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Grading a luger is very subjective and depends on whether you are the seller or the buyer.
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Wise words indeed.
The book is "The Luger Handbook" by Aaron Davis.
The grading system is on page xiii
And I know that this may not be the most comprehensive book on Lugers, but it's a start.
On being subjective for the grading, that is also true as it does make a difference whether the observer sees the Luger in person or by way of photos.