A Palladium-Plated Bailout?

By Kellyn Brown, 8-06-09

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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