Definition of numismatic coin

coin that is valued based on its rarity, age, quantity originally produced, and condition. These coins are bought and sold as individual items within the coin collecting community. Most numismatic coins are legal tender coins that were produced in limited quantities to give them scarcity value. They are historic coins which also can be rare. The current price of gold is a minor factor when dealing with numismatic coins. Premiums are traditionally far higher than those of bullion coins, and values fluctuate to a much wider extent. For example, a $5 gold piece may contain $60 worth of gold and may sell for as much as $700. The minimum amount recovered from numismatic coin investments is always either its face value or its metal content. Most coins, however, sell substantially above these amounts. Since the markup over bullion value can vary widely from one dealer to another, investors need to shop around diligently to avoid paying exhorbitant markups.