SOFAZ plans to purchase 30 tons of gold

Within two years the Azerbaijan State Oil Fund (SOFAZ) plans to accumulate up to 30 tons of gold, SOFAZ head Shahmar Movsumov told media. “SOFAZ will deliver the first batch of the previously purchased physical gold to Azerbaijan by late 2012” SOFAZ head added.

Movsumov said that the total weight of the first batch of gold, which is planned to bring into the country, will hit about one ton. Bringing a batch weighting more than a ton is a complex process, as airlines do not transport large amounts of the precious metal.

Movsumov added that the Fund has already completed the negotiations on the gold storage with the Azerbaijani Central Bank. The Central Bank's opportunities and the high level of cooperation between the two organizations allow keeping SOFAZ's gold assets.

From February 1, 2012, SOFAZ has bought around 10 tons of physical gold. SOFAZ acquires physical gold on the London market of precious metals. The London-based warehouse of bank JP Morgan is used for temporary storage of this gold currently on the basis of experience and minimizing costs.

Investment policy for 2012 allows SOFAZ to keep in gold up to 5% of its investment portfolio. SOFAZ started buying physical gold from 1 February 2012, and by 1 July it accumulated it for $343.14 million - 6.847 tons (220,146 troy ounces). By the end of 2012 the SOFAZ gold reserve fund will reach 240,000 ounces (7.5 tons).


/AzerTAc/