[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2924 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 2924

 To authorize the production of Saint-Gaudens Double Eagle ultra-high 
 relief bullion coins in palladium to provide affordable opportunities 
      for investments in precious metals, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 28, 2008

Mr. Baucus (for himself and Mr. Tester) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To authorize the production of Saint-Gaudens Double Eagle ultra-high 
 relief bullion coins in palladium 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 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:
            ``(11) 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 ultra-high relief 
                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 
Coins.--
            ``(1) In general.--Beginning January 1, 2009, the Secretary 
        shall commence minting and issuing for sale such number of $20 
        bullion coins as the Secretary may determine to be appropriate, 
        that bear the design described in paragraph (2).
            ``(2) Design.--
                    ``(A) In general.--Except as provided under 
                subparagraph (B), the obverse and reverse of the coins 
                minted and issued under this subsection shall bear 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 incused on the edge of the coin;
                            ``(ii) the nominal denomination of the 
                        coin;
                            ``(iii) 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) Fractional coins prohibited.--No coins issued 
                under this subsection, regardless of the composition, 
                shall ever be made available as so-called `fractional' 
                coins.
            ``(3) Composition.--
                    ``(A) In general.--The coins minted under this 
                subsection shall contain .995 pure palladium, except 
                that during the first year of minting and issuance 
                only, the Secretary instead may choose to mint and 
                issue the coin in .999 pure gold.
                    ``(B) 1-year limitation.--If the Secretary chooses 
                to mint and issue the coins described in this 
                subsection in gold during the first year of issue, no 
                coins shall be minted and issued under this subsection 
                in palladium during that year, and such gold coins 
                shall be issued only in proof versions.
            ``(4) Source of bullion.--
                    ``(A) 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.
                    ``(B) Price of bullion.--The Secretary shall pay 
                not more than the average world price for the palladium 
                under subparagraph (A).
            ``(5) Sale of coins.--Each bullion 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.
            ``(6) Legal tender.--The coins minted under this title 
        shall be legal tender, as provided in section 5103.
            ``(7) Treatment as numismatic items.--For purposes of 
        section 5134 and 5136, all coins minted under this subsection 
        shall be considered to be numismatic items.
            ``(8) Quality.--Except as provided in subparagraph (3)(B), 
        the Secretary may issue the coins described in this subsection 
        in both proof and uncirculated versions.
            ``(9) Special treatment.--If the Secretary elects to mint 
        and issue coins in 2009 in gold as described in subparagraph 
        (3)(A), no more than 25,000 shall be available for sale in a 
        special `Golden Age of American Coinage' set, including a 
        special holder, each in combination only with a proof version 
        of the gold coins described in subsection (q).
            ``(10) Protective and anti-counterfeiting cover.--
                    ``(A) In general.--The Secretary shall give strong 
                consideration to making the coins described in this 
                subsection, regardless of metallic content, 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 and reverse 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 paragraph (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 
                Treasury Inspector 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 Treasury 
                        Inspector General may determine to be 
                        appropriate to curtail or forestall any such 
                        counterfeiting.''.
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