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All that glitters might be frozen pork (or palladium).
RWB
Posts: 8,082 ✭
Flathead Beacon (MT)
A Palladium-Plated Bailout?
By Kellyn Brown
Montana Gov. Brian Schweitzer has resumed driving his Chevy pickup, which he had apparently parked in protest after General Motors cancelled its contract with Stillwater Mine – America’s only platinum and palladium mine – in favor of an overseas supplier.
Now GM and Stillwater are back at the negotiating table. But if the two sides can’t hammer out a new contract, Rep. Denny Rehberg has his own idea that could potentially save jobs in Columbus: require the federal government to mint a 1907 Augustus Saint-Gaudens palladium bullion coin.
But wouldn’t that be a government bailout, which Rehberg has largely opposed? The Billings Gazette’s Ed Kemmick thinks so:
The proposal seems to be a bailout of sorts. As one of my colleagues said, Rehberg might as well introduce legislation requiring the government to take out $100 million worth of advertising in The Gazette, which I am authorized to say we would gladly accept. We would even accept payment in palladium coins.
In Rehberg's defense, I will say that the government wouldn't exactly be giving any money directly to Stillwater Mining. The Treasury would buy the palladium, but presumably it could recover its investment by adding a few bucks to the price of each double eagle.
But if I'm reading the bill correctly, the Treasury would mint no more than 25,000 of the coins. At $260 an ounce, that's only $6.5 million. If we're going to help Stillwater Mining, let's get serious.
A Palladium-Plated Bailout?
By Kellyn Brown
Montana Gov. Brian Schweitzer has resumed driving his Chevy pickup, which he had apparently parked in protest after General Motors cancelled its contract with Stillwater Mine – America’s only platinum and palladium mine – in favor of an overseas supplier.
Now GM and Stillwater are back at the negotiating table. But if the two sides can’t hammer out a new contract, Rep. Denny Rehberg has his own idea that could potentially save jobs in Columbus: require the federal government to mint a 1907 Augustus Saint-Gaudens palladium bullion coin.
But wouldn’t that be a government bailout, which Rehberg has largely opposed? The Billings Gazette’s Ed Kemmick thinks so:
The proposal seems to be a bailout of sorts. As one of my colleagues said, Rehberg might as well introduce legislation requiring the government to take out $100 million worth of advertising in The Gazette, which I am authorized to say we would gladly accept. We would even accept payment in palladium coins.
In Rehberg's defense, I will say that the government wouldn't exactly be giving any money directly to Stillwater Mining. The Treasury would buy the palladium, but presumably it could recover its investment by adding a few bucks to the price of each double eagle.
But if I'm reading the bill correctly, the Treasury would mint no more than 25,000 of the coins. At $260 an ounce, that's only $6.5 million. If we're going to help Stillwater Mining, let's get serious.
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Comments
What bunk. If there's an investor market for palladium coins and if the government makes a profit as well as Stillwater, please explain how it even remotely resembles a bailout?
I knew it would happen.
<< <i>That article must be old, palladium is not $260 an ounce.
I think you are correct. I remember that last year or the year before a proposal to mint Palladium coins died in committee ... Palladium is more like $560+ an ounce
Palladium, unlike gold, silver and platinum, has had no use as legal tender, and is not considered a coinage metal.
<< <i>Palladium, unlike gold, silver and platinum, has had no use as legal tender, and is not considered a coinage metal. >>
Palladium is an excellent coinage metal. I use it.
Stillwater Mine
A Palladium-Plated Bailout?
By Kellyn Brown , 08-06-09
Old Linky
I think the new legislation that passed isn't for a UHR coin, it is for the Mercury Dime obverse.
I knew it would happen.