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COM: Industrial metals help S&P GSCI index rise 13.48%
 
NEW YORK (Commodity Online): Standard & Poor's, the world's leading index provider, announced on Wednesday that the S&P GSCI increased 0.86% in December for a 2009 gain of 13.48%. Industrial metals led the Index in 2009 with a gain of 82.42% as recorded by the S&P GSCI Industrial Metals Index. For the decade, the S&P GSCI posted a cumulative total return of 63.69% led by a 265.84% increase in the S&P GSCI Precious Metals Index.

"Coinciding with an approximate 1/4 devaluation of the U.S. Dollar since 1999, the S&P GSCI Precious Metals Index was the best performing sector within the S&P GSCI during the decade," says Michael McGlone, Director of Commodity Indexing at Standard & Poor's and author of the Market Attributes Commodities posted monthly to www.spgsci.standardandpoors.com. "The opportunity cost of holding non-income producing physical assets was certainly enhanced during the decade as the U.S. government benchmark 2-year note declined from a yield of 6.21% at the end of 1999 to 1.14% at the conclusion of 2009."

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The year 2009 was notable for the outperformance of commodity indices designed to alleviate the negative impact of rolling into contango. During the year, the S&P GSCI Enhanced Index increased 21.63% and the S&P GSCI 3-Month Forward Index increased 20.79%. Decade-to-date, these indices posted solid, pro-forma total returns of +272.50% and +287.36%, respectively
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