American Palladium Eagle Coins Recommended

Source:

"Coin offers investors an interesting price point for market entry."

The July 20 Congressional subcommittee hearing about the "The State of U.S. Coins and Currency" brought forth an interesting topic to the world of investing and numismatics—an idea for the United States Mint to produce American Palladium Eagle Bullion Coins.

The topic was not discussed to the same degree as changing coin compositions or producing proof American Silver Eagles at the expense of the bullion versions. However, it tied into the latter as a partial solution one panel member proposed to help alleviate the current American Silver Eagle crunch.

Michael Clark, Diamond State Depository President, commented, "A one-troy ounce palladium coin would offer the precious metals investor an interesting price point for market entry. While gold presently trades around the $1,200 level, and platinum over $1,500, palladium is trading in the spot market in the range of $460 – $475."

Palladium coins are not new to the world of numismatics. A brief look at history shows that several countries started striking some form of a palladium coin decades ago. However, most of these were commemorative. Canada had been the only country to strike a palladium bullion coin when it introduced the Palladium Maple Leaf back in 2005. Unfortunately, demand for the strike waned after it first became available and it was discontinued in 2007. The coin did make a return last year, however, when the Royal Canadian Mint perceived a renewed interest in the unique bullion product.

Despite passing the House unanimously, no action was taken by the Senate. No further action was taken by the committee at that time, but it does leave open the possibility of the Mint being directed to strike the coin in the future.

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