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products, livestock products and precious metals. The wide range of constituent commodities provides the S&P GSCI with a high level of diversification, across subsectors and within each subsector. This diversity mutes the impact of highly idiosyncratic events, which have large implications for the individual commodity markets, but are minimised when aggregated to the level of the S&P GSCI.
101:, who believed that inflation was caused by "too many dollars chasing after too few goods". She concluded that the indexes were apparently thus causing oil prices to rise. Her article was dropped after a man from the FIA magazine showed it "to people around Washington" and told her it would be "politically explosive".
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The diversity of the S&P GSCI's constituent commodities, along with their economic weighting allows the index to respond in a stable way to world economic growth, even as the composition of global growth changes across time. When industrialised economies dominate world growth, the metals sector
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The S&P GSCI contains as many commodities as possible, with rules excluding certain commodities to maintain liquidity and investability in the underlying futures markets. The index currently comprises 24 commodities from all commodity sectors - energy products, industrial metals, agricultural
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Production weighting is a quintessential attribute for the index to be a measure of investment performance. This is achieved by assigning a weight to each asset based on the amount of capital dedicated to holding that asset just as market capitalisation is used to assign weights to components of
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The S&P GSCI is a world-production weighted index that is based on the average quantity of production of each commodity in the index, over the last five years of available data. This allows the S&P GSCI to be a measure of investment performance as well as serve as an economic indicator.
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trade magazine about the indexes. She concluded the massive amount of money in the indexes following the oil futures market dwarfed the actual oil futures market, by around 5 to 1. She alluded to the theories of
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of the GSCI generally responds more than the agricultural components. Conversely, when emerging markets dominate world growth, petroleum-based commodities and agricultural commodities tend to be more responsive.
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to make the case. For example, the report points out that even commodities without futures markets also saw price rises during the period. However, counter-arguments have been made that the commodities
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equity indices. Since the appropriate weight assigned to each commodity is in proportion to the amount of that commodity flowing through the economy, the index is also an economic indicator.
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43:, who currently own and publish it. Futures of the S&P GSCI use a multiple of 250. The index contains a much higher exposure to energy than other
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and as a measure of commodity performance over time. It is a tradable index that is readily available to market participants of the
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S&P GSCI Components and Dollar
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Organisation for
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515:S&P GSCI Index (Official website)
444:Standard & Poor's Commodity Index
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439:Rogers International Commodity Index
114:Commodity Futures Trading Commission
39:. In 2007, ownership transferred to
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429:Dow Jones-UBS Commodity Index
25:Goldman Sachs Commodity Index
94:Futures Industry Association
475:Clearing the usual suspects
33:Chicago Mercantile Exchange
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488:"S&P GSCI Methodology"
127:World Development Movement
49:Bloomberg Commodity Index
112:that used data from the
535:Commodity price indices
45:commodity price indices
133:Components and weights
125:futures markets: the
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90:Leah McGrath Goodman
16:Investment benchmark
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70:Economic weighting
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342:Natural Gas
284:Heating Oil
202:Live Cattle
161:Agriculture
85:Controversy
497:2020-05-06
463:The Asylum
450:References
291:LME Nickel
220:LME Copper
275:Lean Hogs
167:Livestock
529:Category
320:LME Zinc
302:Soybeans
258:LME Lead
252:Gasoline
418:See all
119:without
380:Coffee
330:Cotton
314:Gasoil
279:2.05%
244:1.30%
227:Silver
216:18.41%
206:3.90%
180:25.31%
170:7.25%
164:15.88%
152:10.65%
146:61.71%
143:Energy
491:(PDF)
407:0.34%
404:Cocoa
383:0.65%
359:1.52%
356:Sugar
345:3.24%
333:1.26%
323:1.12%
317:5.95%
305:3.11%
295:0.80%
287:4.27%
271:4.90%
261:0.68%
255:4.53%
236:1.25%
230:0.42%
224:4.36%
198:2.85%
192:4.08%
186:3.69%
158:4.50%
268:Corn
250:RBOB
189:Gold
123:with
19:The
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