NGC's recent agreement with First State Depository makes it easier for dealers to protect their financial positions.
Enables Financed Positions to Remain Collateralized During and Following NGC Certification
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
"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