions. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, adjustments are made to the appropriate capital accounts in the period when the differences arise. Permanent differences were primarily due to disallowed expenses related to shelf offering expense, the tax treatment of currency gains and losses, reclassifications of gains on investments in passive foreign investment companies, recharacterization of distributions, and mark-to-market adjustments on the sale of a security no longer deemed a passive foreign investment company. These reclassifications have no impact on the NAV of the Fund. For the year ended December 31, 2010, reclassifications were made to decrease accumulated distributions in excess of net investment income by $3,769,777 and to increase accumulated net realized loss on investments, securities sold short, written options, and foreign currency transactions by $3,553,441 with an offsetting adjustment to paid-in capital.
     Distributions to shareholders of the Fund’s 6.625% Series A Cumulative Preferred Shares are accrued on a daily basis.
     The tax character of distributions paid during the years ended December 31, 2010 and December 31, 2009 was as follows:
                                 
    Year Ended     Year Ended  
    December 31, 2010     December 31, 2009  
    Common     Preferred     Common     Preferred  
Distributions paid from:
                               
Ordinary income (inclusive of short-term capital gains)
  $ 61,651,357     $ 5,490,261     $ 12,246,692     $ 4,958,450  
Net long-term capital gains
    12,122,449       1,079,545       3,844,859       1,556,710  
Return of capital
                22,238,654        
 
                       
Total distributions paid
  $ 73,773,806     $ 6,569,806     $ 38,330,205     $ 6,515,160  
 
                       
     Provision for Income Taxes. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). It is the policy of the Fund to comply with the requirements of the Code applicable to regulated investment companies and to distribute substantially all of its net investment company taxable income and net capital gains. Therefore, no provision for federal income taxes is required.
     As of December 31, 2010, the components of accumulated earnings/losses on a tax basis were as follows:
         
Undistributed ordinary income (inclusive of short-term capital gains)
  $ 1,197,182  
Net unrealized appreciation on investments, written options, and foreign currency translations
    118,977,958  
Other temporary differences*
    (2,805,656 )
 
     
Total
  $ 117,369,484  
 
     
 
*   Other temporary differences are primarily due to adjustments on income from investments in hybrid securities, and outstanding straddle losses.
     At December 31, 2010, the temporary difference between book basis and tax basis net unrealized appreciation/depreciation on investments was primarily due to deferral of losses from wash sales for tax purposes, mark-to-market adjustments on investments in passive foreign investment companies, and mark-to-market adjustments on the sale of a security no longer deemed a passive foreign investment company.

14


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued)
     The following summarizes the tax cost of investments, written options, and the related net unrealized appreciation/depreciation at December 31, 2010:
                                 
            Gross     Gross     Net Unrealized  
    Cost/     Unrealized     Unrealized     Appreciation/  
    Premiums     Appreciation     Depreciation     Depreciation  
Investments
  $ 1,020,672,500     $ 173,455,934     $ (37,835,999 )   $ 135,619,935  
Written options
    (41,187,943 )     10,464,294       (27,162,180 )     (16,697,886 )
 
                       
 
  $ 979,484,557     $ 183,920,228     $ (64,998,179 )   $ 118,922,049  
 
                       
     The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. For the year ended December 31, 2010, the Fund did not incur any income tax, interest, or penalties. As of December 31, 2010, the Adviser has reviewed all open tax years and concluded that there was no impact to the Fund’s net assets or results of operations. Tax years ended December 31, 2008 through December 31, 2010, remain subject to examination by the Internal Revenue Service and state taxing authorities. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.
3. Agreements and Transactions with Affiliates. The Fund has entered into an investment advisory agreement (the “Advisory Agreement”) with the Adviser which provides that the Fund will pay the Adviser a fee, computed weekly and paid monthly, equal on an annual basis to 1.00% of the value of the Fund’s average weekly net assets including the liquidation value of preferred shares. In accordance with the Advisory Agreement, the Adviser provides a continuous investment program for the Fund’s portfolio and oversees the administration of all aspects of the Fund’s business and affairs.
     The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement between the Fund and the Adviser. During the year ended December 31, 2010, the Fund paid or accrued $45,000 to the Adviser in connection with the cost of computing the Fund’s NAV.
     As per the approval of the Board, the Fund compensates officers of the Fund, who are employed by the Fund and are not employed by the Adviser (although the officers may receive incentive based variable compensation from affiliates of the Adviser) and pays its allocated portion of the cost of the Fund’s Chief Compliance Officer. For the year ended December 31, 2010, the Fund paid or accrued $142,481 in payroll expenses in the Statement of Operations.
     The Fund pays each Trustee who is not considered an affiliated person an annual retainer of $6,000 plus $1,000 for each Board meeting attended. Each Trustee is reimbursed by the Fund for any out of pocket expenses incurred in attending meetings. All Board committee members receive $500 per meeting attended, the Audit Committee Chairman receives an annual fee of $3,000, the Nominating Committee Chairman receives an annual fee of $2,000, and the Lead Trustee receives an annual fee of $1,000. A Trustee may receive a single meeting fee, allocated among the participating funds, for participation in certain meetings held on behalf of multiple funds. Trustees who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund.
4. Portfolio Securities. Purchases and sales of securities for the year ended December 31, 2010, other than short-term securities and U.S. Government obligations, aggregated $650,026,130 and $380,546,948, respectively.
     Sales of U.S. Government obligations for the year ended December 31, 2010, other than short-term obligations, aggregated $7,999,229.
    Written options activity for the Fund for the year ended December 31, 2010 was as follows:
                 
    Number of        
    Contracts     Premiums  
Options outstanding at December 31, 2009
    164,312     $ 20,812,335  
Stock splits on options
    450        
Options written
    804,242       108,477,571  
Options repurchased
    (315,958 )     (35,129,805 )
Options expired
    (331,023 )     (40,436,045 )
Options exercised
    (73,600 )     (12,536,113 )
 
           
 
               
Options outstanding at December 31, 2010
    248,423     $ 41,187,943  
 
           

15


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued)
5. Capital. The Fund is authorized to issue an unlimited number of common shares of beneficial interest (par value $0.001). The Board has authorized the repurchase of its shares in the open market when the shares are trading at a discount of 7.5% or more (or such other percentage as the Board may determine from time to time) from the NAV of the shares. During the year ended December 31, 2010, the Fund did not repurchase any shares of beneficial interest.
     The Fund filed a second $350,000,000 shelf offering with the SEC that was effective February 10, 2010, enabling the Fund to offer additional common and preferred shares. The first $350,000,000 shelf offering became effective September 24, 2007. This shelf offering also gave the Fund the ability to offer additional common and preferred shares.
     On October 16, 2007, the Fund completed the placement of $100 million of Cumulative Preferred Shares (“Preferred Shares”). The Fund received net proceeds of $96,450,000 (after underwriting discounts of $3,150,000 and offering expenses of $400,000) from the public offering of 4,000,000 shares of 6.625% Series A Cumulative Preferred Shares. The Preferred Shares are senior to the common shares and result in the financial leveraging of the common shares. Such leveraging tends to magnify both the risks and opportunities to common shareholders. Dividends on the 6.625% Series A Preferred Shares are cumulative. The Fund is required by the 1940 Act and by the Statement of Preferences to meet certain asset coverage tests with respect to the Preferred Shares. If the Fund fails to meet these requirements and does not correct such failure, the Fund may be required to redeem, in part or in full, the Preferred Shares at the redemption price of $25 per share plus an amount equal to the accumulated and unpaid dividends whether or not declared on such shares in order to meet the requirements. Additionally, failure to meet the foregoing asset coverage requirements could restrict the Fund’s ability to pay dividends to common shareholders and could lead to sales of portfolio securities at inopportune times. The income received on the Fund’s assets may vary in a manner unrelated to the fixed rate, which could have either a beneficial or detrimental impact on net investment income and gains available to common shareholders.
     Commencing October 16, 2012, and at any time thereafter, the Fund, at its option, may redeem the Preferred Shares in whole or in part at the redemption price. The Board has authorized the repurchase of the Preferred Shares in the open market at prices less than the $25 liquidation value per share. During the year ended December 31, 2010, the Fund did not repurchase any shares of 6.625% Series A Cumulative Preferred Shares. At December 31, 2010, 3,955,687 Preferred Shares were outstanding and accrued dividends amounted to $90,995.
     During the year ended December 31, 2009, the Fund repurchased and retired 1,788 of the Preferred Shares in the open market at a cost of $41,966 and an average discount of approximately 6.16% from its liquidation preference.
     During the year ended December 31, 2010, the Fund issued 22,553,236 shares of beneficial interest through various “at the market offerings”. The net proceeds received from these various offerings were $375,431,472 (net of sales manager commissions of $3,792,237). Offering expenses related to the offering totaled $216,336. The net proceeds received from the various offerings exceeded the NAV of the shares by $15,753,426.
     During the year ended December 31, 2009, the Fund issued 13,989,100 shares of beneficial interest through various “at the market offerings.” The net proceeds received from these various offerings were $207,429,594 (net of sales manager commissions of $3,797,829 and offering expenses of $421,000). The net proceeds received from the various offerings exceeded the NAV of the shares by $6,249,864.
     Gabelli & Company, Inc., an affiliate of the Adviser, acted as sales manager for all of the offerings and collected sales manager commissions of $3,792,043 in 2010 and $3,797,829 in 2009.
     As of December 31, 2010, after considering the issuance of the preferred and common shares, the Fund has approximately $9,127,868 available for issuance under the shelf offering.
    Transactions in shares of beneficial interest were as follows:
                                 
    Year Ended     Year Ended  
    December 31, 2010     December 31, 2009  
    Shares     Amount     Shares     Amount  
Shares issued pursuant to shelf offerings
    22,553,236     $ 375,431,472       13,989,100     $ 207,850,594  
Net increase from shares issued upon reinvestment of distributions
    597,353       9,706,848       469,004       6,768,233  
 
                       
Total
    23,150,589     $ 385,138,320       14,458,104     $ 214,618,827  
 
                       
6. Indemnifications. The Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

16


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued)
7. Other Matters. On April 24, 2008, the Adviser entered into a settlement with the SEC to resolve an inquiry regarding prior frequent trading activity in shares of the GAMCO Global Growth Fund (the “Global Growth Fund”) by one investor who was banned from the Global Growth Fund in August 2002. In the administrative settlement order, the SEC found that the Adviser had willfully violated Section 206(2) of the 1940 Act, Section 17(d) of the 1940 Act and Rule 17d-1 thereunder, and had willfully aided and abetted and caused violations of Section 12(d)(1)(B)(i) of the 1940 Act. Under the terms of the settlement, the Adviser, while neither admitting nor denying the SEC’s findings and allegations, paid $16 million (which included a $5 million civil monetary penalty), approximately $12.8 million of which is in the process of being paid to shareholders of the Global Growth Fund in accordance with a plan developed by an independent distribution consultant and approved by the independent directors of the Global Growth Fund and acceptable to the staff of the SEC, and agreed to cease and desist from future violations of the above referenced federal securities laws and rule. The SEC order also noted the cooperation that the Adviser had given the staff of the SEC during its inquiry. The settlement did not have a material adverse impact on the Adviser or its ability to fulfill its obligations under the Advisory Agreement. On the same day, the SEC filed a civil action against the Executive Vice President and Chief Operating Officer of the Adviser, alleging violations of certain federal securities laws arising from the same matter. The officer is also an officer of the Fund, the Global Growth Fund, and other funds in the Gabelli/GAMCO fund complex. The officer denied the allegations and is continuing in his positions with the Adviser and the funds. The court dismissed certain claims and found that the SEC was not entitled to pursue various remedies against the officer while leaving one remedy in the event the SEC were able to prove violations of law. The court subsequently dismissed without prejudice the remaining remedy against the officer, which would allow the SEC to appeal the court’s rulings. On October 29, 2010 the SEC filed its appeal with the U.S. Court of Appeals for the Second Circuit regarding the lower court’s orders. The Adviser currently expects that any resolution of the action against the officer will not have a material adverse impact on the Fund or the Adviser or its ability to fulfill its obligations under the Advisory Agreement.
8. Subsequent Events. The Fund filed a $750,000,000 shelf offering with the SEC that was effective February 4, 2011, enabling the Fund to offer additional common and preferred shares.
Management has evaluated the impact on the Fund of events occurring subsequent to December 31, 2010, through the date the financial statements were issued, and has determined that there were no additional subsequent events requiring recognition or disclosure in the financial statements.

17


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of
The Gabelli Global Gold, Natural Resources & Income Trust:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of The Gabelli Global Gold, Natural Resources & Income Trust (hereafter referred to as the “Trust”) at December 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
February 28, 2011

18


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
ADDITIONAL FUND INFORMATION (Unaudited)
     The business and affairs of the Fund are managed under the direction of the Fund’s Board of Trustees. Information pertaining to the Trustees and officers of the Fund is set forth below. The Fund’s Statement of Additional Information includes additional information about the Fund’s Trustees and is available without charge, upon request, by calling 800-GABELLI (800-422-3554) or by writing to The Gabelli Global Gold Natural Resources & Income Trust at One Corporate Center, Rye, NY 10580-1422.
                     
        Number of        
    Term of   Funds in Fund        
Name, Position(s)   Office and   Complex        
Address1   Length of   Overseen by   Principal Occupation(s)   Other Directorships
and Age   Time Served2   Trustee   During Past Five Years   Held by Trustee4
INTERESTED TRUSTEE:
                   
 
Salvatore M. Salibello3
Trustee
Age: 65
  Since 2005**     3     Certified Public Accountant and Managing Partner of the public accounting firm Salibello & Broder LLP since 1978   Director of Kid Brands, Inc. (group of companies in infant and juvenile products) and until September 2007, Director of Brooklyn Federal Bank Corp., Inc. (independent community bank)
 
                   
INDEPENDENT TRUSTEES5:
                   
 
Anthony J. Colavita
Trustee
Age: 75
  Since 2005*     34     President of the law firm of Anthony J. Colavita, P.C.  
 
                   
James P. Conn
Trustee
Age: 72
  Since 2005**     18     Former Managing Director and Chief Investment Officer of Financial Security Assurance Holdings Ltd. (insurance holding company) (1992-1998)   Director of First Republic Bank (banking) through January 2008 and LaQuinta Corp. (hotels) through January 2006
 
                   
Mario d’Urso
Trustee
Age: 70
  Since 2005***     5     Chairman of Mittel Capital Markets S.p.A., since 2001; Senator in the Italian Parliament (1996-2001)  
 
                   
Vincent D. Enright
Trustee
Age: 67
  Since 2005***     16     Former Senior Vice President and Chief Financial Officer of KeySpan Corporation (public utility) (1994-1998)   Director of Echo Therapeutics, Inc. (therapeutics and diagnostics) and until September 2006, Director of Aphton Corporation (pharmaceuticals)
 
                   
Frank J. Fahrenkopf, Jr.
Trustee
Age: 71
  Since 2005*     6     President and Chief Executive Officer of the American Gaming Association; Co-Chairman of the Commission on Presidential Debates; Former Chairman of the Republican National Committee (1983-1989)   Director of First Republic Bank (banking)
 
                   
Michael J. Melarkey
Trustee
Age: 61
  Since 2005***     5     Partner in the law firm of Avansino, Melarkey, Knobel & Mulligan   Director of Southwest Gas Corporation (natural gas utility)
 
                   
Anthonie C. van Ekris
Trustee
Age: 76
  Since 2005**     20     Chairman of BALMAC International, Inc. (commodities and futures trading)   Director of Aurado Energy Inc. (oil and gas operations) through 2005
 
                   
Salvatore J. Zizza
Trustee
Age: 65
  Since 2005*     28     Chairman and Chief Executive Officer of Zizza & Co., Ltd. (private holding company) and Chief Executive Officer of General Employment Enterprises, Inc.   Director of Harbor BioSciences, Inc. (biotechnology); and Trans-Lux Corporation (business services); Chairman of each of BAM (manufacturing); Metropolitan Paper Recycling (recycling); Bergen Cove Realty Inc. (real estate); Bion Environmental Technologies (technology) (2005-2008); Director of Earl Scheib Inc. (automotive painting) through April 2009

19


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
ADDITIONAL FUND INFORMATION (Continued) (Unaudited)
         
    Term of    
Name, Position(s)   Office and    
Address1   Length of   Principal Occupation(s)
and Age   Time Served2   During Past Five Years
OFFICERS:
       
 
Bruce N. Alpert
President
Age: 59
  Since 2005   Executive Vice President and Chief Operating Officer of Gabelli Funds, LLC since 1988 and an officer of all of the registered investment companies in the Gabelli/GAMCO Funds complex. Director of Teton Advisors, Inc. since 1998; Chairman of Teton Advisors, Inc. 2008 to 2010; President of Teton Advisors, Inc. 1998 through 2008; Senior Vice President of GAMCO Investors, Inc. since 2008
 
       
Carter W. Austin
Vice President
Age: 44
  Since 2005   Vice President of other closed-end funds within the Gabelli Funds complex; Vice President of Gabelli Funds, LLC since 1996
 
       
Molly A.F. Marion
Vice President
Age: 56
  Since 2005   Vice President of The Gabelli Equity Trust since 2009, Assistant Vice President of GAMCO Investors, Inc. since 2006
 
       
Laurissa M. Martire
Vice President and Ombudsman
Age: 34
  Since 2010   Vice President of other closed-end funds within the Gabelli Fund complex
 
       
Agnes Mullady
Treasurer and Secretary
Age: 52
  Since 2006   Senior Vice President of GAMCO Investors, Inc since 2009; Vice President of Gabelli Funds, LLC since 2007; Officer of all of the registered investment companies in the Gabelli/GAMCO Funds complex
 
       
Peter D. Goldstein
Chief Compliance Officer
Age: 57
  Since 2005   Director of Regulatory Affairs at GAMCO Investors, Inc. since 2004; Chief Compliance Officer of all of the registered investment companies in the Gabelli/GAMCO Funds complex
 
1   Address: One Corporate Center, Rye, NY 10580-1422, unless otherwise noted.
 
2   The Fund’s Board of Trustees is divided into three classes, each class having a term of three years. Each year the term of office of one class expires and the successor or successors elected to such class serve for a three year term. The three year term for each class expires as follows:
 
*   — Term expires at the Fund’s 2011 Annual Meeting of Shareholders or until their successors are duly elected and qualified.
 
**   — Term expires at the Fund’s 2012 Annual Meeting of Shareholders or until their successors are duly elected and qualified.
 
***   — Term expires at the Fund’s 2013 Annual Meeting of Shareholders or until their successors are duly elected and qualified.
 
    Each officer will hold office for an indefinite term until the date he or she resigns or retires or until his or her successor is elected and qualified.
 
3   “Interested person” of the Fund as defined in the 1940 Act. Mr. Salibello may be considered an “interested person” of the Fund as a result of being a partner in an accounting firm that provides professional services to affiliates of the Adviser.
 
4   This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934, as amended, i.e., public companies, or other investment companies registered under the 1940 Act.
 
5   Trustees who are not interested persons are considered “Independent” Trustees.
Certifications
     The Fund’s Chief Executive Officer has certified to the New York Stock Exchange (“NYSE”) that, as of June 14, 2010, he was not aware of any violation by the Fund of applicable NYSE corporate governance listing standards. The Fund reports to the Securities and Exchange Commission on Form N-CSR which contains certifications by the Fund’s principal executive officer and principal financial officer that relate to the Fund’s disclosure in such reports and that are required by Rule 30a-2(a) under the 1940 Act.
The Annual Meeting of The Gabelli Global Gold, Natural Resources & Income Trust’s shareholders will be held on Monday, May 16, 2011 at the Greenwich Library in Greenwich, Connecticut.

20


 

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
INCOME TAX INFORMATION (Unaudited)
December 31, 2010
Cash Dividends and Distributions
                                                         
                    Total Amount     Ordinary     Long-Term             Dividend  
  Payable     Record     Paid     Investment     Capital     Return of     Reinvestment  
  Date     Date     Per Share (a)     Income (a)     Gains (a)     Capital (b)     Price  
Common Stock                                
   
01/22/10
      01/14/10     $ 0.14000     $ 0.14000                 $ 15.3200  
   
02/19/10
      02/11/10       0.14000       0.14000                   15.2000  
   
03/24/10
      03/17/10       0.14000       0.14000                   16.7200  
   
04/23/10
      04/16/10       0.14000       0.14000                   17.0905  
   
05/24/10
      05/17/10       0.14000       0.14000                   15.0670  
   
06/23/10
      06/16/10       0.14000       0.14000                   15.5100  
   
07/23/10
      07/16/10       0.14000       0.14000                   15.5300  
   
08/24/10
      08/17/10       0.14000       0.14000                   15.2900  
   
09/23/10
      09/16/10       0.14000       0.14000                   16.6500  
   
10/22/10
      10/15/10       0.14000       0.14000                   17.0100  
   
11/22/10
      11/15/10       0.14000       0.02790     $ 0.11210             17.6200  
   
12/17/10
      12/14/10       0.14000       0.02790       0.11210             17.8900  
   
 
                                         
   
 
            $ 1.68000     $ 1.45580     $ 0.22420                
   
 
                                                 
6.625% Series A Cumulative Preferred Shares                                
   
03/26/10
      03/19/10     $ 0.41406     $ 0.41406                        
   
06/28/10
      06/21/10       0.41406       0.41406                        
   
09/27/10
      09/20/10       0.41406       0.41406                        
   
12/27/10
      12/17/10       0.41406       0.14185     $ 0.27222                  
   
 
                                           
   
 
            $ 1.65625     $ 1.38403     $ 0.27222                  
     A Form 1099-DIV has been mailed to all shareholders of record which sets forth specific amounts to be included in your 2010 tax returns. Ordinary income distributions include net investment income and realized net short-term capital gains. Ordinary income is reported in box 1a of Form 1099-DIV. Capital gain distributions are reported in box 2a of Form 1099-DIV.
     The long-term gain distributions for the fiscal year ended December 31, 2010 were $13,201,994, or the maximum amount.
Corporate Dividends Received Deduction, Qualified Dividend Income, and U.S. Government Securities Income
     In 2010, the Fund paid to common and 6.625% Series A Cumulative Preferred shareholders ordinary income dividends of $1.45580 and $1.38403 per share, respectively. For 2010, 0.61% of the ordinary dividend qualified for the dividend received deduction available to corporations, 2.08% of the ordinary income distribution was deemed qualified dividend income, and 18.65% of ordinary income distribution was qualified interest income. The percentage of ordinary income dividends paid by the Fund during 2010 derived from U.S. Government securities was 0.04%. Such income is exempt from state and local taxes in all states. However, many states, including New York and California, allow a tax exemption for a portion of the income earned only if a mutual fund has invested at least 50% of its assets at the end of each quarter of its fiscal year in U.S. Government securities. The Fund did not meet this strict requirement in 2010. The percentage of U.S. Government securities held as of December 31, 2010 was 10.05%.
                                                 
            Historical Distribution Summary                
            Short-Term     Long-Term                     Adjustment  
    Investment     Capital     Capital     Return of     Total     to Cost  
    Income (c)     Gains (c)     Gains     Capital (b)     Distributions (a)     Basis  
Common Stock
                                               
2010
  $ 0.34100     $ 1.11480     $ 0.22420           $ 1.68000        
2009
    0.25914       0.28117       0.12228     $ 1.01741       1.68000     $ 1.01741  
2008
    0.11760             0.39240       1.17000       1.68000       1.17000  
2007
    0.14980       0.98430       0.79590             1.93000        
2006
          1.45430       0.28570             1.74000        
2005
    0.08460       1.07540                   1.16000        
6.625% Series A Cumulative Preferred Shares
                             
2010
  $ 0.32400     $ 1.06004     $ 0.27222           $ 1.65625        
2009
    0.60224       0.65354       0.40047             1.65625        
2008
    0.38281             1.27344             1.65625        
2007
    0.01987       0.09151       0.21527             0.32665        
 
(a)   Total amounts may differ due to rounding.
 
(b)   Non-taxable.
 
(c)   Taxable as ordinary income for Federal tax purposes.
 
    All designations are based on financial information available as of the date of this annual report and, accordingly, are subject to change. For each item, it is the intention of the Fund to designate the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.

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AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLANS
Enrollment in the Plan
     It is the policy of The Gabelli Global Gold, Natural Resources & Income Trust (the “Fund”) to automatically reinvest dividends payable to common shareholders. As a “registered” shareholder you automatically become a participant in the Fund’s Automatic Dividend Reinvestment Plan (the “Plan”). The Plan authorizes the Fund to credit common shares to participants upon an income dividend or a capital gains distribution regardless of whether the shares are trading at a discount or a premium to net asset value. All distributions to shareholders whose shares are registered in their own names will be automatically reinvested pursuant to the Plan in additional shares of the Fund. Plan participants may send their share certificates to American Stock Transfer (“AST”) to be held in their dividend reinvestment account. Registered shareholders wishing to receive their distributions in cash must submit this request in writing to:
The Gabelli Global Gold, Natural Resources & Income Trust
c/o American Stock Transfer
6201 15th Avenue
Brooklyn, NY 11219
     Shareholders requesting this cash election must include the shareholder’s name and address as they appear on the share certificate. Shareholders with additional questions regarding the Plan or requesting a copy of the terms of the Plan, may contact AST at (888) 422-3262.
     If your shares are held in the name of a broker, bank, or nominee, you should contact such institution. If such institution is not participating in the Plan, your account will be credited with a cash dividend. In order to participate in the Plan through such institution, it may be necessary for you to have your shares taken out of “street name” and re-registered in your own name. Once registered in your own name your distributions will be automatically reinvested. Certain brokers participate in the Plan. Shareholders holding shares in “street name” at participating institutions will have dividends automatically reinvested. Shareholders wishing a cash dividend at such institution must contact their broker to make this change.
     The number of common shares distributed to participants in the Plan in lieu of cash dividends is determined in the following manner. Under the Plan, whenever the market price of the Fund’s common shares is equal to or exceeds net asset value at the time shares are valued for purposes of determining the number of shares equivalent to the cash dividends or capital gains distribution, participants are issued common shares valued at the greater of (i) the net asset value as most recently determined or (ii) 95% of the then current market price of the Fund’s common shares. The valuation date is the dividend or distribution payment date or, if that date is not a NYSE Amex trading day, the next trading day. If the net asset value of the common shares at the time of valuation exceeds the market price of the common shares, participants will receive common shares from the Fund valued at market price. If the Fund should declare a dividend or capital gains distribution payable only in cash, AST will buy common shares in the open market, or on the NYSE Amex, or elsewhere, for the participants’ accounts, except that AST will endeavor to terminate purchases in the open market and cause the Fund to issue shares at net asset value if, following the commencement of such purchases, the market value of the common shares exceeds the then current net asset value.
     The automatic reinvestment of dividends and capital gains distributions will not relieve participants of any income tax which may be payable on such distributions. A participant in the Plan will be treated for federal income tax purposes as having received, on a dividend payment date, a dividend or distribution in an amount equal to the cash the participant could have received instead of shares.
Voluntary Cash Purchase Plan
     The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders to increase their investment in the Fund. In order to participate in the Voluntary Cash Purchase Plan, shareholders must have their shares registered in their own name.
     Participants in the Voluntary Cash Purchase Plan have the option of making additional cash payments to AST for investments in the Fund’s common shares at the then current market price. Shareholders may send an amount from $250 to $10,000. AST will use these funds to purchase shares in the open market on or about the 1st and 15th of each month. AST will charge each shareholder who participates a pro rata share of the brokerage commissions. Brokerage charges for such purchases are expected to be less than the usual brokerage charge for such transactions. It is suggested that any voluntary cash payments be sent to American Stock Transfer, 6201 15th Avenue, Brooklyn, NY 11219 such that AST receives such payments approximately 10 days before the investment date. Funds not received at least five days before the investment date shall be held for investment until the next purchase date. A payment may be withdrawn without charge if notice is received by AST at least 48 hours before such payment is to be invested.
     Shareholders wishing to liquidate shares held at AST must do so in writing or by telephone. Please submit your request to the above mentioned address or telephone number. Include in your request your name, address, and account number. The cost to liquidate shares is $1.00 per transaction as well as the brokerage commission incurred. Brokerage charges are expected to be less than the usual brokerage charge for such transactions.
     For more information regarding the Automatic Dividend Reinvestment Plan and Voluntary Cash Purchase Plan, brochures are available by calling (914) 921-5070 or by writing directly to the Fund.
     The Fund reserves the right to amend or terminate the Plan as applied to any voluntary cash payments made and any dividend or distribution paid subsequent to written notice of the change sent to the members of the Plan at least 90 days before the record date for such dividend or distribution. The Plan also may be amended or terminated by AST on at least 90 days written notice to participants in the Plan.

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(LOGO)
TRUSTEES AND OFFICERS
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
One Corporate Center, Rye, NY 10580-1422
   
Trustees
 
Anthony J. Colavita
 
President,
 
Anthony J. Colavita, P.C.
 
James P. Conn
 
Former Managing Director &
 
Chief Investment Officer,
 
Financial Security Assurance Holdings Ltd.
 
Mario d’Urso
 
Former Italian Senator
 
Vincent D. Enright
 
Former Senior Vice President &
 
Chief Financial Officer,
 
KeySpan Corp.
 
Frank J. Fahrenkopf, Jr.
 
President & Chief Executive Officer,
 
American Gaming Association
 
Michael J. Melarkey
 
Attorney-at-Law,
 
Avansino, Melarkey, Knobel & Mulligan
 
Salvatore M. Salibello
 
Certified Public Accountant,
 
Salibello & Broder, LLP
 
Anthonie C. van Ekris
 
Chairman, BALMAC International, Inc.
 
Salvatore J. Zizza
 
Chairman, Zizza & Co., Ltd.
 
   
 
Officers
Bruce N. Alpert
  President
Carter W. Austin
  Vice President
Peter D. Goldstein
  Chief Compliance Officer
Molly A.F. Marion
  Vice President &Ombudsman
Laurissa M. Martire
  Vice President & Ombudsman
David I. Schachter
  Vice President
Agnes Mullady
  Treasurer & Secretary
Investment Adviser
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
Custodian
The Bank of New York Mellon
Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
Transfer Agent and Registrar
American Stock Transfer and Trust Company
Stock Exchange Listing
                     
        Common 6.625%
Preferred
NYSE Amex—Symbol:   GGN   GGN PrA
Shares Outstanding:   55,911,850   3,955,687
The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading “Specialized Equity Funds,” in Monday’s The Wall Street Journal. It is also listed in Barron’s Mutual Funds/Closed End Funds section under the heading “Specialized Equity Funds.”
The Net Asset Value per share may be obtained each day by calling (914) 921-5070 or visiting ww.gabelli.com.
The NASDAQ symbol for the Net Asset Value is “XGGNX.”
For general information about the Gabelli Funds, call 800-GABELLI (800-422-3554), fax us at 914-921-5118, visit Gabelli Funds’ Internet homepage at: www.gabelli.com, or e-mail us at: closedend@gabelli.com
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Fund may, from time to time, purchase its common shares in the open market when the Fund’s shares are trading at a discount of 7.5% or more from the net asset value of the shares. The Fund may also, from time to time, purchase its preferred shares in the open market when the preferred shares are trading at a discount to the liquidation value.


 

(LOGO)


 

Item 2. Code of Ethics.
  (a)   The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.
 
  (c)   There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description.
 
  (d)   The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.
Item 3. Audit Committee Financial Expert.
As of the end of the period covered by the report, the registrant’s Board of Trustees has determined that Salvatore J. Zizza is qualified to serve as an audit committee financial expert serving on its audit committee and that he is “independent,” as defined by Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
Audit Fees
  (a)   The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $58,300 for 2009 and $47,803 for 2010.
Audit-Related Fees
  (b)   The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $7,467

 


 

      for 2009 and $22,769 for 2010. Audit-related fees represent services provided in the preparation of Preferred Shares Reports.
Tax Fees
  (c)   The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $6,000 for 2009 and $4,750 for 2010. Tax fees represent tax compliance services provided in connection with the review of the Registrant’s tax returns.
All Other Fees
  (d)   The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2009 and $0 for 2010.
 
  (e)(1)   Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
 
      Pre-Approval Policies and Procedures. The Audit Committee (“Committee”) of the registrant is responsible for pre-approving (i) all audit and permissible non-audit services to be provided by the independent registered public accounting firm to the registrant and (ii) all permissible non-audit services to be provided by the independent registered public accounting firm to the Adviser, Gabelli Funds, LLC, and any affiliate of Gabelli Funds, LLC (“Gabelli”) that provides services to the registrant (a “Covered Services Provider”) if the independent registered public accounting firm’s engagement related directly to the operations and financial reporting of the registrant. The Committee may delegate its responsibility to pre-approve any such audit and permissible non-audit services to the Chairperson of the Committee, and the Chairperson must report to the Committee, at its next regularly scheduled meeting after the Chairperson’s pre-approval of such services, his or her decision(s). The Committee may also establish detailed pre-approval policies and procedures for pre-approval of such services in accordance with applicable laws, including the delegation of some or all of the Committee’s pre-approval responsibilities to the other persons (other than Gabelli or the registrant’s officers). Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the permissible non-audit services were not recognized by the registrant at the time of the engagement to be non-audit services; and (ii) such services are promptly brought to the attention of the Committee and approved by the Committee or Chairperson prior to the completion of the audit.
 
  (e)(2)   The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:
(b) 100%
(c) 100%
(d) N/A
  (f)   The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work

 


 

      performed by persons other than the principal accountant’s full-time, permanent employees was 0%.
 
  (g)   The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $0 for 2009 and $0 for 2010.
 
  (h)   The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed registrants.
The registrant has a separately designated audit committee consisting of the following members: Vincent D. Enright, Frank J. Fahrenkopf, Jr., and Salvatore J. Zizza.
Item 6. Investments.
(a)   Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.
 
(b)   Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
The Proxy Voting Policies are attached herewith.

 


 

The Voting of Proxies on Behalf of Clients
     Rules 204(4)-2 and 204-2 under the Investment Advisers Act of 1940 and Rule 30b1-4 under the Investment Company Act of 1940 require investment advisers to adopt written policies and procedures governing the voting of proxies on behalf of their clients.
     These procedures will be used by GAMCO Asset Management Inc., Gabelli Funds, LLC, Gabelli Securities, Inc., and Teton Advisors, Inc. (collectively, the “Advisers”) to determine how to vote proxies relating to portfolio securities held by their clients, including the procedures that the Advisers use when a vote presents a conflict between the interests of the shareholders of an investment company managed by one of the Advisers, on the one hand, and those of the Advisers; the principal underwriter; or any affiliated person of the investment company, the Advisers, or the principal underwriter. These procedures will not apply where the Advisers do not have voting discretion or where the Advisers have agreed to with a client to vote the client’s proxies in accordance with specific guidelines or procedures supplied by the client (to the extent permitted by ERISA).
I.   Proxy Voting Committee
     The Proxy Voting Committee was originally formed in April 1989 for the purpose of formulating guidelines and reviewing proxy statements within the parameters set by the substantive proxy voting guidelines originally published in 1988 and updated periodically, a copy of which are appended as Exhibit A. The Committee will include representatives of Research, Administration, Legal, and the Advisers. Additional or replacement members of the Committee will be nominated by the Chairman and voted upon by the entire Committee.
     Meetings are held as needed basis to form views on the manner in which the Advisers should vote proxies on behalf of their clients.
     In general, the Director of Proxy Voting Services, using the Proxy Guidelines, recommendations of Institutional Shareholder Corporate Governance Service (“ISS”), other third-party services and the analysts of Gabelli & Company, Inc., will determine how to vote on each issue. For non-controversial matters, the Director of Proxy Voting Services may vote the proxy if the vote is (1) consistent with the recommendations of the issuer’s Board of Directors and not contrary to the Proxy Guidelines; (2) consistent with the recommendations of the issuer’s Board of Directors and is a non-controversial issue not covered by the Proxy Guidelines; or (3) the vote is contrary to the recommendations of the Board of Directors but is consistent with the Proxy Guidelines. In those instances, the Director of Proxy Voting Services or the Chairman of the Committee may sign and date the proxy statement indicating how each issue will be voted.
     All matters identified by the Chairman of the Committee, the Director of Proxy Voting Services or the Legal Department as controversial, taking into account the

1


 

recommendations of ISS or other third party services and the analysts of Gabelli & Company, Inc., will be presented to the Proxy Voting Committee. If the Chairman of the Committee, the Director of Proxy Voting Services or the Legal Department has identified the matter as one that (1) is controversial; (2) would benefit from deliberation by the Proxy Voting Committee; or (3) may give rise to a conflict of interest between the Advisers and their clients, the Chairman of the Committee will initially determine what vote to recommend that the Advisers should cast and the matter will go before the Committee.
  A.   Conflicts of Interest.
 
      The Advisers have implemented these proxy voting procedures in order to prevent conflicts of interest from influencing their proxy voting decisions. By following the Proxy Guidelines, as well as the recommendations of ISS, other third-party services and the analysts of Gabelli & Company, the Advisers are able to avoid, wherever possible, the influence of potential conflicts of interest. Nevertheless, circumstances may arise in which one or more of the Advisers are faced with a conflict of interest or the appearance of a conflict of interest in connection with its vote. In general, a conflict of interest may arise when an Adviser knowingly does business with an issuer, and may appear to have a material conflict between its own interests and the interests of the shareholders of an investment company managed by one of the Advisers regarding how the proxy is to be voted. A conflict also may exist when an Adviser has actual knowledge of a material business arrangement between an issuer and an affiliate of the Adviser.
 
      In practical terms, a conflict of interest may arise, for example, when a proxy is voted for a company that is a client of one of the Advisers, such as GAMCO Asset Management Inc. A conflict also may arise when a client of one of the Advisers has made a shareholder proposal in a proxy to be voted upon by one or more of the Advisers. The Director of Proxy Voting Services, together with the Legal Department, will scrutinize all proxies for these or other situations that may give rise to a conflict of interest with respect to the voting of proxies.
 
  B.   Operation of Proxy Voting Committee
 
      For matters submitted to the Committee, each member of the Committee will receive, prior to the meeting, a copy of the proxy statement, any relevant third party research, a summary of any views provided by the Chief Investment Officer and any recommendations by Gabelli & Company, Inc. analysts. The Chief Investment Officer or the Gabelli & Company, Inc. analysts may be invited to present their viewpoints. If the Director of Proxy Voting Services or the Legal Department believe that the matter before the committee is one with respect to which a conflict of interest may exist between the Advisers and their clients, counsel will

2


 

      provide an opinion to the Committee concerning the conflict. If the matter is one in which the interests of the clients of one or more of Advisers may diverge, counsel will so advise and the Committee may make different recommendations as to different clients. For any matters where the recommendation may trigger appraisal rights, counsel will provide an opinion concerning the likely risks and merits of such an appraisal action.
     Each matter submitted to the Committee will be determined by the vote of a majority of the members present at the meeting. Should the vote concerning one or more recommendations be tied in a vote of the Committee, the Chairman of the Committee will cast the deciding vote. The Committee will notify the proxy department of its decisions and the proxies will be voted accordingly.
     Although the Proxy Guidelines express the normal preferences for the voting of any shares not covered by a contrary investment guideline provided by the client, the Committee is not bound by the preferences set forth in the Proxy Guidelines and will review each matter on its own merits. Written minutes of all Proxy Voting Committee meetings will be maintained. The Advisers subscribe to ISS, which supplies current information on companies, matters being voted on, regulations, trends in proxy voting and information on corporate governance issues.
     If the vote cast either by the analyst or as a result of the deliberations of the Proxy Voting Committee runs contrary to the recommendation of the Board of Directors of the issuer, the matter will be referred to legal counsel to determine whether an amendment to the most recently filed Schedule 13D is appropriate.
II.   Social Issues and Other Client Guidelines
     If a client has provided special instructions relating to the voting of proxies, they should be noted in the client’s account file and forwarded to the proxy department. This is the responsibility of the investment professional or sales assistant for the client. In accordance with Department of Labor guidelines, the Advisers’ policy is to vote on behalf of ERISA accounts in the best interest of the plan participants with regard to social issues that carry an economic impact. Where an account is not governed by ERISA, the Advisers will vote shares held on behalf of the client in a manner consistent with any individual investment/voting guidelines provided by the client. Otherwise the Advisers will abstain with respect to those shares.
III.   Client Retention of Voting Rights
     If a client chooses to retain the right to vote proxies or if there is any change in voting authority, the following should be notified by the investment professional or sales assistant for the client.
  -   Operations
 
  -   Legal Department

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  -   Proxy Department
 
  -   Investment professional assigned to the account
     In the event that the Board of Directors (or a Committee thereof) of one or more of the investment companies managed by one of the Advisers has retained direct voting control over any security, the Proxy Voting Department will provide each Board Member (or Committee member) with a copy of the proxy statement together with any other relevant information including recommendations of ISS or other third-party services.
IV.   Voting Records
     The Proxy Voting Department will retain a record of matters voted upon by the Advisers for their clients. The Advisers will supply information on how an account voted its proxies upon request.
     A letter is sent to the custodians for all clients for which the Advisers have voting responsibility instructing them to forward all proxy materials to:
[Adviser name]
Attn: Proxy Voting Department
One Corporate Center
Rye, New York 10580-1433
The sales assistant sends the letters to the custodians along with the trading/DTC instructions. Proxy voting records will be retained in compliance with Rule 204-2 under the Investment Advisers Act.
V.   Voting Procedures
1. Custodian banks, outside brokerage firms and clearing firms are responsible for forwarding proxies directly to the Advisers.
Proxies are received in one of two forms:
  Shareholder Vote Authorization Forms (“VAFs”) — Issued by Broadridge Financial Solutions, Inc. (“Broadridge”) VAFs must be voted through the issuing institution causing a time lag. Broadridge is an outside service contracted by the various institutions to issue proxy materials.
 
  Proxy cards which may be voted directly.
2. Upon receipt of the proxy, the number of shares each form represents is logged into the proxy system according to security.
3. In the case of a discrepancy such as an incorrect number of shares, an improperly signed or dated card, wrong class of security, etc., the issuing custodian is notified by phone. A corrected proxy is requested. Any arrangements are made to insure that a

4


 

proper proxy is received in time to be voted (overnight delivery, fax, etc.). When securities are out on loan on record date, the custodian is requested to supply written verification.
4. Upon receipt of instructions from the proxy committee (see Administrative), the votes are cast and recorded for each account on an individual basis.
Records have been maintained on the Proxy Edge system. The system is backed up regularly.
Proxy Edge records include:
Security Name and Cusip Number
Date and Type of Meeting (Annual, Special, Contest)
Client Name
Adviser or Fund Account Number
Directors’ Recommendation
How GAMCO voted for the client on each issue
5. VAFs are kept alphabetically by security. Records for the current proxy season are located in the Proxy Voting Department office. In preparation for the upcoming season, files are transferred to an offsite storage facility during January/February.
6. Shareholder Vote Authorization Forms issued by Broadridge are always sent directly to a specific individual at Broadridge.
7. If a proxy card or VAF is received too late to be voted in the conventional matter, every attempt is made to vote on one of the following manners:
  VAFs can be faxed to Broadridge up until the time of the meeting. This is followed up by mailing the original form.
 
  When a solicitor has been retained, the solicitor is called. At the solicitor’s direction, the proxy is faxed.
8.   In the case of a proxy contest, records are maintained for each opposing entity.
 
9.   Voting in Person
a) At times it may be necessary to vote the shares in person. In this case, a “legal proxy” is obtained in the following manner:
  Banks and brokerage firms using the services at Broadridge:
     The back of the VAF is stamped indicating that we wish to vote in person. The forms are then sent overnight to Broadridge. Broadridge issues individual legal proxies and

5


 

sends them back via overnight (or the Adviser can pay messenger charges). A lead-time of at least two weeks prior to the meeting is needed to do this. Alternatively, the procedures detailed below for banks not using Broadridge may be implemented.
  Banks and brokerage firms issuing proxies directly:
 
    The bank is called and/or faxed and a legal proxy is requested.
All legal proxies should appoint:
“Representative of [Adviser name] with full power of substitution.”
b) The legal proxies are given to the person attending the meeting along with the following supplemental material:
  A limited Power of Attorney appointing the attendee an Adviser representative.
 
  A list of all shares being voted by custodian only. Client names and account numbers are not included. This list must be presented, along with the proxies, to the Inspectors of Elections and/or tabulator at least one-half hour prior to the scheduled start of the meeting. The tabulator must “qualify” the votes (i.e. determine if the vote have previously been cast, if the votes have been rescinded, etc. vote have previously been cast, etc.).
 
  A sample ERISA and Individual contract.
 
  A sample of the annual authorization to vote proxies form.
 
  A copy of our most recent Schedule 13D filing (if applicable).

6


 

Appendix A
Proxy Guidelines
PROXY VOTING GUIDELINES
GENERAL POLICY STATEMENT
It is the policy of GAMCO Investors, Inc. to vote in the best economic interests of our clients. As we state in our Magna Carta of Shareholders Rights, established in May 1988, we are neither for nor against management. We are for shareholders.
At our first proxy committee meeting in 1989, it was decided that each proxy statement should be evaluated on its own merits within the framework first established by our Magna Carta of Shareholders Rights. The attached guidelines serve to enhance that broad framework.
We do not consider any issue routine. We take into consideration all of our research on the company, its directors, and their short and long-term goals for the company. In cases where issues that we generally do not approve of are combined with other issues, the negative aspects of the issues will be factored into the evaluation of the overall proposals but will not necessitate a vote in opposition to the overall proposals.

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BOARD OF DIRECTORS
The advisers do not consider the election of the Board of Directors a routine issue. Each slate of directors is evaluated on a case-by-case basis.
Factors taken into consideration include:
  Historical responsiveness to shareholders
      This may include such areas as:
  -   Paying greenmail
 
  -   Failure to adopt shareholder resolutions receiving a majority of shareholder votes
  Qualifications
 
  Nominating committee in place
 
  Number of outside directors on the board
 
  Attendance at meetings
 
  Overall performance
SELECTION OF AUDITORS
In general, we support the Board of Directors’ recommendation for auditors.
BLANK CHECK PREFERRED STOCK
We oppose the issuance of blank check preferred stock.
Blank check preferred stock allows the company to issue stock and establish dividends, voting rights, etc. without further shareholder approval.
CLASSIFIED BOARD
A classified board is one where the directors are divided into classes with overlapping terms. A different class is elected at each annual meeting.
While a classified board promotes continuity of directors facilitating long range planning, we feel directors should be accountable to shareholders on an annual basis. We will look

8


 

at this proposal on a case-by-case basis taking into consideration the board’s historical responsiveness to the rights of shareholders.
Where a classified board is in place we will generally not support attempts to change to an annually elected board.
When an annually elected board is in place, we generally will not support attempts to classify the board.
INCREASE AUTHORIZED COMMON STOCK
The request to increase the amount of outstanding shares is considered on a case-by-case basis.
Factors taken into consideration include:
  Future use of additional shares
  -   Stock split
 
  -   Stock option or other executive compensation plan
 
  -   Finance growth of company/strengthen balance sheet
 
  -   Aid in restructuring
 
  -   Improve credit rating
 
  -   Implement a poison pill or other takeover defense
  Amount of stock currently authorized but not yet issued or reserved for stock option plans
 
  Amount of additional stock to be authorized and its dilutive effect
We will support this proposal if a detailed and verifiable plan for the use of the additional shares is contained in the proxy statement.
CONFIDENTIAL BALLOT
We support the idea that a shareholder’s identity and vote should be treated with confidentiality.
However, we look at this issue on a case-by-case basis.
In order to promote confidentiality in the voting process, we endorse the use of independent Inspectors of Election.

9


 

CUMULATIVE VOTING
In general, we support cumulative voting.
Cumulative voting is a process by which a shareholder may multiply the number of directors being elected by the number of shares held on record date and cast the total number for one candidate or allocate the voting among two or more candidates.
Where cumulative voting is in place, we will vote against any proposal to rescind this shareholder right.
Cumulative voting may result in a minority block of stock gaining representation on the board. When a proposal is made to institute cumulative voting, the proposal will be reviewed on a case-by-case basis. While we feel that each board member should represent all shareholders, cumulative voting provides minority shareholders an opportunity to have their views represented.
DIRECTOR LIABILITY AND INDEMNIFICATION
We support efforts to attract the best possible directors by limiting the liability and increasing the indemnification of directors, except in the case of insider dealing.
EQUAL ACCESS TO THE PROXY
The SEC’s rules provide for shareholder resolutions. However, the resolutions are limited in scope and there is a 500 word limit on proponents’ written arguments. Management has no such limitations. While we support equal access to the proxy, we would look at such variables as length of time required to respond, percentage of ownership, etc.
FAIR PRICE PROVISIONS
Charter provisions requiring a bidder to pay all shareholders a fair price are intended to prevent two-tier tender offers that may be abusive. Typically, these provisions do not apply to board-approved transactions.

10


 

We support fair price provisions because we feel all shareholders should be entitled to receive the same benefits.
Reviewed on a case-by-case basis.
GOLDEN PARACHUTES
Golden parachutes are severance payments to top executives who are terminated or demoted after a takeover.
We support any proposal that would assure management of its own welfare so that they may continue to make decisions in the best interest of the company and shareholders even if the decision results in them losing their job. We do not, however, support excessive golden parachutes. Therefore, each proposal will be decided on a case-by- case basis.
Note: Congress has imposed a tax on any parachute that is more than three times the executive’s average annual compensation.
ANTI-GREENMAIL PROPOSALS
We do not support greenmail. An offer extended to one shareholder should be extended to all shareholders equally across the board.
LIMIT SHAREHOLDERS’ RIGHTS TO CALL SPECIAL MEETINGS
We support the right of shareholders to call a special meeting.
CONSIDERATION OF NONFINANCIAL EFFECTS OF A MERGER
This proposal releases the directors from only looking at the financial effects of a merger and allows them the opportunity to consider the merger’s effects on employees, the community, and consumers.

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As a fiduciary, we are obligated to vote in the best economic interests of our clients. In general, this proposal does not allow us to do that. Therefore, we generally cannot support this proposal.
Reviewed on a case-by-case basis.
MERGERS, BUYOUTS, SPIN-OFFS, RESTRUCTURINGS
Each of the above is considered on a case-by-case basis. According to the Department of Labor, we are not required to vote for a proposal simply because the offering price is at a premium to the current market price. We may take into consideration the long term interests of the shareholders.
MILITARY ISSUES
Shareholder proposals regarding military production must be evaluated on a purely economic set of criteria for our ERISA clients. As such, decisions will be made on a case-by-case basis.
In voting on this proposal for our non-ERISA clients, we will vote according to the client’s direction when applicable. Where no direction has been given, we will vote in the best economic interests of our clients. It is not our duty to impose our social judgment on others.
NORTHERN IRELAND
Shareholder proposals requesting the signing of the MacBride principles for the purpose of countering the discrimination of Catholics in hiring practices must be evaluated on a purely economic set of criteria for our ERISA clients. As such, decisions will be made on a case-by-case basis.
In voting on this proposal for our non-ERISA clients, we will vote according to client direction when applicable. Where no direction has been given, we will vote in the best economic interests of our clients. It is not our duty to impose our social judgment on others.

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OPT OUT OF STATE ANTI-TAKEOVER LAW
This shareholder proposal requests that a company opt out of the coverage of the state’s takeover statutes. Example: Delaware law requires that a buyer must acquire at least 85% of the company’s stock before the buyer can exercise control unless the board approves.
We consider this on a case-by-case basis. Our decision will be based on the following:
  State of Incorporation
 
  Management history of responsiveness to shareholders
 
  Other mitigating factors
POISON PILL
In general, we do not endorse poison pills.
In certain cases where management has a history of being responsive to the needs of shareholders and the stock is very liquid, we will reconsider this position.
REINCORPORATION
Generally, we support reincorporation for well-defined business reasons. We oppose reincorporation if proposed solely for the purpose of reincorporating in a state with more stringent anti-takeover statutes that may negatively impact the value of the stock.
STOCK OPTION PLANS
Stock option plans are an excellent way to attract, hold and motivate directors and employees. However, each stock option plan must be evaluated on its own merits, taking into consideration the following:
  Dilution of voting power or earnings per share by more than 10%
 
  Kind of stock to be awarded, to whom, when and how much
 
  Method of payment

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  Amount of stock already authorized but not yet issued under existing stock option plans
SUPERMAJORITY VOTE REQUIREMENTS
Supermajority vote requirements in a company’s charter or bylaws require a level of voting approval in excess of a simple majority of the outstanding shares. In general, we oppose supermajority-voting requirements. Supermajority requirements often exceed the average level of shareholder participation. We support proposals’ approvals by a simple majority of the shares voting.
LIMIT SHAREHOLDERS RIGHT TO ACT BY WRITTEN CONSENT
Written consent allows shareholders to initiate and carry on a shareholder action without having to wait until the next annual meeting or to call a special meeting. It permits action to be taken by the written consent of the same percentage of the shares that would be required to effect proposed action at a shareholder meeting.
Reviewed on a case-by-case basis.

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Item 8. Portfolio Managers of Closed-End Management Investment Companies.
PORTFOLIO MANAGERS
A portfolio team manages The Gabelli Global Gold, Natural Resources & Income Trust, (the Fund). The individuals listed below are those who are primarily responsible for the day-to-day management of the Fund.
Caesar M. P. Bryan serves as the Gold Companies Portfolio Manager for the Fund and is primarily responsible for the day-to-day management of the Gold Companies portion of the Fund’s portfolio. Mr. Bryan is a Senior Vice President and Portfolio Manager with GAMCO Asset Management Inc. (a wholly owned subsidiary of GAMCO Investors, Inc.) since 1994.
Barbara G. Marcin serves as a Portfolio Manager for the Fund and is primarily responsible for the day-to-day management of the Natural Resources Companies portion of the Fund’s portfolio. Ms. Marcin joined GAMCO Investors, Inc. in 1999 as a Vice President and Portfolio Manager to manage larger capitalization value style portfolios.
Vincent Hugonnard-Roche serves as a Portfolio Manager for the Fund and is primarily responsible for the day-to-day management of the covered call portion of the Fund’s portfolio. Mr. Roche joined GAMCO Investors, Inc. in 2000 as Director of Quantitative Strategies and Head of Risk Management.
MANAGEMENT OF OTHER ACCOUNTS
The table below shows the number of other accounts managed by each Portfolio Manager and the total assets in each of the following categories: registered investment companies, other paid investment vehicles and other accounts as of December 31, 2010. For each category, the table also shows the number of accounts and the total assets in the accounts with respect to which the advisory fee is based on account performance.
                     
                    Total Assets in
                No. of Accounts   Accounts where
        Total       where Advisory Fee   Advisory Fee is
Name of Portfolio Manager or       No. of Accounts       is Based on   Based on
Team Member   Type of Accounts   Managed   Total Assets   Performance   Performance
1. Caesar M.P. Bryan
  Registered Investment Companies:   4   852.0M   0   0
 
                 
 
  Other Pooled Investment Vehicles:   2   10.4M   2   10.4M
 
                 
 
  Other Accounts:   10   64.3M   0   0
 
                 
2. Barbara G. Marcin
  Registered Investment Companies:   3   2.0B   1   1.9B
 
                 
 
  Other Pooled Investment Vehicles:   1   36.0K   1   36.0K
 
                 
 
  Other Accounts:   48   157.8M   0   0
 
                 
3. Vincent Hugonnard-Roche
  Registered Investment Companies:   0   0   0   0
 
                 
 
  Other Pooled Investment Vehicles:   1   25.4M   0   0
 
                 
 
  Other Accounts:   1   339.9K   0   0

 


 

POTENTIAL CONFLICTS OF INTEREST
As reflected above, the Portfolio Managers manage accounts in addition to the Fund. Actual or apparent conflicts of interest may arise when a Portfolio Manager also has day-to-day management responsibilities with respect to one or more other accounts. These potential conflicts include:
ALLOCATION OF LIMITED TIME AND ATTENTION. As indicated above, the Portfolio Managers manage multiple accounts. As a result, he/she will not be able to devote all of their time to the management of the Fund. A Portfolio Manager, therefore, may not be able to formulate as complete a strategy or identify equally attractive investment opportunities for each of those accounts, as might be the case if he/she were to devote all of his/her attention to the management of only the Fund.
ALLOCATION OF LIMITED INVESTMENT OPPORTUNITIES. As indicated above, the Portfolio Managers manage accounts with investment strategies and/or policies that are similar to the Fund. In these cases, if the Portfolio Manager identifies an investment opportunity that may be suitable for multiple accounts, the Fund may not be able to take full advantage of that opportunity because the opportunity may be allocated among all or many of these accounts or other accounts managed primarily by other Portfolio Managers of the Adviser, and their affiliates. In addition, in the event a Portfolio Manager determines to purchase a security for more than one account in an aggregate amount that may influence the market price of the security, accounts that purchased or sold the security first may receive a more favorable price than accounts that made subsequent transactions.
PURSUIT OF DIFFERING STRATEGIES. At times, a Portfolio Manager may determine that an investment opportunity may be appropriate for only some of the accounts for which he/she exercises investment responsibility, or may decide that certain of the funds or accounts should take differing positions with respect to a particular security. In these cases, the Portfolio Manager may execute differing or opposite transactions for one or more accounts which may affect the market price of the security or the execution of the transaction, or both, to the detriment of one or more other accounts.
VARIATION IN COMPENSATION. A conflict of interest may arise where the financial or other benefits available to the Portfolio Manager differ among the accounts that he or she manages. If the structure of the Adviser’s management fee or the Portfolio Manager’s compensation differs among accounts (such as where certain accounts pay higher management fees or performance-based management fees), the Portfolio Manager may be motivated to favor certain accounts over others. The Portfolio Manager may also be motivated to favor accounts in which he or she has an investment interest, or in which the Adviser, or their affiliates have investment interests. Similarly, the desire to maintain assets under management or to enhance a Portfolio Manager’s performance record or to derive other rewards, financial or otherwise, could influence the Portfolio Manager in affording preferential treatment to those accounts that could most significantly benefit the Portfolio Manager. For example, as reflected above, if a Portfolio Manager manages accounts, which have performance fee arrangements, certain portions of their compensation will depend on the achievement of performance milestones on those accounts. The Portfolio Manager could be incented to afford preferential treatment to those accounts and thereby by subject to a potential conflict of interest.
The Adviser, and the Funds have adopted compliance policies and procedures that are designed to address the various conflicts of interest that may arise for the Adviser and their staff members. However, there is no guarantee that such policies and procedures will be able to detect and prevent every situation in which an actual or potential conflict may arise.
COMPENSATION STRUCTURE FOR THE PORTFOLIO MANAGERS OF THE ADVISER
The compensation of the Portfolio Managers for the Fund is structured to enable the Adviser to attract and retain highly qualified professionals in a competitive environment. The Portfolio Managers receive a compensation package that includes a minimum draw or base salary, equity-based incentive compensation via awards of stock options, and incentive based variable compensation based on a percentage of net revenue received by the Adviser for managing the Fund to the extent that the amount exceeds a minimum level of compensation. Net revenues are

 


 

determined by deducting from gross investment management fees certain of the firm’s expenses (other than the Portfolio Managers’ compensation) allocable to the Fund (the incentive-based variable compensation for managing other accounts is also based on a percentage of net revenues to the investment adviser for managing the account). This method of compensation is based on the premise that superior long-term performance in managing a portfolio should be rewarded with higher compensation as a result of growth of assets through appreciation and net investment activity. The level of equity-based incentive and incentive-based variable compensation is based on an evaluation by the Adviser’s parent, GBL, of quantitative and qualitative performance evaluation criteria. This evaluation takes into account, in a broad sense, the performance of the accounts managed by the Portfolio Manager, but the level of compensation is not determined with specific reference to the performance of any account against any specific benchmark. Generally, greater consideration is given to the performance of larger accounts and to longer term performance over smaller accounts and short-term performance.
OWNERSHIP OF SHARES IN THE FUND
Caesar M. P. Bryan, Barbara G. Marcin, and Vincent Hugonnard-Roche owned $10,001 — $50,000, $10,001 - $50,000 and $0, respectively, of shares of the Trust as of December 31, 2010.
(b)   Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
REGISTRANT PURCHASES OF EQUITY SECURITIES
                 
            (c) Total Number of   (d) Maximum Number (or
            Shares (or Units)   Approximate Dollar Value) of
    (a) Total Number of       Purchased as Part of   Shares (or Units) that May Yet
    Shares (or Units)   (b) Average Price Paid   Publicly Announced Plans   Be Purchased Under the Plans
Period   Purchased   per Share (or Unit)   or Programs   or Programs
Month #1
07/01/10 through
07/31/10
  Common — N/A

Preferred Series A — N/A
  Common — N/A

Preferred Series A — N/A
  Common — N/A

Preferred Series A — N/A
  Common — 46,593,021

Preferred Series A — 3,955,687
 
               
Month #2
08/01/10 through
08/31/10
  Common — N/A

Preferred Series A — N/A
  Common — N/A

Preferred Series A — N/A
  Common — N/A

Preferred Series A — N/A
  Common — 48,711,033

Preferred Series A — 3,955,687
 
               
Month #3
09/01/10 through
09/30/10
  Common — N/A

Preferred Series A — N/A
  Common — N/A

Preferred Series A — N/A
  Common — N/A

Preferred Series A — N/A
  Common — 50,305,733

Preferred Series A — 3,955,687
 
               
Month #4
10/01/10 through
10/31/10
  Common — N/A

Preferred Series A — N/A
  Common — N/A

Preferred Series A — N/A
  Common — N/A

Preferred Series A — N/A
  Common — 51,984,315

Preferred Series A — 3,955,687

 


 

                 
            (c) Total Number of   (d) Maximum Number (or
            Shares (or Units)   Approximate Dollar Value) of
    (a) Total Number of       Purchased as Part of   Shares (or Units) that May Yet
    Shares (or Units)   (b) Average Price Paid   Publicly Announced Plans   Be Purchased Under the Plans
Period   Purchased   per Share (or Unit)   or Programs   or Programs
Month #5
11/01/10 through
11/30/10
  Common — N/A

Preferred Series A — N/A
  Common — N/A

Preferred Series A — N/A
  Common — N/A

Preferred Series A — N/A
  Common — 54,140,475

Preferred Series A — 3,955,687
 
               
Month #6
12/01/10 through
12/31/10
  Common — N/A

Preferred Series A — N/A
  Common — N/A

Preferred Series A — N/A
  Common — N/A

Preferred Series A — N/A
  Common — 55,911,850

Preferred Series A — 3,955,687
 
               
Total
  Common — N/A

Preferred Series A — N/A
  Common — N/A

Preferred Series A — N/A
  Common — N/A

Preferred Series A — N/A
  N/A


 
Footnote columns (c) and (d) of the table, by disclosing the following information in the aggregate for all plans or programs publicly announced:
a.   The date each plan or program was announced — The notice of the potential repurchase of common and preferred shares occurs quarterly in the Fund’s quarterly report in accordance with Section 23(c) of the Investment Company Act of 1940, as amended.
 
b.   The dollar amount (or share or unit amount) approved — Any or all common shares outstanding may be repurchased when the Fund’s common shares are trading at a discount of 7.5% or more from the net asset value of the shares.
 
    Any or all preferred shares outstanding may be repurchased when the Fund’s preferred shares are trading at a discount to the liquidation value of $25.00.
 
c.   The expiration date (if any) of each plan or program — The Fund’s repurchase plans are ongoing.
 
d.   Each plan or program that has expired during the period covered by the table — The Fund’s repurchase plans are ongoing.
 
e.   Each plan or program the registrant has determined to terminate prior to expiration, or under which the registrant does not intend to make further purchases. — The Fund’s repurchase plans are ongoing.
Item 10. Submission of Matters to a Vote of Security Holders.
On December 3, 2010, the Board of Trustees of The Gabelli Global Gold, Natural Resources & Income Trust (the “Fund”) amended and restated in its entirety the bylaws of the Fund (the “Amended and Restated Bylaws”). The Amended and Restated Bylaws were deemed effective December 3, 2010.
Item 11. Controls and Procedures.
  (a)   The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 


 

  (b)   There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
      (a)(1) Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.
 
      (a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
 
      (a)(3) Not applicable.
 
      (b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto.

 


 

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.
         
(registrant) The Gabelli Global Gold, Natural Resources & Income Trust
 
By (Signature and Title)*  /s/ Bruce N. Alpert    
  Bruce N. Alpert, Principal Executive Officer   
Date 3/10/11     
 
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 (Signature and Title)*  /s/ Bruce N. Alpert    
  Bruce N. Alpert, Principal Executive Officer   
 
Date 3/10/11 
   
 
     
By (Signature and Title)*  /s/ Agnes Mullady    
  Agnes Mullady, Principal Financial Officer and Treasurer     
 
Date 3/10/11 
   
 
 
*   Print the name and title of each signing officer under his or her signature.