First strike (coinage)
From Wikipedia, the free encyclopedia
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][3][4]
Statement
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 Corporation (NGC) based in Sarasota, Florida., and Professional Coin Grading Service, (PCGS) of Newport Beach, California.[6]
In 2007 NGC settled the lawsuit by paying money to collectors and the attorneys. They also designated 447,500 dollars for consumer education.[7]
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".[5]