Baku: The State Oil Fund of Azerbaijan (SOFAZ) is planning to increase the share of gold in its investment portfolio to 25% this year, SOFAZ stated in response to APA-Economics’ inquiry.

According to Azeri-Press News Agency, the amount of gold purchased during the current year, in line with the Investment Policy, will depend on the price of gold on the market as of the relevant date. The Fund emphasized that gold is considered a reliable investment instrument that preserves its value over the long term and serves as an effective defense mechanism against inflation risk.

The Fund highlighted that amid geopolitical tensions and instability in global markets, increasing gold reserves is strategically important for risk reduction and diversifying foreign currency reserves. Overall investments in gold in the financial markets in 2024 increased by 25%, reaching 1,180 tons compared to 2023, marking the highest indicator in the last four years.

It should be noted that by the end of 2024, the amount of gold purchased by SOFAZ made up 146.6 tons, accounting for 20.6% of the portfolio based on the market price at the relevant date. According to the investment policy set by the Fund, the maximum investment in gold can be up to 25% of the total value of the investment portfolio. The Fund aims to bring its gold portfolio to this maximum limit.