Ben Bernanke, we''ll be watching you

Section:

9:48p ET Wednesday, May 3, 2006

Dear Friend of GATA and Gold:

You have to love financial journalism like what
is appended here from the London Telegraph. To
raise the prospect of a crash in copper it
relies on an anonymous source whose personal
interest in the story cannot be evaluated and
so has to raise suspicion. Is the source
pursuing the public interest, or is he just
talking his book, trying to prompt the event
he is predicting? And what is the newspaper's
interest in picking out this particular
anonymous source? Is it the public interest,
or is the paper's editor or publisher short
copper himself now?

That copper has become the focus of much
speculation -- that it has been, in effect,
monetized -- probably won't be denied. But
couldn't that issue be addressed by experts
and market participants willing to be
identified?

The precious metals aren't the only things
that are manipulated in the markets. The
news media are too. But seldom is it as
blatant as it is here. The Telegraph has
been a better paper than this.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Copper Price 'Set to Plunge by 20%'

By Tom Stevenson
The Telegraph, London
Thursday, May 4, 2006

http://www.telegraph.co.uk/money/main.jhtml?
xml=/money/2006/05/04/cnlme04.xml&menuId=242&sSheet=/money/2006/05/04
/ixcitytop.html

The soaring price of copper could drop by a fifth in the next two to
three months, a senior trader on the floor of the London Metal
Exchange has warned. The dealer, who asked to remain anonymous, said
recent market fluctuations were typical of the trading pattern prior
to a significant change of direction.

"I expect a 20 percent correction. The market will be volatile and
illiquid for a while before it cracks," he said. The LME accounts
for around 90 percent of the world's trade in copper, dwarfing rival
markets in New York and Shanghai.

The price of copper has risen by 60 percent this year, with the cash
price for immediate delivery reaching a peak of $7,391 a tonne this
week, a five-fold increase on the $1,400 at which the metal traded
only four years ago. At yesterday's lunchtime fix of $7,231, copper
has generated huge profits for the speculative funds that have piled
into commodities but caused pain for industrial users.

The scepticism on the LME's trading floor is confirmed by the prices
being quoted by brokers for delivery on the longest contracts, which
are much lower than the current cash price. "Copper is the only
commodity in the world where you can buy for five-year delivery at a
45 percent discount," the trader said. "The market is saying the
current price is unsustainable or that supply will kick in to meet
demand."

An escalation in the volume of speculative trading and the growing
use of commodities as a diversification for pension funds away from
equities and bonds have contributed to the soaring price of the
metals traded on the LME. It is estimated that 80 percent of trades
derive from financial rather than industrial traders.

Big investors such as Hermes, which manages the retirement funds of
BT and the Post Office, Calpers, the largest public sector fund in
the US, and Sainsbury's pension fund have all announced plans to
increase their exposure to commodities.

The International Wrought Copper Council, which represents copper
fabricators, wrote to the LME and the Financial Services Authority,
saying: "This investment or speculative activity has come to
dominate the market, tending to divorce it from its industrial base."

For recent entrants to the market, a downward lurch like that
expected by traders would be a stomach-churning reminder that the
rise and rise of commodity prices in recent years is not one-way
traffic.

Investors are divided between those who believe metal prices are in
the early stages of a multi-year upward "super-cycle," driven by
demand from the developing economies of China and India, and those
who think recent rises are the last gasp of an unsustainable bubble.

Merrill Lynch recently compared the price performance of commodities
with listed futures, including copper, with those such as rubber and
steel that cannot be traded so easily using derivatives. On the
basis of this analysis it concluded the influence of speculators on
the market was "unprecedented" and analyst Richard Bernstein warned
that "commodity prices always fell in the 12-month period subsequent
to extreme commodity speculation."

Trading has soared over the past 18 months at the famously raucous
LME, where a twice-daily round of five-minute "rings" sets the
prices of six metals -- zinc, tin, lead, copper, aluminium, and
nickel. During a short but intense dealing session, traders from 11
member firms face each other off from positions on a circular red
leather-upholstered banquette.

----------------------------------------------------

To subscribe to GATA's dispatches, send an e-mail to:

gata-subscribe@yahoogroups.com

To unsubscribe, send an e-mail to:

gata-unsubscribe@yahoogroups.com

Caution: America Online prohibits delivery of GATA
dispatches to AOL e-mailboxes.

----------------------------------------------------

RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS

Free sites:

http://www.jsmineset.com

http://www.cbs.marketwatch.com

http://www.mineweb.com/

http://www.gold-eagle.com/

http://www.kitco.com/

http://www.usagold.com/

http://www.usagold.com/amk/usagoldmarketupdate.html

http://www.GoldSeek.com/

http://www.GoldReview.com/

http://www.capitalupdates.com/

http://www.DailyReckoning.com

http://www.goldenbar.com/

http://www.silver-investor.com

http://www.thebulliondesk.com/

http://www.sharelynx.com/

http://www.mininglife.com/

http://www.financialsense.com

http://www.goldensextant.com

http://www.goldismoney.info/index.html

http://www.howestreet.com

http://www.depression2.tv

http://www.moneyfiles.org/

http://www.howestreet.com

http://www.minersmanual.com/minernews.html

http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html

http://www.goldcolony.com

http://www.miningstocks.com

http://www.mineralstox.com

http://www.freemarketnews.com

http://www.321gold.com

http://www.SilverSeek.com

http://www.investmentrarities.com

http://www.kereport.com
(Korelin Business Report -- audio)

http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)

http://www.resourceinvestor.com

http://www.miningmx.com

http://www.prudentbear.com

http://www.dollarcollapse.com

http://www.kitcocasey.com

http://000999.forumactif.com/

http://www.golddrivers.com/

http://www.goldpennystocks.com/

http://www.oroyfinanzas.com/

Subscription sites:

http://www.lemetropolecafe.com/

http://www.goldinsider.com/

http://www.hsletter.com

http://www.interventionalanalysis.com

http://www.investmentindicators.com/

Eagle Ranch discussion site:

http://os2eagle.net/checksum.htm

Ted Butler silver commentary archive:

http://www.investmentrarities.com/

----------------------------------------------------

COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS

Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
http://www.blanchardonline.com

Centennial Precious Metals
Box 460009
Denver, Colorado 80246-0009
1-800-869-5115
http://www.USAGOLD.com
Michael Kosares, Proprietor
cpm@usagold.com

Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
http://www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net

El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
http://www.eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net

Gold & Silver Investments Ltd.
Mespil House
37 Adelaide Rd
Dublin 2
Ireland
+353 1 2315260/6
Fax: +353 1 2315202
http://www.goldinvestments.org
info@gold.ie

Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
http://www.gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com

Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
http://www.kitco.com

Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
http://www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com

Lone Star Silver Exchange
1702 S. Highway 121
Suite 607-111
Lewisville, Texas 75067
214-632-8869
http://www.discountsilverclub.com

MRCS Canada
12303-118 Ave. NW
Edmonton, Alberta T5L 2K2
Canada
http://www.mrcscanada.com
Michael Riedel, Proprietor
1-877-TRY-MRCS
1-877-879-6727
mrcscanada@shaw.ca

Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
http://www.milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel

Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
http://www.mocoin.com

Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
http://www.buysilvernow.com

Richard Nachbar Rare Coins
5820 Main St., Suite 601
Williamsville, N.Y. 14221-8232
877-622-4227
http://www.CoinExpert.com
nachbar@coinexpert.com

Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com

The Moneychanger
Box 178
Westpoint, Tennessee 38486
http://www.the-moneychanger.com
Franklin Sanders
1-888-218-9226, 931-766-6066

----------------------------------------------------

HOW TO HELP GATA

If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.

By check:

Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA

By credit card (MasterCard, Visa, and
Discover) over the Internet:

http://www.gata.org/creditcard.html

By GoldMoney:

http://www.GoldMoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L

Donors of $200 or more will receive copies
of "The ABCs of Gold Investing" by Michael
Kosares, proprietor of Centennial Precious
Metals in Denver, Colorado, and "The Coming
Collapse of the Dollar" by James Turk and
John Rubino.

GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.