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Thoughts? Is This a First: "NGC-CFC Numismatic Loan Program"

RichRRichR Posts: 3,841 ✭✭✭✭✭

Email just received today...not sure this is a good idea...do they take physical possession of the "collateral"?

NGC is excited to partner with Collateral Finance Corporation (CFC) to offer NGC members the opportunity to apply for a commercial loan at a special rate using their NGC-graded coins as collateral. Effective now, NGC members can apply for a numismatic-backed loan, which offers cash liquidity without having to sell assets. To celebrate the partnership, CFC is offering a special introductory rate for new clients who apply at NGCloan.com.

Comments

  • sellitstoresellitstore Posts: 2,368 ✭✭✭✭✭

    They have been offering this for several years now.

    Does anyone here have any experience with this arrangement?

    Collector and dealer in obsolete currency. Always buying all obsolete bank notes and scrip.
  • Manifest_DestinyManifest_Destiny Posts: 3,047 ✭✭✭✭✭

  • I'd be worried that when the music stops the Loan program's vault has like 10% of the silver/gold that it was supposed to be holding, and your collection is never recovered. It's happened in the past and nothing is stopping it from happening again.

    The substantial truth doctrine is an important defense in defamation law that allows individuals to avoid liability if the gist of their statement was true.

  • JW77JW77 Posts: 450 ✭✭✭✭✭

  • RichRRichR Posts: 3,841 ✭✭✭✭✭
    edited February 6, 2024 10:02AM

    Personally...and I use NGC often...but this has a kind of pawn shop-y/loan shark-y feel.

    Does PCGS offer anything similar?

  • tyler267tyler267 Posts: 1,233 ✭✭✭✭

    I needed some money about 10 years ago so I called them. The investment I needed the money for fell through so I never closed the loan with CFC, but the process was easy and the rates seemed fair.

    CFC has been in business for a long time and is a subsidiary of AMARK. CFC is short for Collateral Finance Corp. It's easy to look them up on the internet.

  • privatecoinprivatecoin Posts: 3,142 ✭✭✭✭✭

    Yes. Back with a bunch of modern clad pr69 nickels and dimes.

    Paper money eventually returns to its intrinsic value. Zero. Voltaire. Ebay coinbowlllc

  • MFeldMFeld Posts: 11,750 ✭✭✭✭✭

    @RichR said:
    Email just received today...not sure this is a good idea...do they take physical possession of the "collateral"?

    NGC is excited to partner with Collateral Finance Corporation (CFC) to offer NGC members the opportunity to apply for a commercial loan at a special rate using their NGC-graded coins as collateral. Effective now, NGC members can apply for a numismatic-backed loan, which offers cash liquidity without having to sell assets. To celebrate the partnership, CFC is offering a special introductory rate for new clients who apply at NGCloan.com.

    My guess is yes. Otherwise, their loans could end up unprotected, and far too easily.

    Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.

  • Project NumismaticsProject Numismatics Posts: 1,284 ✭✭✭✭✭

    @tyler267 said:
    I needed some money about 10 years ago so I called them. The investment I needed the money for fell through so I never closed the loan with CFC, but the process was easy and the rates seemed fair.

    CFC has been in business for a long time and is a subsidiary of AMARK. CFC is short for Collateral Finance Corp. It's easy to look them up on the internet.

    What advance rate did they offer? Was it cheaper than an unsecured personal loan?

  • AlanSkiAlanSki Posts: 1,657 ✭✭✭✭✭

    What prices do they use for the coins? The website prices or??

  • tyler267tyler267 Posts: 1,233 ✭✭✭✭

    @Project Numismatics said:

    @tyler267 said:
    I needed some money about 10 years ago so I called them. The investment I needed the money for fell through so I never closed the loan with CFC, but the process was easy and the rates seemed fair.

    CFC has been in business for a long time and is a subsidiary of AMARK. CFC is short for Collateral Finance Corp. It's easy to look them up on the internet.

    What advance rate did they offer? Was it cheaper than an unsecured personal loan?

    It was a long time ago. I don't remember the dance rate, the interest rate was a lot lower than I expected definitely a lot cheaper than a unsecured loan.

  • jt88jt88 Posts: 2,781 ✭✭✭✭✭

    If you can, borrowing from your 401K is a much better idea because you paid interest to yourself. The only cost is the admin fee and the lost of opportunity for the money for investment.

  • alaura22alaura22 Posts: 2,488 ✭✭✭✭✭
    edited February 6, 2024 8:08PM

    @jt88 said:
    If you can, borrowing from your 401K is a much better idea because you paid interest to yourself. The only cost is the admin fee and the lost of opportunity for the money for investment.

    :)

  • jt88jt88 Posts: 2,781 ✭✭✭✭✭

    @alaura22 said:

    @jt88 said:
    If you can, borrowing from your 401K is a much better idea because you paid interest to yourself. The only cost is the admin fee and the lost of opportunity for the money for investment.

    And don't forget the TAXES on the withdrawal, that's the biggest proble with that

    No, this is not a withdrawal, it is a loan. no tax to pay as long as you pay it back as schedule.

  • alaura22alaura22 Posts: 2,488 ✭✭✭✭✭

    @jt88 said:

    @alaura22 said:

    @jt88 said:
    If you can, borrowing from your 401K is a much better idea because you paid interest to yourself. The only cost is the admin fee and the lost of opportunity for the money for investment.

    And don't forget the TAXES on the withdrawal, that's the biggest proble with that

    No, this is not a withdrawal, it is a loan. no tax to pay as long as you pay it back as schedule.

    Yes I agree
    BUT
    I'm reired doesn't apply to me and those who are

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