Dec 18, 2006 | coins, grading
Numismatic Guarantee Corporation (NGC) announced that bullion coins received within the first 30 days of release in US Mint packaging will be designated as “EARLY RELEASES.” Previously, these coins were given First Strike designation using the same submission rules. But last month, NGC and Professional Coin Grading Service (PCGS) were sued in U.S. District Court, Southern District of Florida, Miami Division, calling the First Strike designation of fraudulent and deceptive.
The FIRST STRIKE designation has been controversial because of the potential of misinterpreting its meaning. According to both NGC and ANACS, the definition of FIRST STRIKE was the one that NGC is now using for EARLY RELEASES. Although these third-party grading services defined the meaning of FIRST STRIKE, less than ethical dealers would misinform customers to claim the coins were something they were not. This was a typical scenario on the home shopping channels, whose products are usually overpriced and over-hyped.
I am not a fan of the FIRST STRIKE (and now EARLY RELEASES) designation, but I felt the third-party grading services defined the designation properly and provided proper information to the collecting public. Unfortunately, in this litigious society where purveyors of the frivolity attacks the labeler and not the ones who misuse the label, it is a credit to NGC for making this move. It is a matter of time before the others follow their lead.
Sep 9, 2006 | coins, grading
Lately, I have been reading and participating in the discussion forum at the NGC and Collectors’ Society website. One of the discussion talked about the “FIRST STRIKE” designation being added to the grade of slabbed bullion coins by the major grading services. Although they may have slightly different guidelines, both NGC and ANACS post their policies on the web that are very similar. Basically, to gain the FIRST STRIKE designation, the coins must be submitted in the original Mint packaging with all the official Mint documentation that shows the coins were struck in the first month of their run. This designation has nothing to do with the first coins that are struck from a die pair or coins that were struck from the first used die pairs. These are just coins struck during a particular month.
According to the Consumer and Business Awareness page from the US Mint, the Mint does not track the order which coins are minted. Coins that are produced are packaged as convenient, thus that coin that is marked as FIRST STRIKE could be the last coin struck by that die set. If the mint strikes 1,000 coins from a die pair, does that 1,000th coin deserve FIRST STRIKE designation? The Mint does not support this designation.
This situation borders on consumer fraud. Not only does the US Mint not keep records on the number of coins they strike on the first day, but the shipping records are not as detailed as to determine how many are actually shipped as FIRST STRIKE. Also, the term FIRST STRIKE is not properly defined. For example, the ANACS site says proof “coins must be submitted to ANACS within the first month of release by the Mint” and that bullion must be “sealed in the original Mint packaging and have full and proper Mint documentation inside the sealed Mint packaging proving that the coins were struck no later than January 31 of the year of issue.” The subtle difference shows an inconsistency that could be troubling to an unsuspecting market.
The capitalist in me has no problems with the grading services coming up with a new way to expand their market. However, without a consensus on what FIRST STRIKE means and without tying it to something real that proves that the coin is a FIRST STRIKE, the confusion will cause long-term damage to a hobby where some outsiders worry about being taken advantage of. This is not good for the hobby.
I am putting together a set of uncirculated American Silver Eagles that have a minimum grade of MS-69. All are NGC graded. I will not add a FIRST STRIKE coin unless the price is comparable to other coins, because the designation does not make sense when I can purchase an MS-69 that is just a beautiful but not minted in the first month.
P.S. You can also read a similar opinion on the Coin Collecting (and other Numismatic Interests) Through the Eyes of a Beginner blog. The blogger, Arlington, wrote an entry First Strikes: A Marketing Gold Mine that you may want to read.
Mar 7, 2006 | coins, grading
I picked up the March 7, 2006 of Numismatic News and read the front-page article about the new ANACS slab. The new slab is thinner than their previous holder and thinner than the holders from other grading services so that 25 will fit in a “standard” box. It was also reported that the new design and the clear plastic allows the encased coin’s edge, sometimes called “the third side,” to be seen.
Recent interest in being able to see the edge lettering has been revived with the passage of the Presidential $1 Coin Act. The Act says that in order to provide more room for artistic impression, the mottos “E Pluribus Unum” and “In God We Trust” will be incuse on the edge of the coin. There are also collectors who wanted to be able to see the edge of other coins, such as the Saint-Gaudens Double Eagles. In response NGC created a new holder and announced it with the encasing of a 1907 Proof Saint-Gaudens Double Eagle.
I have to admit that I have been a fan of the NGC holder. The holder has a solid feel and seems to show off the coin better. When I read about the new NGC holder in December, I thought that changing the insert of the holder to use “prongs” cut into the slab’s insert to hold the coin in place and maintain the current holder was a great idea. But as I look at the pictures of the new ANACS holder, I may be swayed.
First, the all clear holder will show the entire surface of the edge and not just some areas. Since it is a good idea to certify gold coins to ensure authenticity, it would be wonderful to be able to see around the entire edge of the beautiful Saint-Gaudens design. The thinner slabs are also a great idea. With the increase in the number of coins being graded, the ability to store 25 coins in the area where we used to store 20 will make it easier for those with larger collections.
One of the problems I have with many of my graded coins is that in order to look for a specific coin, I have to pull the slab out of the box in order to read the label. Someone at ANACS must have had the same experience because the new design places the grading information and barcode so that it is readable from the top of the slab. These slabs can then be stored in the new clear plastic box ANACS now offers.
On the surface, there is a lot to like about the new ANACS holder, but I would like to see it for myself. Since ANACS will be attending the Baltimore Coin and Currency Convention next week, I hope to stop at their booth and see the holder.
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