What is GSCI Index?
GSCI is the Goldman Sachs Commodity Index and serves as a benchmark for investment in the commodity markets and as a measure of commodity performance. It is a tradable index which is available to market participants of the Chicago Mercantile Exchange.
Uses of GSCI Index
This Index is used to measure the supply and demand of a bundle of commodities. These include energy, industrial metals, precious metals, agriculture and livestock.
Risks of the GSIC Index
All futures contracts will feature the same risk through the direction in which you anticipate the contract to rise or fall. If you anticipate a currency to increase in value and it ends up falling in value. The long position that you hold will also fall in value.