First strike (coinage) explained

First strike is a marketing term used by third party coin grading services which refers to coins which were struck first by a mint. The U.S. Mint maintains that there is no widely accepted and standardized numismatic industry definition of First Strike coins.[1] Several coin grading companies have decided that a "first strike" coin is one that shipped from the mint in the first month of the new minting.[2]

No U.S. Mint First Strike Program

The U.S. Mint has stated that they do not keep track of which coins were struck first. The mint has dates on the packaging for the coins, however they also state that the shipping dates do not reveal exactly when the coins were struck.[3] [4]

Lawsuit

In 2006 a Miami lawyer filed a 10 million dollar lawsuit in a Miami court, alleging the "First Strike" label is deceptive. The lawsuit was filed against the two coin grading companies: Numismatic Guaranty Corp., (NGC) based in Sarasota, Fla., and Professional Coin Grading Service, (PCGS) of Newport Beach, California.[5]

In 2007 NGC settled the lawsuit by paying money to collectors and the attorneys. They also designated 447,500 dollars for consumer education.[6]

Marketing

The lawsuit revealed that the designation of "First strike" is essentially a successful marketing tool. There is essentially no way to know when a coin was struck. While PCGS retains the use of the term, NGC has changed their designation from "first strike" to a more accurate description: "Early Release".[4]

Notes and References

  1. Web site: "First Strike" or "First Release" Designations . usmint.gov . 6 June 2016 . United States Mint . 31 January 2020.
  2. Web site: Dwyer . A. C. . First Strike Coins - A Marketing Goldmine . thesprucecrafts.com . Dotdash publishing . 31 January 2020.
  3. Web site: "First Strike" or "First Release" Designations . usmint.gov . 6 June 2016 . United States Mint . 31 January 2020.
  4. Web site: FIRST STRIKE COINS AND EARLY RELEASE COINS . cmi-gold-silver.com . 18 September 2006 . CMI Gold & Silver, Inc. . 31 January 2020.
  5. News: Anderson . Curt . Suit Alleges 'First Strike' Label for Collector Coins is Deceptive . 31 January 2020 . Wells Media Group LLC. . 18 December 2006.
  6. News: NGC reaches settlement terms . 31 January 2020 . Active Interest Media . 21 July 2008.