Palladium Coin Program

Finally!

Two years ago when I got back into coin collecting after a few years away I was surprised by the astronomical rise in platinum. On Kitco's website for precious metals prices they have palladium listed just below platinum and it was hard not to see that palladium was trading for a small fraction of platinum. Further, through an issue of Coin World I saw that the Canadians had started a palladium bullion coin program (1 oz. only).

Along with my return to coin collecting came my love of the proof platinum coins, by now a super premium product from the mint and no small task to acquire. At the time I had wondered if at some point the government would do one of two things: 1) Replace the current platinum program with a more affordable palladium program. This would be a boon for the mint since platinum had increased in price 5-fold (currently 5-fold but less in 2006) since the introduction of the program in 1997 and had severely depressed the number of coins sold. 2) Compliment the platinum program with a palladium program to fill a gap between platinum/gold and silver.

Alas, no action was seen.

Until now.

HR 5614 has filled that void. A unanimous decision in the House now waits for Senate approval. This will be a very interesting program and I mean interesting in both good and bad ways.

Let's start with the negative:
1) The mint has the option to mint these coins to the same specifications but in gold in 2009 only pushing a palladium coin to 2010. This is a huge gamble. Legislation has been passed to mint a palladium coin that would be a cheaper alternative to platinum but if the coin doesn't hit the market for two years, palladium could rival gold or platinum in price and thus not be any more accessible to lower budgeted collectors and suffer from the same problem as the platinum coins.

2) The design is to recreate Augustus Saint-Gaudens' extremely high relief gold double eagle of 1907. However, the planchet size dictated in the legislation calls for the diameter of an eagle a 7mm difference in size. It seems counterintuitive to mint a stunning design in extremely high relief on a planchet smaller than the original coin (yes, one was struck on a double thick eagle planchet). Its like taking an Ansel Adams and putting it on a post card.

3) No fractional coins.

But the pluses:
1) Augustus Saint-Gaudens iconic design in its *mostly* original form (the In God We Trust motto will appear on the palladium coin despite not being present on the 1907 coins).

2) Extremely high relief. I once held just a high relief specimen of this coin and it was absolutely magnificent.

3) Should be affordable to more people to enjoy this amazing design.

I am going to be intrigued to see what happens in the next few weeks and months as this bill is considered in the Senate. The only real change I would like to see is to use a larger planchet for the coin. The original 34mm makes more sense historically and artistically.