Are First Strike Coins Worth Paying Extra For? Usually Not.

The short answer is no, First Strike label coins generally aren‘t worth paying high premiums for. As a passionate coin collector yourself, you know that true value comes from scarcity, quality and demand – not marketing hype. In this detailed guide, I‘ll cut through the hype and show you why you should focus on the coin itself, not the First Strike designation.

What is First Strike Anyway?

In the coin world, First Strike refers to coins struck early in a mintage – often within the first 30 days of production. Third-party grading services like PCGS use special First Strike labels to market coins submitted during initial release periods.

The idea is that the coins produced right when minting begins should be higher quality because the dies are still fresh. Thus, you should pay a premium for these "first off the press" coins.

Makes sense, right? Well, not so fast. Here‘s the inside scoop…

The Truth Behind the Hype

While the concept sounds logical, there is zero evidence that First Strike coins are consistently better than those struck later in a mintage run.

The U.S. Mint itself does not recognize or use First Strike as an official designation. In fact, they state:

"There is no numismatic industry standard or specific time period as to what defines a First Strike coin or designates any special status to a coin issued during an arbitrary period of time."

The reality is that First Strike and Early Release are hyperbolic terms intended to market modern coins and generate extra revenue for grading services. It‘s a tactic aimed at making buyers believe they must pay more for coins struck earliest – even though minting quality is generally consistent throughout a production run.

Here‘s an inside look at the misleading marketing tactics behind First Strike:

• Artificial Scarcity: First Strike submissions are artificially limited by grading companies to create the perception of scarcity and demand.

• Pressure Tactics: Dealers pressure customers to "act fast" and submit coins during First Strike windows before it‘s "too late."

• Grandiose Claims: Marketing materials describe First Strike coins as "perfect", "pristine", "immaculate". This is exaggerated hype.

• Higher Prices: First Strike coins often carry large premiums over regular coins of the same grade and type. Much of this premium is extra profit margin.

• Questionable Motives: Grading services have a vested interest in promoting First Strike for extra revenue. More submissions means more profit.

So in most cases, the First Strike designation has more to do with sales and marketing than coin quality. Let‘s look at when it does (and doesn‘t) carry value.

When First Strike Premiums Make Sense (Sometimes)

For the majority of modern bullion and commemorative issues, First Strike carries little to no premium value for collectors. However, there are certain cases where a modest premium may be justified:

• Brand New Series Launch: If a coin is released in an important new series, there can be excitement and demand for "first releases."

• Low Mintage Coins: If a coin has an extremely limited mintage, early strikes may command a small premium when issued.

• Special Label Variants: Certain First Strike variants like "Early Releases" and special labels may see a 10-20% premium.

But even in these cases, the premium is modest and temporary. Once the mintage sells out, First Strike becomes irrelevant. The premium is then based on total scarcity.

When To Ignore First Strike Hype

Here are the key cases when you should completely ignore First Strike premiums:

• Bullion Coins: On gold and silver coins like Eagles and Maple Leaves, First Strike carries zero collector premium.

• High Mintage Coins: On coins with multi-million mintages, First Strike means nothing.

• Established Series: New issues in long-running series like the Eagle. First Strike rarely carries a premium.

• Identical Grade Population: A MS-69 First Strike coin has no premium over a regular MS-69 example.

• Sold Out Issues: On rare, sold out coins, value depends only on grade and population – not arbitrary First Strike claim.

The savvy collector does not overpay for labels. You should pay for the coin, not the plastic. Now let‘s compare some real market prices.

First Strike vs Regular Strike: Actual Market Values

Let‘s compare real sale prices of First Strike versus regular coins. This will demonstrate how little impact the label carries on market value.

The price difference on these modern coins is negligible – certainly not worth paying large premiums for!

In many cases, regular strikes actually sell for equal or higher prices than their First Strike counterparts. The market values them identically.

So don‘t fall for the marketing tactics. Focus on buying the best coin you can afford, not overpaying for unsubstantiated designations.

How to Identify Truly Rare Coins

Hopefully by now I‘ve convinced you not to overpay for First Strikes! But if you want to find coins that are genuinely scarce and valuable, here are insider tips on identifying true rarity:

• Low Original Mintage: Look for coins with mintages under 100,000, or especially under 25,000. These can have real scarcity value.

• Key Dates: Certain years like the 1921 Morgan Dollar command huge premiums due to tiny mintages.

• Condition Rarity: Even high mintage coins can be rare in pristine grades like MS-67 or higher.

• Special Varieties: Die errors and varieties like doubled dies and overdates are scarce in all conditions.

• Demand: Series like early gold Eagles with multi-million mintages can still carry high values in top grades due to demand.

While First Strike aims to generate artificial scarcity, the characteristics above create genuine collector value. Study coin trends and research key dates, varieties and low populations to gain market advantages.

Should You Submit for First Strike?

In some instances, it can be worthwhile to submit new releases for First Strike designation. This includes:

• Brand new series you want to complete in perfect grade.

• Very low mintage coins (under 25k mintage).

• Special privy marked or label variants.

But realize any premium is short-lived. You‘ll still need to sell before others flood the market with submissions. Once the mintage sells out, First Strike carries no sway.

For most modern coins, you can save substantially by buying raw coins and having them graded later during regular submission periods. Be selective when playing the First Strike game.

Conclusion: Focus on Quality, Not Hype

The reality is First Strike carries little overall weight compared to scarcity, grade and demand. This leaves two clear lessons for smart collectors:

1. Don‘t Overpay for the Label

Buy the coin, not the holder. In many cases, you‘ll get equally nice coins for less by ignoring First Strike premiums.

2. Cherry-Pick True Rarities

Study the market to identify legitimately scarce coins. Low mintage, key dates and varieties offer real value – not gimmicks.

By avoiding hype and sticking to coins with genuine rarity, your collection will grow in value over time. Quality over marketing, my friend. Here‘s to the joy of the hunt!

Your fellow collector,

Jason Striegel