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Your dealer that offered you $40 bucks was only trying to rip you off. No way i'd be going back there again.
I have met many coin dealers I like a lot, and none that I trust.
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The pictures in this thread are no where near good enough to be drawing conclusions
Here is the Swedish auction house photo - unaltered except the <300kb mandatory CCF resize.

I took one look at that and thought 'go to NGC cert lookup' and the bottom image of yesterdays post is what is there - no retouch, no games - I
cannot provide a better image.
One American auction site does magnificent coin photography that sets them apart from the rest - and that is where I mostly browse coins.
So my point? You don't need a nice coin with eye appeal to get an EF grade from NGC. Blind freddy can see something's a bit dippy there.
TPG's like NGC and PCGS will happily grade a dipped coin, as they don't consider throwing a coin in acid to be cleaning.
For decades many of Australia's leading Coin traders spent many happy hours removing patination from thousands of coins, and some of them still do.
While I do like Australian shillings, I have no particular love for the year 1911, I chose it here to create a scope baseline and some consistency.
The 1912 for example is far more interesting and valuable as are the 1913/1914/1915/1915H/1921s/1933/1940...
Is the raw 1911 here a nice coin? heck yes, without a shadow of doubt.
It has zero chance of an MS grade because it has indistinct high pearls, which people would consider unacceptable wear, even though the Monde (orb) and cloak are excellent.
[Most sub-MS 1911 shillings exhibit weak top pearls] It also has micro-scratches from a light clean with a post-rinse rub with a fibrous piece of paper or cloth at some point in it's lifetime.
All of that ^ is my opinion, but I do value other's opinions which is why I asked for them here.
Back on topic which is essentially is 'Are some MS graded coins unworthy of the grade?' In my opinion - yes.
If CCF will let this thread live on - I have some more images of MS graded 20th century Australian coins with visible wear. I will post them as time permits.