INVESTMENT The price of valour and the value of money
Joanna Pitman discovers the investment merits of military medals and rare — but not fake — coins ur gallant armed forces who face the daily horrors of Iraq and Afghanistan are often said to be undervalued by the public. But at least in the narrow financial sense, that cannot be said of historic acts of bravery and devotion to duty and the medals that commemorate them. Have you ever looked to see whether you have any medals lurking in your attic, perhaps won by a grandparent or ancestor for action in the field? Maybe the details of the original recipient's valour have been lost in the mists of time, but such information can still be retrieved from a local public records office or a regimental historian; and if you do have an interesting medal, it could become the starting point of a collection that might turn into a lifetime hobby and at the same time grow into a valuable investment.
'That's how most people start out with their collections,' says Mark Quayle of Spinks, which has been in the medal and coin business since 1666. 'They might come in with something they already own and then develop an interest and eventually a collection in that area. Some people specialise in medals from one particular regiment, or they focus only on casualty medals, or medals representing every campaign in a particular war, or even variations on one medal. The key thing is to find a theme and then we can help you to find out more and maybe think about adding to your collection. The market in medals is very strong and has been for some time. It's an attractive opportunity.'
Napoleonic war medals, particularly Waterloo medals, have always held their value well. 'There are lots of Waterloo medals around,' says Oliver Pepys, who also works in the medal department at Spinks. 'Many of them have been melted down over the years, because they're made of silver, but there are still plenty to be found. They are fascinating objects, and they often carry a human story with them. Lots of people collect them, and they can range in price from about £1,000 up to £20,000 for scarce ones.'
More expensive is the Victoria Cross. A rare, double-award VC was sold recently for £1 million and is now owned by the Imperial War Museum, but most VCs are valued in the £50,000-60,000 range. The medal has been awarded to individuals 1,356 times (including three double awards), but the whereabouts of about 900 are known. Of the rest, many of those that have passed out of the hands of the recipients' families are in public collections, but the largest private collector is Lord Ashcroft, the tycoon and Tory party benefactor, who has been buying them up for the past 20 years and is said to own more than 140 examples.
The first Victoria Crosses were issued at the end of the Crimean war in 1856 and were backdated to 1854. Many more were awarded during the Indian Mutiny, 70 for distinguished service during the Boer war and a smaller number in other 19th century conflicts. Six hundred were given out during the first world war and 170 in the second. A few more were handed out in the interwar period, but only 14 have been awarded since 1945, two of them for service in Afghanistan and one for Iraq.
'Interestingly, age is inversely proportional to value, so the more recent awards tend to go for more than the older ones because they are given out in far smaller numbers these days. It's far harder to win a , VC today than it was in the mid-19th century,' says Pepys, who is, incidentally, a cousin, 11 times removed, of the diarist Samuel.
Spinks holds three medal auctions every year. At one of their most exciting, in April this year, was an impressive array of 22 medals awarded to Air Chief Marshal Sir Basil Embry (see picture). The GCB, KBE, DSO and Three Bars, DFC, AFC and more sold as a group for £150,000.
The firm also holds six to eight coin auctions a year. The coin market, however, has been much more volatile than the market for medals. 'In the late 1970s and early 1980s, coin prices rose very dramatically and then crashed, causing a lot of burnt fingers,' says Jeremy Cheek, associate director of coins at Spinks. 'City money had poured in and was then withdrawn so the market crashed because there wasn't enough collector back-up. People have been very wary since then, but generally coin investors have very quietly been doing quite well. Those who have done best are those who bought when there was very little interest.'
The market for Russian coins has been growing fast recently. At an auction in March, a Russian coin came up with an estimate of £10,000-15,000. The bidding was heavy, and narrowed to three parties: a Russian collector on the phone from his private jet, a Swiss banker and another Russian buyer. The coin sold in the end for £82,000. 'These sorts of collectors are very serious and very knowledgeable. They know what's rare and what is valuable, and they will pay a great deal of money for something special.'
The Chinese coins market is another growth area. 'The Chinese are throwing money at that market,' says Cheek. 'To put it politely, many of these Chinese investors need educating. They tend to buy without doing enough research. There has been a huge influx of forged coins, mainly old Chinese coins and that's a big danger.' The last time Cheek was in Hong Kong to do valuations, he found that 90 per cent of the coins he was shown were forgeries.
English coin values have been climbing steadily. A Charles II pattern crown of 1663 by Thomas Simon, the 'petition crown', was sold in September for £207,100. And in June last year, an Edward III Double Florin or Double Leopard was sold for £460,000 on an estimate of £100,000-150,000.
Rarity and condition seem to be paramount in this market, for no matter how old your coin, if there are lots of them around they are worth very little. Even Roman coins, for example, many of which can be dated at more than 2,000 years old, are still unearthed in such large numbers that they typically fetch only £60 or £70 each. So, the lesson seems to be: do your research thoroughly, and tread carefully if someone tries to sell you either a Chinese coin or a Roman coin for a large sum of money.
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