AS PIECES of metal, their intrinsic value may be relatively low, but as pieces of history, they can command six-figure sums. The market for military medals and awards is booming and attracting many new collectors.

The strength of the market has given rise to a run of record prices. Last year, a Distinguished Service Medal achieved a record £59,800 when it was sold at Spink, the coins and medals specialist. In April this year, another record was set, also at Spink, when a Victoria Cross (VC), the highest award for gallantry, was sold for £230,000, far exceeding the previous highest price for a VC of £175,000.

What is distinctive about the medals market is that there are plenty of buyers at all price levels. “People are buying at the lower levels from about £50 to £100,” says Richard Bishop, of Spink. “They are not investors at that level, but they are buying because medal collecting is a hobby and passion.”

Other auction houses also report strong demand. Paul Wood, of Morton & Eden, which runs coin and medals auctions in association with Sotheby’s, the auction house, says that the strength of the wide collecting base means that the market is less likely to collapse suddenly, as has happened in other areas of the art and antiques market.

Medals from the First World War are among the most popular, and not just the important gallantry awards. “In 2000, you could buy a standard First World War medal for £75 to £100. Today, they will be not much less than £300,” Mr Wood says.

The surge in interest has been fuelled by a number of factors. David Erskine-Hill, of Dix Noonan Webb, the auctioneers, says: “History programmes on TV, articles in newspapers and key anniversaries such as the recent D-Day events wake people up to historical events.”

Dealers also point to buyers wanting to put their money into something more interesting and rewarding than the stock market. Investment may not be the main factor that draws buyers, but the strength of the market in recent years and the rarity of some of the medals provides reassurance that they are unlikely to be wasting their money.

There is also a factor unique to British medals that draws collectors from all over the world. Mr Bishop says: “British campaign medals are sought after because they are all named and officially inscribed with the recipient’s name at the Mint before they are sent out. No other country does that.”

This official inscription opens the door to researching the story of the award through military records and regimental archives. The official inscription can also make for a big difference in price.

For most collectors, the opportunity to research the personal story of someone who played a part in a key historical battle or campaign is what fuels an interest. Photographs, letters and other documentation relating to medals and their recipients add to a medal’s value.

The VC sold at Spink in April, for example, belonged to Sergeant N. C. Jackson. During action in the Second World War, he climbed out of his Lancaster bomber at 22,000ft, while wounded, to put out a fire on the wing.

In Morton & Eden’s May sale, a medal that unusually was awarded to an RAF sergeant in recognition of his bravery fetched £4,715, more than doubling its lowest estimate. The medal was given to Sergeant William Magrath, who was one of the few survivors of the raid on the German airfield at Aalborg, northern Denmark, in 1940. After coming under attack, his plane ditched into the sea and he sustained serious injuries including losing his sight in one eye. After being taken prisoner, he was transferred to a series of prison camps but managed to escape from a camp in Rouen — one of the first prisoners to make a successful escape. He walked through France, crossing the Pyrenees, to reach Spain and then Gibraltar, where he rejoined British Forces in 1942.

In forthcoming sales, incredible stories of bravery are no less evident. On Thursday, Spink has a sale in London, where one of the top lots is another important VC. It was awarded to Subedar Major and Honorary Captain Agansing Rai, of the 5th Gurkha Rifles for his courage in leading attacks under fire to recapture a key Japanese position in Burma in 1944. It is the only VC awarded to a Nepalese soldier that has been offered at auction and is expected to fetch up to £130,000.

Behind VCs in the list of most desirable medals are important decorations from the Napoleonic wars. A large gold medal awarded after the Battle of Trafalgar could be worth £100,000 or more, while a smaller gold medal can fetch £50,000.

Spink’s sale next week includes two gold medals awarded to Major-General Sir William Ponsonby for action in the battles of Vittoria and Salamanca. The medals are expected to fetch up to £70,000.

Other important medals in forthcoming sales include the Ritchie Collection of Honourable East India Company and British India medals, which is to be sold in several parts by Dix Noonan Webb, with the first sale on September 17.

One notable lot in the collection is the group of medals awarded to Trumpet Major Robert Kells, of the 9th Lancers, which includes a VC won for bravery during the Indian Mutiny of 1857-58. The group of medals was last offered at auction in 1986 and fetched £13,000. When they come up at Dix Noonan Webb next March, they could achieve a price of more than £100,000.