American Palladium Eagle Proposed

Legislation was recently introduced seeking the production of American Palladium Eagle bullion and collector coins. This comes two months after testimony was delivered at a House subcommittee meeting, which cited the desire among collectors and investors for such an offering.

The bill H.R. 6166 American Eagle Palladium Bullion Coin Act of 2010 was introduced on September 22 by Rep. Dennis Rehberg of Montana, where most domestic palladium mining takes place.

In 2008 and 2009, bills had been introduced in both the House of Representatives and the Senate seeking palladium bullion coins carrying Augustus Saint Gaudens' design for the 1907 Ultra High Relief Double Eagle. One of the 2008 bills was passed in the House, but none of the others managed to move forward.

As was the case with previous bills, the current bill includes some unusual and oddly specific requirements for the palladium coins. On the other hand, it also manages to address some of the current issues which complicate other US Mint bullion coins programs.

The bill H.R. 6166 includes the following requirements for the proposed American Palladium Eagles:

- A study to analyze the market for palladium bullion investments must be performed by a reputable independent third party to ensure adequate demand for the offering.

- Bullion for the Palladium Eagles must be acquired from natural deposits in the United States, within one year after the month in which the ore was mined. If no palladium is available from this source or it is not economically feasible, other available sources may be used.

- The coins would carry a face value of $25 and contain one ounce of .9995 fine palladium. Size and thickness are to be determined by the Secretary of the Treasury.

- The obverse of the coins would feature a high relief likeness of Adolph A. Weinman's Mercury Dime. The reverse would bear a high relief version of the 1907 American Institute of Architects Medal, also designed by Weinman. (Here is the only image of the medal that I could find.)

- Coins may be produced in both uncirculated and proof versions. (I believe uncirculated refers to "collectible uncirculated" versions as opposed to bullion versions.) If these coins are issued, to the greatest extent possible, the surface treatment of each year's proof and uncirculated coin should differ in some material way from that of the preceding year.

- Any United States Mint facility other than the West Point Mint can be used to strike coins minted in versions other than proof. If proof versions are struck, the proof coins shall only be produced at the West Point Mint.

Palladium is currently trading at $559 per ounce, representing a gain of 37.66% for the year to date. During 2009, palladium recorded a gain of 114.75%. The all time high price was reached in $1,090 per ounce was reached in January 2001.