NGC COIN GRADING GUARANTEE
Numismatic Guaranty Corporation (“NGC”) provides the following guarantee for NGC-graded coins. Coins must be encapsulated in NGC holders to be eligible for the NGC Guarantee.
This guarantee does not apply to coins submitted for the following specialty services and encapsulated with their respective labels: NGC Ancients, NGC Certified Gold, NGC Authenticated Bullion and NGC Shipwreck Certification, which are subject to guarantees specifically applicable to those services.
NGC guarantees that:
- All US and world coins, tokens and medals graded by NGC and encapsulated in an NGC holder (which are collectively referred to as “Coins” in this guarantee) are guaranteed to be genuine.
- All Coins are guaranteed not to be overgraded, meaning that they are not graded higher than NGC’s grading standards.
- Note: The grade guarantee does not apply to NGC Details-graded coins, which are guaranteed to be genuine only.
The owner of any NGC-certified Coin believed to be not genuine or overgraded may submit it to NGC under its Appearance Review service. If NGC determines, in its sole opinion, that the Coin is not genuine or that the correct grade for the Coin is lower than the one originally assigned, NGC will provide one of the three remedies described below. The choice of remedy will be made by NGC in its sole discretion, and the remedies are subject to the further limitations set forth below. Current Fair Market Value is determined solely by NGC as described in each of the listed remedies and the “Fair Market Value” paragraph that follows.
- NGC may (a) return the Coin to the submitter encapsulated with a label indicating the newly established correct (lower) grade and (b) pay to the submitter the difference between the current Fair Market Value of an accurately graded Coin at the original incorrect (higher) grade and the current Fair Market Value of the Coin at the newly established correct (lower) grade.
- NGC may purchase the Coin from the submitter. If the Coin was determined to be overgraded, the price NGC pays will be the current Fair Market Value of an accurately graded Coin at the original incorrect grade. If the Coin was determined to be not genuine, NGC will pay the lesser of the Fair Market Value of an accurately graded, genuine Coin or the amount actually paid for the Coin by the submitter in an actual arm’s length transaction, plus any postage, shipping or other incidental expenses incurred by the submitter in submitting the Coin for Appearance Review service by NGC.
- NGC may retain the not genuine or overgraded Coin and provide to the submitter in its place an equivalent Coin that is genuine and has the same grade as NGC originally assigned to the Coin.
Fair Market Value. NGC will determine, if and as necessary, and in its sole discretion, the current “Fair Market Value” of the Coin if it were to be sold. This determination will be made for an accurately graded Coin at the original incorrect (higher) grade and, if applicable, for the Coin at the newly established correct (lower) grade. NGC will determine the current Fair Market Value of a Coin based upon what NGC believes, in its sole opinion, to be reliable current market information. NGC may use actual pricing and sales information available to it, including prices in the actual transaction history of the Coin in question. However, due to the volatile nature of the Coin market and Internet auctions/sales as well as the differences in buying habits of different individuals, such information may not necessarily represent the accurate current Fair Market Value of any particular Coin, which again, will be determined by NGC in its sole discretion.
WARNING: THIS GUARANTEE IS LIMITED. The following terms, limitations and restrictions apply with regard to the above guarantee and available remedies, and the submitter of a Coin using NGC’s Appearance Review service agrees to be bound by all of the terms, conditions and limitations set forth herein:
- Required Information. In fulfillment of the NGC Guarantee, NGC may require that the submitter provide information regarding the transaction history of a particular Coin, including the date purchased, the purchase price, the seller and the transaction amount. NGC may also require that a submitter attempt to reverse a prior transaction. The submitter acknowledges that his or her inability to provide requested information and / or non-cooperation hinders NGC from fulfilling its commitment under the terms of this Guarantee, and in such cases NGC shall not be required to provide any of the listed remedies.
- Coin Conservation. NGC may also, at its sole discretion, have a Coin submitted under this Appearance Review service professionally conserved by it or an affiliated company if NGC believes that doing so can improve its fitness for the grade originally assigned. There will be no charges assessed to the submitter for conservation service performed in conjunction with an Appearance Review.
- NGC Holders. The NGC Guarantee does not apply to Coins that have been removed from their NGC holder, or if the NGC holder containing a Coin has been damaged, unsealed, tampered with or altered. The determination as to whether this has occurred shall be at the sole discretion of NGC. Further, the NGC Guarantee does not apply to counterfeit or tampered NGC holders.
- Improper Storage. The NGC Guarantee does not apply if a Coin submitted for Appearance Review is determined to have a lower grade than that originally assigned to it by NGC, but it is also determined by NGC that the holder has been subject to abuse, alteration or improper storage conditions such as (but not limited to) extreme temperature, moisture, damaging environmental conditions, excessive light, excessive motion or vibration or any other extreme conditions.
- Deterioration of Certain Coins. The NGC Guarantee does not apply to certain Coins where the appearance of the Coin changes over time (deterioration). NGC shall make the sole determination as to whether this deterioration has occurred. The following specific parameters apply:
- In certain Coins, natural environmental deterioration may cause undesired features to appear, such as (but not limited to) spotting, hazing, PVC and corrosion. Spots, for example, can occur on modern silver Coins as a result of the minting process or other natural conditions over which NGC has no control. Therefore, the NGC Guarantee does not apply to Coins exhibiting any of these issues.
- Coins made of copper, bronze and copper-nickel can change over time. Accordingly, with regard to copper, bronze or copper-nickel Coins graded by NGC, the grade portion of the NGC Guarantee will no longer apply after the 10-year anniversary of their date of encapsulation by NGC. The date of encapsulation can be found by contacting NGC Customer Service.
- A number of countries issue Coins that are enameled, colorized, painted, hologram applied or jeweled at their mint facilities as part of the minting process. The methods used to apply these additive applications vary. Some are lacquered while others are enameled to hold the color in place. Colorized, painted, hologram, and jeweled Coins can, even with proper handling, before or after grading and encapsulation, lose some or all of these additive features. These additive features can chip, flake, or become dislodged. Such conditions may be due to the minting process or other natural conditions over which NGC has no control. Therefore, NGC cannot guarantee that Coins with additive features will retain their full mint-applied aspects or their assigned grade.
- Attributions. Attributions, including variety attributions, reference attributions and pedigree attributions are NOT guaranteed. Further, NGC does not guarantee that a particular variety or designation will always be recognized, and attribution policies are subject to change without notice.
- Designations and Pedigrees. The following designations, including any combination thereof, are considered to be part of the assigned numeric grade for the purposes of the NGC Guarantee: Cameo, Ultra Cameo, PL, DPL, BN, RB, RD, 5FS, 6FS, FB, FH, FT, Matte and Satin. If NGC incorrectly assigns a special designation (such as Early Releases) or pedigree to a Coin it is the duty of the submitter to return that Coin for correction.
- Clerical or “Mechanical” Errors. A clerical (“mechanical”) error occurs when a Coin is encapsulated with a label that bears a grade and/or description that a collector familiar with the NGC grading system and who performed a thorough inspection of both the NGC-certified Coin and the NGC certification label could determine could not be accurate. It is the duty of the buyer and seller of a Coin to examine such Coin for a clerical error to return such Coins for correction when warranted. The NGC Guarantee does not apply when NGC determines, in its sole discretion, that a clerical error has resulted in the Coin having an incorrect grade or description. If requested, NGC will remedy any clerical error free of charge by updating the encapsulation to show an appropriate label.
NGC certification labels with incorrect dates, mintmarks, denominations and Coin types (all of which should be obvious to someone who performs an inspection of the Coin and label) are considered clerical errors. Examples of such errors include, but are not limited to, the following:
- A Coin is labeled a 1955 Doubled Die Lincoln Cent, when the Coin has no doubling.
- A Coin label description references a 1916 Standing Liberty Quarter, when the Coin is a 1916 Barber Quarter.
- A Coin is identified as a Proof, when it is a business strike and the types are readily distinguishable from each other.
- A Coin is described as an 1881-O Morgan Dollar, when it is an 1881-S Morgan Dollar and the mintmark was improperly identified on the label.
- A Coin is graded MS 68 when it should have been graded AU 58, a clerical error with respect to grade that would be obvious to a collector.
- NGC Registry. The NGC Guarantee does not cover a Coin’s status in the NGC Registry, including eligibility or points assigned. Changes to the NGC Registry may be made without notice, and NGC does not guarantee that a Coin will always be eligible for inclusion in the NGC Registry nor does it guarantee that it will receive a certain point score.
THE NGC GUARANTEE AS SET FORTH HEREIN IS THE ONLY WARRANTY, EXPRESS OR IMPLIED, REGARDING THE NGC-GRADED COINS TO WHICH IT APPLIES THAT IS MADE BY NGC. IT REPLACES AND SUPERSEDES ALL OTHER WARRANTIES PREVIOUSLY MADE BY NGC, EXPRESS OR IMPLIED. NGC MAKES NO WARRANTY OF MERCHANTABILITY, FITNESS OR OTHERWISE. THE REMEDIES PROVIDED IN THIS AGREEMENT ARE EXCLUSIVE. EXCEPT AS EXPRESSLY STATED IN THIS AGREEMENT, ALL OTHER REMEDIES AGAINST NGC ARE WAIVED. IN NO EVENT WILL NGC BE LIABLE FOR ANY TYPE OF DAMAGES, INCLUDING BUT NOT LIMITED TO, CONSEQUENTIAL, PUNITIVE AND INCIDENTAL DAMAGES.
THIS GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA AS APPLIED TO TRANSACTIONS TAKING PLACE WHOLLY WITHIN FLORIDA BETWEEN FLORIDA RESIDENTS. CLAIMANTS UNDER THIS GUARANTEE HEREBY WAIVE TRIAL BY JURY AND EXPRESSLY CONSENT, AT THE OPTION OF NGC, (1) TO THE PERSONAL AND SUBJECT-MATTER JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN AND FOR THE COUNTY OF SARASOTA, STATE OF FLORIDA, OR (2) TO ARBITRATION BEFORE THE AMERICAN NUMISMATIC ASSOCIATION OR THE PROFESSIONAL NUMISMATISTS GUILD FOR ANY DISPUTE ARISING FROM OR RELATED TO THIS GUARANTEE.
Notwithstanding anything else contained in this NGC Guarantee, in the event of loss or damage of your Coin by NGC, NGC will only be responsible for the LESSER of the actual current Fair Market Value as determined solely by NGC or the submitter declared valued.
Revised: May 6, 2015