Search for badges of honour that all have a story to tell

Collectors frequently enjoy the hunt to find medals relating to the same person or event, often researching the individual's background and the circumstances that led to a specific award.

In the process, they can be rewarded by good returns on their initial outlay.

In the UK, most buyers are from Australia, UK and US, the latter notably for the Peninsular War (1808-14) between the French under Napoleon and English, Portuguese and Spanish under Wellington. American collectors also look for Waterloo medals, commemorating brave action in June 1815, which made 50 plus in the 1970s.

Now, expect to pay 1,000, depending on the regiment, rank and condition.

The Victoria Cross is regarded as the supreme service decoration. It is awarded for conspicuous bravery, usually to members of the British and Commonwealth armed forces. It was first instituted by Queen Victoria in 1856 and struck from bronze taken from two Chinese cannons captured from the Russians at the seaport of Sebastopol during the Crimean War of 1854-55.

The VC consists of a cross paty of bronze with the royal crown surmounted by a lion in the centre and, beneath, the inscription 'For Valour'. It was designed by Charles Hancock, founder of the London jewellers that continue to manufacture the medal.

The first 62 men to win the medal had it presented by Queen Victoria herself in a ceremony in 1857.

It came with an annual pension of 10, equivalent to over 6,000 today but recipients now have 1,495.

To date, there have been 1,357 VCs awarded including three double VCs and one to the US Unknown Warrior. Just 12 foreigners have received the award including nations from Denmark, Sweden, Switzerland and the USA. Just nine VC recipients survive.

The largest VC collection to be built up in recent years has been achieved by Lord Ashcroft, who has generously loaned 164 VCs and one George Cross to the Imperial War Museum for 10 years. The medals went on display last month and Ashcroft, the former deputy chairman of the Conservative Party, gave 5m to help the museum, which holds 48 VCs and 31 George Crosses.

The first VC was awarded to Charles Lucas for action in June 1854 and a copy is displayed in the National Maritime Museum in London as the original was lost. John Bythesea received the second VC for Crimean war bravery in August 1854 and is in the Ashcroft collection.

In April Spinks sold the first VC to be awarded to a British army soldier – Major John Knox – along with a cannonball which is reputed to have blown his arm off.

It is usual in such sales for related medals and material to be sold together and the VC was auctioned with three further medals, two portraits, a cap badge and a belt plate for 252,000.

To gauge other VC prices, Spinks report that their top prices (apart from Knox) over the past five years (including 20 per cent buyer's premium) were:

n Fl Lt W. Reid sold November 2009 for 348,000;

n Wing Commander H.G. Malcolm sold April 2010 for 252,000;

n Admiral of the Fleet Sir Nowell Salmon sold July 2010 for 228,000;

n Real-Admiral John Bythesea sold April 2007 for 155,350.

John Millensted, head of the medals department at auctioneers Bonhams, says First World War VCs were selling for around 20,000 in 1995 and have quadrupled in price. Few Second World War ones have appeared on the market recently and now realise around 120,000, but were between a quarter to one-third five years ago.

Before the VC, the highest military award was the Order of the Bath, but this was given only to senior officers.

The George Cross is presented for bravery while not under enemy fire. The first living recipient of the medal since 1965 was Private Johnson Beharry for remarkable acts of bravery in Iraq after he saved members of his unit during separate ambushes in 2004. Olaf Schmid's George Cross awarded for bravery in Afghanistan in 2009 is on loan from his widow at the Imperial War Museum.

Prices for Boer War awards look underrated, says Millensted, even though a DSO group to cavalry has tripled to 6,000 in 15 years.

The awards cover the two Boer Wars: 1880-01 against the Transvaal, which had proclaimed its independence and 1899-1902 against the Transvaal and the Orange Free State, resulting in the annexation of the states by Britain.

A good starting point at a low cost might be a trio of First World War medals, such as the 1914 star, British war medal and Victoria medal, which cost around 55 in total.

The top awards from the First World war have settled back after a surge in price five years ago. British insignia like the Royal Victorian Order and Order of the Bath Star look undervalued, says James Morton of auctioneers Morton & Eden.

Second World War gallantry medals look reasonable, tips Millensted. Many such awards remain with the families. With RAF medals, look for the flying books for the award-winning missions and for the related paperwork for the other armed forces. Such material can add 15-20 per cent to the value.

If the service information is missing, trace it through the National Archives based at Kew in south-west London.

Some medal enthusiasts look for more recent conflicts and unusual events.

Typical of this are the awards presented to Sgt Tommy Palmer, an SAS soldier who fought in the 1980 Iranian embassy siege in London. They realised almost 100,000 at Bonhams in September.

The military cross is quite rare even though it is now awarded beyond officers to any serving personnel. Morton & Eden offer a military cross awarded for action in Iraq in 2006 at their next sale on November 30 which is estimated at 18,000-22,000. A 2001 Afghanistan example made 29,000 plus buyer's premium four years ago.

Apart from the auction houses mentioned, the leading dealer is Timothy Millett, who is a member of the prestigious British Antique Dealers' Association. He regularly exhibits at the leading antiques fairs.

n Contacts: Bonhams 020 7393 3914, Millett 020 8693 1111, Morton & Eden 020 7493 5344, Spinks 020 7563 4061.

Reward for act of bravery

Charles Lucas was the first recipient of the Victoria Cross.

On June 21, 1854 in the Baltic, HMS Hecla, with two other ships, was bombarding Bomarsund, a fort in the Aland Islands off Finland.

The fire was returned from the shore, and at the height of the action a live shell landed on Hecla's upper deck, with its fuse still hissing.

All hands were ordered to fling themselves flat on the deck, but Mr Lucas ran forward and hurled the shell into the sea, where it exploded.

Thanks to Mr Lucas's action no one was killed or seriously wounded and he was immediately promoted to lieutenant by his commanding officer.