Although gold Sovereigns possess an intrinsic value based on their gold content, their desirability, and therefore their premium value to a collector, will depend also on the condition or grade. The better the grade, the higher will be the value of its premium over its gold content.

Proof coins were originally pre-production samples. The mint would produce proofs for the approval of the monarch. When coin collecting began to become popular at the end of the eighteenth century, mints produced a larger number of proofs for sale to collectors. In the past few decades, most countries now mint proof coins every year and to celebrate important occasions.

Uncirculated or Unc.
This is a coin in absolutely new condition; and exactly as it would be if it were issued by the mint. This is a coin that has not experienced any circulation. However, this term does not mean that the coin is perfect because it will or may show sign of manufacturer and bag-marks. Depending upon the dealers' opinion, some older gold coins may also show some signs of toning.

Almost Uncirculated or A.U.
In Uncirculated Condition, as issued by the mint, but not necessarily in perfect condition as a result of its manufacture, and distribution. Some dealers se this terminology when there is some very slight abrasion or "cabinet polish" on the high points of the coin.

Bullion Sovereigns
For many years, the word bullion as applied by dealers to gold Sovereigns meant gold Sovereigns that were traded wholly or mainly on the basis of their gold bullion value, without reference to their date or grade.

The Royal Mint, since the year 2000, has used the word "bullion" to mean ordinary uncirculated coins. This now creates confusion because dealers will generally refer to bullion Sovereigns with its original meaning. Customers of the Royal Mint will expect all "bullion" coins to meet the Royal Mint's definition.

EF or Extremely Fine (US = XF)
Such a coin will show few signs of having been in circulation, but may exhibit slight surface marks or faint wear on close inspection.

VF or Very Fine
Some wear on the raised surfaces, but still very sharp and pleasant.

Fine or F.
Considerable signs of wear on the raised surfaces, or design very weak through faulty striking.

Fair
Badly worn, but with the inscriptions and main features of the design still distinguishable, or a piece which is very weakly struck.

Poor or Worn
This is a very worn coin, with some lettering worn away, or parts of the design not visible. A poor coin is of no value to collectors unless extremely rare. However, a Sovereign will still have its bullion value.

Almost or About
When combined with one of the above descriptions, it means that the coin is almost but not quite as good as the grade itself.

Good
When combined with one of the above descriptions, this means that the coin is in better condition than the grade itself.

Go to: Ebay

Ebay sellers seem to have developed their own grading terminology; with words such as "new", "nearly perfect", "as seen", and so on, appearing regularly in advertisements. As these coins are in fact being bought unseen, the old maxim buyer beware should always be born in mind.