Grade Protection?

[ldhair]

The web site has me a little confused on this. Can I use the grade protection option if the coin is now in a PCGS holder. I understand it must be re-graded by NGC to use this option. This topic came up across the street and many of us were confused about how this works. Thanks.

[NCSSilliman-migration]

Idhair:

 

Thanks for the question about Grade Protection.

 

Grade Protection is a service option that can be used when submitting all certified coins to be conserved and then graded by NGC. (When I say certified I am refering to coins that have been graded and encapsulated by any grading service--PCGS, NGC, ANACS, PCI, SEGS, ACG, NCI, ICG etc, etc, etc...)

 

Grade Protection is similar to insurance. It works as follows:

If we decide to conserve the certified coin, it is removed from its holder, conserved and then submitted directly to our official grading service, NGC, for grading and encapsulation. If the coin does not at least maintain is original grade at NGC and the submitter has selected the grade protection option, NCS will step up to the plate because we stand behind our efforts and remedy the situation by either 1) exchanging the coin with an equivalent coin at the earlier higher grade; 2) credit your account with the difference between the current fair market value of the current lower grade and the earlier higher grade; 3) purchase the coin at the current fair market value of the earlier higher grade.(the specifics of the Grade Protection option can be found on our website).

 

Grade Protection obviously can not be applied to an uncertified coin. It can also only be applied to coins that are submitted directly to NGC by NCS after conservation.

 

Grade Protection is an additional fee of 1% of the declared value of the coin with a $5 minimum.

 

I think it is also important to note that while we offer those three remedies to make up for a coin grading lower, if the coin grades higher after conservation, we DO NOT CHARGE YOU MORE.

 

I hope this information helps clarify the policy. Please do not hesitate to contact me should you need additional information or have other questions.

 

Continued success with your coin collecting,

Brian

 

 

[EVillageProwler]

Brian,

 

Suppose I submit a common date Morgan dollar graded MS65 by ACG, and NGC (via NCS) BB's it as polished.

 

Suppose also I applied for grade protection at the time of submission and put down $80 as the value.

 

How will NCS determine the fair value difference?

 

EVP

 

[CHRISS]

The Grade Protection option can be used on any certified coin. You could certainly opt for the grade protection on your coin in a PCGS holder. If work is performed on your coin, and you did opt for the extra 1% of your delcared vlaue grade protection option, and your coin does come back a lower grade at NGC, then you will be credited the difference in value, have your coin bought back at your declared value, or have your coin replaced with an equivalent. The grade protection option applies equally regardless of which service your coin has been encapsulated by, whether it be NGC, PCGS, ANACS, PCI, SEGS, ICG, ACG, NTI....etc.

 

I hope this clears up your confusion.

 

Chris, NCS Customer Service

[NCSSilliman-migration]

Good question.

 

First of all, the coin is not removed from its holder until it has been evaluated. During the evaluation process we are checking for precisely this type of problem and trying to avoid it.

 

Whether you had selected Grade Protection or not, we would decline to conserve the coin and return it to you in its original holder.

 

However, if the coin has a severe problem that really should be conserved, but in its current condition or as a result of the contamination we feel there is a signficant probability of the coin not maintaining its certified grade, we would call you to explain the situation before doing anything. At that time, we would give you the option of having the coin returned still in its holder with nothing done or waiving the grade protection option and allowing us to save the coin. Situations like this are rare, but can and do occur.

 

In regards to the question of fair market value. If coin is certified as an MS65 you are protected under grade protection at the fair market value of the MS65 grade.

 

I hope this clarifies things for you.

Brian

 

"Suppose I submit a common date Morgan dollar graded MS65 by ACG, and NGC (via NCS) BB's it as polished.

Suppose also I applied for grade protection at the time of submission and put down $80 as the value.

How will NCS determine the fair value difference?

EVP"