Please explain what "First Strike" means

I see references to First Strike

What does this mean to the coin owner?
How do you know if you have this outside of buying a graded coin that lists "First Strike"
What do you have to do to make sure you maintain the status?

 

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It is essentially meaningless as the coins are not necessarily the first struck, and just a marketing gimmick.

 

I never got the whole deal with first strike. I mean, there are probably tens of thousands of coins from a single year with that designation. They obviously couldn't all be the first coin struck, so like Books said, I see it more as a way to squeeze out a few more dollars from collectors by giving it a phoney designation (ala Holden Caulfield).

 

It's a marketing gimmick that benefits both the TPGs and modern coin dealers. The coins themselves are largely indistinguishable from those lacking the label.

 

The "First Strike" coins are those minted during a certain period after the mint begins minting a coin. It might bet the first 250,000 coins, so it's not terribly special. The TPGs draw a line in the sand to determine the date that "First Strike" ends. The only way to get a coin slabbed as first strike is to submit it in its unopened shipping box from the mint with a post mark on or before the date selected.

As for collector value, the certification adds little to the value of the coin more than the grade does. Some people just like to collect them. I have been collecting silver bullion coins since 2011, and all of my ASEs are "First Strike" MS70, just because I'm OCD. The foreign ones in my collection are not as strictly purchased (I have an ASE, Maple Leaf, Panda, Britannia, and Libertad Onza from each year, and aside from the ASE, grade and status are not important to me as long as the coin shows nicely).

 

This only applies if the coin in question arrives after the cut off date. I think this is what jester 3681 was trying to say. Otherwise a post mark or mint shipping box is not necessary, if it arrives earlier. You do have to request and pay for the designation on the submittal form. It's not automatic.

 

Its the "with mint tags" to our MS 70 beanie babies.........

 

Yeah, but you and I both know Doug this isn't a catchy little catchphrase that will move overpriced merchandise on HSN. Isn't that the point of all of this nowadays, complicit cooperation with mass merchandisers, with coin collectors simply an afterthought? Sure seems to me that is the major driver of TPG behavior.

 

My issue comes from history and how TPG portrayed THEMSELVES to ingratiate themselves with the hobby. They promised us to never give out a 70 grade, they promised us to never grade a modern coin, (past 1964), they promised us their presence would REMOVE the hucksters from the hobby. Remember all of that Doug? All of those promises? Now that they have achieved success, they are simply FACILITATING hucksters by a veil of legitimacy that, "well the coin collecting hobby trusts them, so as long as I buy a TPG coin I cannot get ripped off". So effectively they are mortgaging our name as a hobby to put money in their pocket, after broken every single promise they made to this hobby.

I am not agains a guy making a buck. I am in business, I know everyone needs to make a living. I am simply against people going back on their word to distort this hobby into a support device to facilitate mass marketers to help sell more overpriced goods. I believe it makes all coin collectors guilty by association. Mention "coin collecting" to a non-collector and the most common associated phrase is "crook". I resent that, and anything that enables it to be believed.

I know, I am on the periphery of this and some other issues Doug. Ya'll can just ignore me. Maybe I have been around too long.

 

"First Strike" is specific to PCGS graded coins.

The coin must have been submitted within 30 days of initial release or be still sealed in the shipping box from the Mint with proof that it was sent within the first 30 days.

The First Strike designation can add very significant value to some coins.

 

I never understood it either.

Ok, to make things simple - let's say if the first 1000 coins struck are considered to be first strikes. But chances are there are more than one die used. How can you ever determine the "first strike" of the second and third and other dies used?At every 10,000 coin? But dies last at various stages of striking.

I just don't see it doable. It's not like banknotes where all sheets are serialized and you know which banknotes were released first.

 

That's not the definition of First Strike. First Strike is defined as coins shipped from the Mint within then first 30 days of issue.

There is no claim that they were the first 1000 struck or that a specific die was used. It has nothing to do with how many dies were used.

Now, NGC does label some coins as "Among First 1000 Struck" or "First 5000 Struck" etc. They presumably coordinate with the mints on those ones.

 

You aren't alone there, Chris. But, if business is business, it helps to remember Al Capone and Hitler were savvy businessmen themselves. Sometimes the underlying buck is reached by unimaginable greediness at the expense of all, and eventually themselves. I think the TPG's will experience this if they keep assuming all collectors are gullible enough to fall for any labeling they can imagine up.

 

Here goes my take on the subject.

"First Strike" in the strictest sense of the term, refers to the first coin off of a fresh die set. "First Strikes" would mean the first 50 or so coins off of a fresh die set.

The term was more than likely coin with regard to the Cameo frost on proof coins which, back in the 50's, was the first feature to wear off of a die set.

Fast Forward to 2005.

When the US Mint began producing bullion coins in 1986, many folks began collecting them. In 2005, PCGS figured out a method of "extending" collector interest in these bullion coins by producing "special" slab labels. These labels were called "First Strike", which has absolutely nothing to do with "when" the coin was struck and has everything to do with "when" the coin was submitted for grading AND what fee's were paid for that grading.

This program served two purposes.

1. It insured an influx of grading submissions at specific times through out the year. More specifically, in January of each year. PCGS could count on volume dealers to make bulk submissions at a time when most folks are tightening their belts after the Christmas spending and those bills starting coming in. This more of less guaranteed PCGS a positive cash flow in a tough month of the year.

2. For the bullion collector that purchased PCGS slabbed coins, it added another dimension to the collecting of Silver and Gold Eagles since, some folks may want a collection in standard slabs AND a collection in First Strike slabs.

Assembling a collection in First Strike slabs would prove to be very challenging in that, since the program was introduced in 2005, how could years 1986-2004 be added. Remembering that PCGS First Strike Status required that the coins be received from the US Mint during the 30 day window of when they were first made available to the public.

Well............with Silver Eagles (and possibly Gold Eagles), each box is inspected prior to being sealed at the West Point (or) San Francisco facilities. These inspection slip, which are physically in the box, also have the date of the inspection.
PCGS stated that if a sealed box were submitted for grading AND the date on the inspection were before the end of the 30 First Strike window, then the coins in the box would be eligible for First Strike Slabs. As such, some of the "sealed" boxes submitted for grading have qualified for First Strike "before" the program WAS EVER IMPLEMENTED!

This means that, even though the program started in 2005, it is possible to have a 1986-2004 First Strike qualified coin.

I used to chase these down and used to own 1988, 1990, 1991, 1993, 1996, 1997, 1998, 1999, 2001, 2002, 2003, and 2004 First Strike Silver Eagles.

Some, much to my disappointment, I paid a hefty premium for which was never recovered. Others I paid zero premium for but were able to resell for a hefty premium.

As for the program being a "marketing" gimmick. I don't know that I'd say that as much as I'd say it offered an alternative "type" of collection. BTW, you'll NOT see any 1986 or 1987 First Strike Silver Eagles, but, if you did, they would command very strong premiums (like it or not) since, given the spotting problems that plague the Silver Eagles, finding a sealed box that was shipped within the first 30 days of release and ultimately finding spot free coins within that box, will be next to impossible.

I chased these for a long time and the oldest I'd ever seen was 1988. It had a population of 93 back then and still has a population of 93 today.

Is it worth the premium? Sure. If you collect First Strike Slabs. However, numismatically speaking, the coin within the slab is the same as one produced and shi[[ed later in the year.

For those that like to diss the First Strike Program, there are plenty of other programs to diss.

40th Anniversary Eisenhowers
50th Anniversary Kennedy's
(S) Mint slab labels
Signature Presidential Dollars
First Day of Issue Presidential Dollars
American Hero's Silver Eagles
World Trade Center Silver Eagles
John Mercanti Silver Eagles

Now, the program was so popular, NGC jumped on the band wagon. However, they were sued by a collector in Florida and as part of the settlement (since the coin wasn't really a first strike numismatically speaking, NGC agreed to drop the program and instead, start the "Early Release" program. Of course, "Early Release" is just as deceiving as First Strike in that the coin within the slab ISN'T and "Early Release (meaning released before anybody else got them) as much as its an "Early Submission".

 

Fair enough 19lyds. Thank you for the excellent history. I didn't mean to diss first strike more than any other program on a slab at all. If you are a knowledgable collector, collect whatever you like. I collect all kinds of crud others here would never want to own. My only issue is the inherently deceiving nature of the claim versus what people might think it means.

 

I agree with you in that more than one collector has actually believed that there was something "special" about the coin within the slab and nothing could be further from the truth.

Its the slab that special.

 

I will agree there is demand for every change they made. Of course there is a market. As for the other things, we can agree to disagree about what they promised. I recall the articles from the TPG leaders how 70 was a theoretical grade, and if you award it you then destroy the system, etc.

Has TPG been good for the hobby, yeah. The bad old days were pretty bad, and a lot of people got hosed. Could it have been better? Yes, and that is what I am sad about. But, I am not a shareholder, so my vote doesn't count. I still believe the authentication aspect of slabs is one of the greatest boons this hobby has ever received. What is the old statistic, 264,000 16d's were minted, but millions are in collections.