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North American Palladium Ltd. Message Board

  • bigsee4c bigsee4c Mar 1, 2013 3:04 PM Flag

    Anyone for a US Palladium Coin?

    It will be interest to see if the study indicates sufficient demand to produce the coin. If so, it should be minted within a year.

    Source "American Palladium Eagle Study Ready for Congress"

    " ' The study is due to be delivered to Congress next week,' stated U.S. Mint spokesman Michael White.

    That report will go to the Senate Banking Committee and House Committee on Financial Services.

    Assuming the study indicates sufficient demand and producing Palladium Eagles results in no net cost to taxpayers, bullion versions would appear within a year. A maximum 12-month period from delivery of the report to Congress to the release of the coins was another stipulation of the authorizing legislation."

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    • the3y will cost a bunch more than silver

    • I think we have been over this all several times during the last year. Bell alone had several detailed posts. It is a done deal - passed by Congree and signed by the President. It is even designed. Why do you think it has be "studied" somr more? The last I heard it was in production and coming out this summer as soon as it could be scheduled because they were so backlogged producing silver coins.

      Sentiment: Hold

      • 1 Reply to pacenet_2000
      • I think you must have misread something. First, who said it needs to be studied more? The study is done and will be sent to the Senate Banking Committee next week for review. Second, it can't already be in production until congress gives the final OK.

        The reason this seams relevant enough to post today is that the clock starts next week when the committees get the report. If they give it the final go ahead it will be minted by or before next March.

    • I wonder if any potential for bias in this study or if the almighty Fed might have influence in the decision?

      Creating another Pd coin in and of itself not that big a deal but anything that creates a bit of buzz that goes along with the launch can be helpful in terms of advertising and promotion by the govt and coin dealers etc.

      My guess is there are more people that know Palladium as an entertainment venue rather than a noble metal that is becoming increasingly rare so any education of the masses that helps build awareness is good for potential demand of the metal in its physical form--- whatever form it might be.

      but the Fed/govt authorities might prefer not to open that can of worms if it were thought that it better to keep Pd less visible and out of the public's mind given tightness in supply.

      It does not matter if people buy a bar or a coin like the eagle, platypus, or maple-- any additional promotion that builds awareness is good for additional demand and an argument could be made that the Fed might not want to stoke any additional interest in such a metal for fear of adding the straw that could break the camel's back and cause bubble pricing thereby helping to stoke perceptions of inflation.

      What they should do is create coins that might compete with the Fed's fiat and that have a legal tender value closer to the current value of the metal that goes into them but you can bet that there would be a lot of resistance to that!!

      The Fed's monopoly on fiat currency will be defended at all costs and we should never forget that the ability to fund that effort with a printing press comes in awfully handy.

      Failing that, the only additional power ever needed to maintain this monopoly is the control of law enforcement and perhaps the military in order to enforce the (financial and fiat ) Rules of Law as the Fed interprets them to be.

      .

    • "and producing Palladium Eagles results in no net cost to taxpayers,"

      Right!!!! Given the usual efficiency of gov't operations, they will have to have a substantial markup.
      Current premium over spot for Cdn PD coins is about 7%. Also they're not authorized to mint sub-ounce coints just 1 ounce.

      There really does not seem to be much demand for Pd coins, Canada stopped minting them in 2009 due to insufficient demand. In 2009 they used 40,000 oz of Pd. (40,000 oz is just 320,000 cars worth.)

      Even in the unlikely event that mint can do it "no loss" I don't think demand will be very high. Maybe initially as some collectors want one of every thing but IMO the effect on Pd price will be negligible.

      I remember when legislation was initially passed there was great silliness on this board - some posters showing how the demand would be 10,000,000 oz.

      The whole thing was a political move by the Senator from Montana. IMO study will show so low a demand that startup and other fixed costs will make it a loser - thus no go ahead.

      • 1 Reply to bellbell63
      • I can't foresee if final approval will be given or not, but I did foresee you posting some of the comments you posted. (Maybe because you had before) ; )

        40K sounds somewhat low, but even if it were that low, that's still 10% of Stillwater's Pd production (they would be required to buy from Stillwater.) Or you could look at it as a quarter of NAPs production. It may not be the straw that throws Pd into an upward parabolic surge. Still, every percentage taken out of the supply pool adds up.

        If approved, I would anticipate the demand would be greater than 40K ounces. The first full year of the one ounce platinum coin was about 150K ounces. (First year issues always attract more coin collectors). I don't see why Pd couldn't be at least 100K for the first year. If less than 40K, they probably won't bother approving it.

 
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