SOFAZ Buys Physical Gold
Sovereign investors view gold as a store of value, an alternative currency to dollars, yen, and euros. Sovereign funds in the Middle East feel that Western nations have excessive fiscal debt, which leads to quantitative easing to make it easier to service debts.
Azerbaijan’s State Oil Fund (SOFAZ) is diversifying their portfolio by planning to have 7.5 tons of gold reserves by the end of 2012. Overall, SOFAZ would like to accumulate up to 30 tons of gold over the next two years. According to reported statistics from SOFAZ, gold holdings amounted to 6.847 tons as of July 1, 2012.
SOFAZ’s gold is planned on being stored in Azerbaijan’s central bank.
SOFAZ can invest in gold bars that conform to the requirements of the London Bullion Market Association. Up to 5% of their portfolio can be allocated to gold.