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Republican Congressman Denny Rehberg is pushing for new eagle coins, which would contain one troy ounce of 0.9995 palladium and carry a legal tender face value of US$25, through a bill called the American Eagle Palladium Bullion Coin Act of 2010.
By Ethan Ribalkin–Exclusive to Palladium Investing News
The Montana-based Republican is pushing for new eagle coins, which would contain one troy ounce of 0.9995 palladium and carry a legal tender face value of US$25, according to the official bill displayed on Denny Rehberg’s website.
The bill, referred to as the American Eagle Palladium Bullion Coin Act of 2010, seeks to acquire bullion for the coins by purchasing palladium mined from natural deposits in the United States, or in a territory or possession of the United States.
“If no such palladium is available or if it is not economically feasible to obtain such palladium, the Secretary may obtain the palladium for the palladium coins … from other available sources,” the bill states.
The bill adds that the Secretary will pay market value for the palladium, which currently costs $557 U.S. per ounce, according to palladiumprice.org.
Stillwater Mining Co. (NYSE:SWC), a U.S. producer of palladium, expects the cost of the metal to rise to its highest value in a decade.
In a story published by Bloomberg, Stillwater Chief Executive Officer Francis McAllister predicted that auto-industry use of palladium will increase as catalytic-converted manufactures begin using the cheaper metal instead of expensive platinum.
In order to become law, the bill H.R. 6166 must be approved by both the House and the Senate, and then signed by President Obama.
Introduced on September 22, the bill calls for the artwork of Adolph Alexander Weinman, the creator of the American eagle silver coin that contains his “Walking Liberty” design, which appeared on the “Mercury Dime” produced between 1916 and 1945.
As of this publication, bill H.R. 6166 has been referred to the House Committee on Financial Services for further action.