The State Oil Fund of the Republic of Azerbaijan (SOFAZ) announced that it sold 22.1 tons of gold in the first quarter of 2026. With this, the Fund's gold reserves decreased from 200 tons at the beginning of the year to 178.1 tons. This reduction was the first such instance since our country began increasing its gold reserves in 2012.
Modern.az sent an inquiry to the State Oil Fund regarding the reason for selling a part of its gold reserves. In response to the inquiry, the Oil Fund linked the gold sale to exceeding certain established parameters.
“Since the beginning of 2026, the price of gold has significantly increased, exceeding 5,000 US dollars per ounce. There has been no change in the volume of the gold position in the portfolio, but as a result of the price increase, the weight of that asset within the portfolio exceeded the target allocation and the upper limit of the allowed deviation interval stipulated in the approved Investment Policy. This situation created a basis for portfolio rebalancing, stemming not from a strategic re-evaluation of the asset, but from the necessity to keep the portfolio within defined parameters. The executed sale operation should not be regarded as a change in the long-term strategic position regarding gold, but as an integral part of disciplined risk management in accordance with the requirements of the Investment Policy.”
It was stated that the difference between the purchase price and the sale price of gold was converted into profit.
“In terms of financial results, the difference between the relatively low average purchase cost and current high market prices has been converted into significant realized capital gains,” the statement said.
It should be noted that Bloomberg agency wrote that the 22 tons of gold sold by the Oil Fund were valued at 3 billion US dollars.
