NGC Announces Cooperation Agreement with First State Depository
Posted on 1/1/2007
NGC announces a cooperation agreement with First State Depository Company, LLC (First State), a private, professionally managed certified coin and precious metals custody company based in Wilmington, Delaware. First State specializes in providing secure, insured and confidential safekeeping and account reporting services to both dealers and individuals active in the certified coin market. This new alliance is designed to directly support and greatly enhance the financing, storage and delivery requirements associated with the grading of coins submitted to NGC by dealers throughout the marketplace.
"As an independent third-party service provider, First State adds a critical new element of support to today’s certified coin market," says NGC CEO, Steve Eichenbaum. "First State is a full-service depository having a special expertise in safekeeping coins and bullion that serve as collateral for lenders who fund dealer purchases."
Under this agreement, dealers who finance the acquisition of coins submitted to NGC for grading can have NGC subsequently deliver their graded coins to an account at First State, keeping their financed positions intact. Then, as desirable market conditions and sales opportunities develop, dealers simply instruct First State to either transfer or ship the coins as they sell them to individual customers or other dealers, and satisfy their loan obligations.
Mike Clark, President of First State, comments, "We are extremely pleased with this new association we now have with NGC. Coin dealers will find that with First State’s security, depository services and detailed reporting capabilities now available to them, they no longer need to carry much of the operational burden and expense in-house they’ve grown accustomed to in the past." Clark continued, "Bullion dealers have been using third party depositories like First State on a highly cost-effective basis for decades, to provide required fulfillment functions – such as inventory storage and product delivery – which they either could not, or found too costly to do themselves. Now the coin dealer community can do likewise, as our state-of-the-art software and customized handling procedures make for rapid reporting and turnaround. First State’s ability to offer its secure, insured safekeeping, delivery and collateral custody services, in particular, to the certified coin market and lenders active in it on a broader scale, as the direct result of this new relationship with such a prominent entity as NGC, is especially gratifying."
Parties interested in learning more about First State Depository may visit their Web site at www.FirstStateDepository.com or by phone at (302) 765-2760. More information about NGC is available at www.NGCcoin.com.