[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5614 Referred in Senate (RFS)]
2d Session
H. R. 5614
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 19, 2008
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
To authorize the production in palladium of Saint-Gaudens Double Eagle
coins as ultra-high relief numismatic coins and bullion investment
coins in order to provide affordable opportunities for investments in
precious metals, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act shall be known as the ``Original Saint-Gaudens Double
Eagle Ultra-High Relief Palladium Bullion Coin Act''.
SEC. 2. FINDINGS.
The Congress finds that--
(1) the Augustus Saint-Gaudens $20 gold pieces of 1907 with
ultra-high relief are considered by many in the numismatic
community to be the most beautiful coins ever produced;
(2) two separate ``pattern'' versions of the ultra-high
relief Double Eagle were produced in 1907;
(3) a 34-millimeter version was hand-struck on a standard
Double Eagle planchet using a medal press and, because
manufacturing and technical limitations prevented mass
production of these pieces, this production resulted in low
mintage, with fewer than two dozen specimens of the 34-
millimeter version known to be in existence today;
(4) a second, 27-millimeter, version was struck using two
stacked $10 Eagle planchets;
(5) these experimental ``pattern'' 27-millimeter pieces
were deemed to be illegal to produce and all specimens were
destroyed except for 2 that reside in the Smithsonian's
National Numismatic Collection;
(6) the 27-millimeter pattern pieces are ranked by
numismatists as among the most beautiful coins ever produced,
but none are in private hands and none have ever come up for
sale;
(7) the ultra-high relief Double Eagles are representative
of the greatest period of American coinage, the so-called
``Golden Age of Coinage'' in the United States, initiated by
President Theodore Roosevelt, with the assistance of noted
sculptors and medallic artists James Earle Fraser and Augustus
Saint-Gaudens;
(8) the introduction of this famous piece as a numismatic
proof coin would not only give collectors an opportunity to own
a version of a legendary coin that has never before been
available for private ownership, but also inaugurate a neo-
renaissance in United States coin design and demonstrate the
technological advances that the United States has achieved over
the last century;
(9) the modern coin version of the $20 gold piece would be
updated with the addition of the inscription ``In God We
Trust'' and would include the date of minting or issuance, to
distinguish it from the originals and prevent counterfeiting;
(10) palladium is a rare silver-white metal, and is
considered a precious metal because of its scarcity;
(11) palladium is one of 6 platinum group metals that
include ruthenium, rhodium, osmium, iridium, and platinum; it
is the least dense and has the lowest melting point of the
platinum group metals;
(12) the major nations mining palladium are in order of
volume: Russia, South Africa, United States of America, and
Canada;
(13) the major mine producing palladium in the United
States is located in Montana;
(14) palladium is fabricated into a wide range of
applications that includes its extensive use as an industrial
catalyst and a key component in the manufacturing of automotive
catalytic converters;
(15) palladium is also used in dentistry, jewelry, and in
the production of surgical instruments and electrical contacts;
(16) the demand for precious metals is driven not only by
their practical use, but also by their role as a store of
value;
(17) a variety of investment options are available to
palladium investors that includes coins, bars, and exchange-
traded funds;
(18) palladium coins have been issued by several countries,
mainly as commemorative coins, but also as bullion investment
coins (bullion is the form of palladium traded for investment
purposes and is a reference to its purity);
(19) Tonga commenced issuing palladium coins in 1967 and
other issuing countries have included Canada, the Soviet Union,
France, Russia, China, Australia, and Slovakia;
(20) today, only Canada mints palladium bullion coins;
(21) during the period 2003 through 2007, the price of
palladium ranged between $148 and $404 per troy ounce, and the
average price in 2007 was $355 per troy ounce;
(22) by contrast, during the same period, the price of
platinum ranged between a low of $603 and a high $1,544, and
the average price in 2007 was $1,303 per troy ounce;
(23) thus, platinum bullion coins have become too expensive
for the average investor;
(24) The Royal Canadian Mint minted platinum bullion coins
for 14 years (between 1988 and 2001), but ceased production in
the face of high metal prices and declining sales;
(25) when the United States Mint's American Eagle Platinum
Bullion Coin was launched in 1997, the average price for the
metal that year was $395 per troy ounce; and
(26) over the past decade, the price has more than tripled,
which has caused a dramatic decline in demand for these coins,
from 80,050 ounces sold in 1997 to 9,050 in 2007.
SEC. 3. ORIGINAL SAINT-GAUDENS DOUBLE EAGLE ULTRA-HIGH RELIEF BULLION
COIN.
Section 5112 of title 31, United States Code, is amended--
(1) in subsection (a), by adding at the end the following
new paragraph:
``(12) A $20 coin that--
``(A) is 27 millimeters in diameter;
``(B) weighs 1 ounce;
``(C) is of an appropriate thickness, as determined
by the Secretary; and
``(D) bears, on the obverse and reverse, the
designs of the famous 27-millimeter version of the 1907
Augustus Saint-Gaudens Double Eagle gold piece, as
described in subsection (t).''; and
(2) by adding at the end, the following new subsection:
``(t) Original Saint-Gaudens Double Eagle Ultra-High Relief
Numismatic Coins and Bullion Investment Coins.--
``(1) In general.--Beginning January 1, 2009, the Secretary
shall commence minting and issuing for sale--
``(A) such number of $20 bullion investment coins
as the Secretary may determine to be appropriate, that
bear the design described in paragraph (2); and
``(B) not more than 15,000 of the numismatic $20
coins that bear the design and meet the requirements of
paragraph (3).
``(2) Design and requirements for bullion investment
coins.--
``(A) In general.--Except as provided under
subparagraph (B), the obverse and reverse of the coins
minted and issued pursuant to paragraph (1)(A) shall
bear a close approximation of the original obverse and
reverse designs by Augustus Saint-Gaudens which appear
on the famous 27-millimeter version of the 1907 Double
Eagle ultra-high relief gold piece.
``(B) Variations.--The coins referred to in
subparagraph (A) shall--
``(i) have inscriptions of the weight of
the coin and the purity of the alloy in the
coin raised on the edge of the coin;
``(ii) bear the nominal denomination of the
coin;
``(iii) bear the date of issue of the coin
on the obverse, expressed as a Roman numeral as
in the original design; and
``(iv) bear such other inscriptions,
including `In God We Trust', as the Secretary
determines to be appropriate and in keeping
with the original design.
``(C) Mint facility.--Any facility of the United
States Mint may be used to strike coins minted pursuant
to paragraph (1)(A) other than the United States mint
at West Point, New York.
``(3) Design and requirements for ultra-high relief
numismatic coins.--
``(A) In general.--Subject to subparagraph (B), the
obverse and reverse of the coins minted and issued
pursuant to paragraph (1)(B) shall bear exact replicas
of the original obverse and reverse designs by Augustus
Saint-Gaudens which appear on the famous 27-millimeter
version of the 1907 Double Eagle ultra-high relief gold
piece and the edge of the coin shall have all
appropriate raised lettering in the same manner as the
original coin.
``(B) Variations.--The coins referred to in
subparagraph (A) shall--
``(i) bear a single finish that most
closely approximate the finish of the original
gold 1907 ultra-high relief gold piece as is
practicable;
``(ii) bear the nominal denomination of the
coin;
``(iii) bear the date of issue of the coin
on the obverse, expressed as a Roman numeral as
in the original design; and
``(iv) bear such other inscriptions,
including `In God We Trust', as the Secretary
determines to be appropriate and in keeping
with the original design.
``(C) Mint facility.--Coins minted pursuant to
paragraph (1)(B) may only be struck at the United
States mint at West Point, New York.
``(D) Fractional coins prohibited.--No coins issued
pursuant to paragraph (1)(B), shall be made available
as so-called `fractional' coins.
``(4) Distribution in sets and other coordination
requirements.--If the Secretary chooses, in accordance with
subsection (i), to mint and issue a gold bullion coin that
bears the same design as the ultra-high relief numismatic coins
described in paragraph (1)(B)--
``(A) each palladium coin issued under paragraph
(1)(B) may only be issued in a set containing 1 of each
such coins;
``(B) each set of coins described in subparagraph
(A) shall be provided in a presentation case of
appropriate design;
``(C) the set described in subparagraph (A) may
only be issued and sold in 2009;
``(D) gold coins issued in any set described in
subparagraph (A) may only be struck at the United
States mint at West Point, New York and no other gold
coin issued by the Secretary that bears the same design
as the ultra-high relief numismatic coins described in
paragraph (1)(B) may be struck at such mint at West
Point; and
``(E) no gold coin that bears the same design as
the ultra-high relief numismatic coins described in
paragraph (1)(B) shall be made available as so-called
`fractional' coins.
``(5) Composition.--
``(A) In general.--The coins minted under this
subsection shall contain .995 pure palladium.
``(B) Source of bullion.--
``(i) In general.--The Secretary shall
acquire bullion for the palladium coins issued
under this subsection by purchase of palladium
mined from natural deposits in the United
States, or in a territory or possession of the
United States, within 1 year after the month in
which the ore from which it is derived was
mined.
``(ii) Price of bullion.--The Secretary
shall pay not more than the average world price
for the palladium under subparagraph (A).
``(6) Sale of coins.--Each coin issued under this
subsection shall be sold for an amount the Secretary determines
to be appropriate, but not less than the sum of--
``(A) the nominal denomination of the coin;
``(B) the market value of the bullion at the time
of sale; and
``(C) the cost of designing and issuing the coins,
including labor, materials, dies, use of machinery,
overhead expenses, marketing, distribution, and
shipping.
``(7) Legal tender.--The coins minted under this title
shall be legal tender, as provided in section 5103.
``(8) Treatment as numismatic items.--For purposes of
section 5134 and 5136, all coins minted under this subsection
shall be considered to be numismatic items.
``(9) Quality.--The Secretary may issue the coins described
in paragraph (1)(A) in both proof and uncirculated versions.
``(10) Protective and anti-counterfeiting cover.--
``(A) In general.--The Secretary shall give strong
consideration to making the coins described in this
subsection available only in protective covers that
preserve the coins in the condition in which they are
issued, allow clear and easy viewing of the obverse,
reverse, and sides of the coin and protect it from
movement within the holder, and also protect against
counterfeiting of such coins or of the container.
``(B) Acquisition.--The Secretary may elect to
comply with subparagraph (A) by producing and
assembling such protective covers within the United
States Mint or by contracting for the installation of
such covers.
``(11) Further anti-counterfeiting measures.--
``(A) Report required.--In an attempt to forestall
the counterfeiting or marketing of the coins described
in this section, including this subsection, and of
collectible, numismatic and rare coins in general, the
Comptroller General shall, after consulting with the
Director of the United States Secret Service and the
Federal Trade Commission, and in consultation with
hobbyists, numismatists, law enforcement agencies, and
the Citizens Coinage Advisory Committee, shall submit
to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate, before the end of the
9-month period beginning on the date of the enactment
of the Original Saint-Gaudens Double Eagle Ultra-High
Relief Bullion Coin Act, a report detailing the extent
of counterfeiting of rare, collectible or numismatic
coins made available for sale in the United States,
regardless of the country where the original of such
coin was produced or of the country in which the
counterfeiting takes place, or sales overseas if such
counterfeit coins are unauthorized copies of coins
originally produced by the United States Mint.
``(B) Contents of report.--The report submitted
under subparagraph (A) shall describe the following:
``(i) The extent of such counterfeiting of
coins and numismatic items.
``(ii) The source of such counterfeiting,
if known, including which countries may be the
origin of such counterfeits if they are
produced outside the United States.
``(iii) The distribution and marketing
channels for such counterfeits within and
without the United States.
``(iv) The effect of any such
counterfeiting on hobbyists, numismatists and
on the investment opportunities for bullion or
numismatic coins produced by the United States
Mint.
``(v) Whether such counterfeiting extends
to the counterfeiting of coin-grading or
protective materials in such a way that might
imply that the counterfeit inside had been
examined and authenticated by a reputable coin-
grading firm.
``(vi) Such recommendations for legislative
or administrative action as the Comptroller
General may determine to be appropriate to
curtail or forestall any such
counterfeiting.''.
Passed the House of Representatives May 15, 2008.
Attest:
LORRAINE C. MILLER,
Clerk.