This article was first published in the first-quarter 2013 edition of Personal Finance magazine.
The phrase “rich in history” takes on a new meaning when it comes to military medal-collecting as an investment. Not only does the value of medals grow year on year, but surely no other vehicle for investment comes with so much history and intrigue.
Each medal is testament to one man’s courage and endurance through some of the most turbulent periods in history – a carefully crafted token of appreciation for the agony, misery and glory of some of the greatest battles witnessed by humanity.
And these “tokens” range in price from less than R1 000 to R20 million, depending on the associated circumstances and history.
Michael Kaplan, director of the long-standing family firm of Alec Kaplan and Son in Johannesburg (www.aleckaplan.co.za), says the value of standard campaign medals has increased by five percent a year over the past seven years, while the value of decorations for gallantry has increased by 15 percent, easily withstanding the economic downturn and outstripping many other forms of investment.
“Medals are a great investment,” Kaplan says. “The reason is simple: the number of collectors is increasing, while the number of medals is not. Demand is booming and supply is dwindling.”
Kaplan’s firm holds medal auctions every three months. “I would hold more if I could get the stock,” he says ruefully.
Johan Louw, medals consultant to City Coins in Cape Town (www.citycoins.com) and a collector for more than 50 years, believes the growth in the market for medals comes down to the internet and television, which have stimulated an interest in family history.
“We have people coming to us not to sell their medals but to find out the story behind them. They are wondering what grandpa did to earn them and [are] hanging onto them rather than selling them.
“Then there are collectors who have an interest in a family name, a certain period of history or a ‘good story’ – something they can relate to. Consequently, good-quality medals are becoming more and more difficult to find,” Louw says.
Pierce Noonan, director in the medals department of leading London auction house Dix Noonan Webb (www.dnw.co.uk), confirms that the trend in medal values continues to be “strong and upward”.
“I would hesitate to put a figure on it, because there are so many variables, but interest is growing and more investors are coming into the market. They have lost faith in the financial markets, and there is not much to be gained from keeping your money in the bank with interest rates so low.
“The medal market is so much more accessible now than it used to be. Any serious investor can look back at our catalogues on the internet and see for themselves the trends and compare prices over many years. With medals, they have an investment that is portable and one that they can control. It has the added interest that a little bit of research can greatly increase the value of a medal,” Webb says.
The decision to start collecting medals as an investment needs careful consideration: it is fraught with risk, not only in terms of gains and losses, but because it can become so addictive that realising the investment becomes a painful exercise, or is left to the next generation. But once the investor has taken the step, he or she becomes part of a network of generous fanatics who share their time and knowledge through bodies such as the South African Military History Society (www.samilitaryhistory.org) and the Anglo-Boer War Forum (www.angloboerwar.com).
In South Africa, interest in military medals is naturally focused on the campaigns fought by the British and colonial forces against the Xhosa and Zulu peoples, the two bloody Anglo-Boer wars, the world wars in which South African armies played such a disproportionate part, and the Border War of 1966 to 1989 on the borders of Namibia and Angola.
It is not for the collector-investor to moralise on the causes or righteousness of the conflicts; the real underlying value of any collection is its acknowledgement of the part played by the common man, willingly or not, in fulfilling the ambitions of politicians, many of whom have been acknowledged by having statues erected in their honour, and towns and suburbs named after them. Milner, Shepstone and others are household names, whether or not they are sleeping with clear consciences.
It is important to distinguish between “decorations” and “campaign medals”. Decorations are given for outstanding acts of bravery or service: the Victoria Cross (VC), of which 11 were awarded for the defence of Rorke’s Drift in the Anglo-Zulu War of 1879; the Distinguished Conduct Medal and the Military Cross from Great Britain; the Dekoratie voor Trouwe Dienst, awarded to Boer forces of 1899–1902; the Iron Cross of Germany; the Honoris Crux of the Republic of South Africa. Decorations carry a correspondingly higher premium, because they are so readily identifiable and rare, and because information about the recipient is available through the citations and accounts of the actions.
Campaign medals were awarded for “being there”. They go back, as general issue to the common soldier, to the Peninsular War fought by Wellington on his way to Waterloo in 1815. On the naval side, medals for the Battle of Trafalgar in 1805 are much sought after, ranging in price from £5 000 to £50 000 (R65 000 to R650 000).
As always in commodity investing, the highest-quality items command the greater growth. But the price range for just one issue of a medal can be vast – and therein lies the fascination. The colonel’s batman, who spent his service polishing the Old Man’s boots, was awarded the same campaign medal as the poor ol’ private who trudged for miles in the baking sun or freezing cold and ate dirt and spat blood when the bullets were flying.
But there are distinguishing features that might set these two recipients apart: first, the clasp, a little bar across the ribbon of some medals denoting the battle or the years in which the recipient fought. The colonel’s batman may have the Queen’s South Africa medal for the Anglo-Boer War of 1899–1902, but he won’t have the clasp “Talana”, “Elandslaagte”, “Laing’s Nek” or “Diamond Hill”, given only to those who were actually involved in those battles.
And then there is the naming of the medal. Each man’s name, rank and regiment was inscribed on the rim of the medal in various ways (except those awarded to British soldiers of World War II), and, in many cases, the collector can trace the man’s record of service.
In Britain’s National Archives it is possible to read the original regimental muster books, which were returned each month to the War Office until about 1890 so that the Treasury could account (as always) for the money spent. The musters record when the poor ol’ private was docked pay for being drunk, when he spent time in the cells for some misdemeanour that meant he drew no pay, all the way through to when he left the service, or was noted as “killed in action” or “died of disease”.
In South Africa, service records are held at the archives in Pretoria. The Anglo-Boere Oorlog medal, awarded to Boer veterans, is particularly interesting. This award was instituted only in 1920, when fighters from both sides came together at the staff college. Those who had fought on the British side were bedecked with medal ribbons, whereas those of the vanquished foe had nothing, so a decision was made to remedy the situation by recognising the struggle of the Boer forces. Fortunately for historians, those applying had to state, on Vorm B, where and when they fought and with which commando, and have it counter-signed by a responsible authority who could vouch for the recipient. This has left a remarkable record of valiant stands at battlegrounds such as Spion Kop, Colenso, Dundee and Bakenlaagte. The medal was not awarded to those who had surrendered, or taken parole or the oath of allegiance prior to May 31, 1902. Fighters could also apply for a wound ribbon, detailing their injuries and where they were received.
South Africans in World War II are also easily identifiable, for all the campaign stars and medals and their Africa Service Medals were named, as were other Commonwealth issues.
As with all investments in collectables and memorabilia, the investor needs to be wary, because fakes, forgeries and copies abound. Merely changing the name on the rim of a medal, or adding a clasp, will dramatically alter the value of the medal. Take, for example, a Crimea War medal awarded to a man of the 6th Regiment who endured the hardships of the Battle of Alma or Balaklava. That would be worth, perhaps, R5 000, but one awarded to a man who was at the Battle of Balaklava in the 11th Hussars would fetch at least R150 000, because he would have taken part in the famous Charge of the Light Brigade, that monumental act of folly that saw the Light Cavalry Brigade’s regiments suicidally charge the Russian cannons, with appalling loss of life and no gain.
Again, an Anglo-Zulu War medal (officially called the South Africa Medal 1877–79) awarded to a man of the 21st Foot, called up after the dreadful defeat of the British at the Battle of Isandlwana, would be worth, say, R4 000, but a similar medal to man killed at Isandlwana is worth about R80 000. For example, the medal issued to Sergeant John Lines, second battalion, 24th Foot, was given a guide price of £5 000 to £6 000 (R65 000 to R78 000) by a London auction house last year but sold for £7 800 (just over R100 000). A similar medal issued to one of the 150-odd men who withstood the attacks at Rorke’s Drift would realise many times as much again. One was sold by Dix Noonan Webb in 2010 for £25 000 (about R325 000). Back in 1879, that private was earning a shilling a day.
Even a “common” Anglo-Zulu War medal, to the 94th Regiment, with a clasp “1879” denoting service in Zululand (those who did not cross the Buffalo River and stayed in Natal did not receive this clasp) could harbour valuable stories.
The 94th remained in South Africa after the defeat of the Zulus at the Battle of Ulundi, embarking immediately thereafter on a gruelling campaign against Sekukuni, king of the Marota. After months of marching, campaigning and action in the bush, their uniforms were in tatters, patched up with any available material, including sheepskin. It was these men of the 94th who were overwhelmed, with great losses, by the Boers at Bronkhorstspruit, launching the First Anglo-Boer War (1880–1).
Similarly, just weeks afterwards, men of the 58th Regiment who had fought at Ulundi in the war against the Zulus were cut down by the Boers at Laing’s Nek, and more of the regiment were to die in the Battle of Majuba. No medal commemorates these particular actions. The British did not acknowledge failure. The survivors, or their families, have only the Anglo-Zulu War medal, but it makes their experience much more poignant.
So there is much to be gained by the forger or faker who might acquire a fairly common medal, grind away the recipient’s name on the rim and replace it with one who was in more exulted company; or he might substitute the clasps to make the medal more attractive.
All of these tricks are fairly easily identified, and dealing through companies such as Kaplan’s or City Coins, another long-standing family firm with global connections, is the most effective way of avoiding such pitfalls. That, and experience, aided by publications such as British Battles and Medals, which is published by leading medal specialist Spink and pictures and describes not only every medal issued by Great Britain but most of those issued by its allies, and provides precise detail as to the style of naming on the medal and clasps. The Medal Yearbook by John and Philip Mussell (Token Publishing) is even more comprehensive in its descriptions of medals from around the world and approximate values. Numerous magazines, including Medal News (also Token Publishing), keep the investor-collector up to date.
As an example of the investment potential captured in these publications: a South Africa Service Medal with a clasp denoting service in the years 1877–78–79, as issued to men of the 24th Regiment, was listed in The Medal Yearbook seven years ago at £250 to £260 (R3 250 to R3 380); the 2012 edition has it at £450 to £500 (R5 850 to R6 500), but traditionally, the medals sell for much more. One was offered by Wellington Auctions last month with a guide price of £1 000 to £1 200 (R13 000 to R15 600).
The medals, which are works of art themselves, cast in various metals and evocatively and symbolically engraved, have wonderful quirks.
Back to our old friend, the Queen’s South Africa Medal for the Anglo-Boer War of 1899–1902. It is so named because it was issued in the reign of Queen Victoria, the last of many battles fought in her name. (There is a King’s South Africa Medal, too, but let’s not get mired in detail.) The British authorities were so delighted when Pretoria fell that they minted a medal for their forces. It was dated 1899–1900 and embossed with the winged figure of Victory, arms outstretched to ranks of men at her feet, with ships at sea on the horizon. Unfortunately, the Boer generals Jan Smuts, Christiaan de Wet, Ben Viljoen and others did not see things in quite the same way, and the war continued for another two years in a series of painful guerrilla actions. The authorities had to withdraw the medals hurriedly.
Some medals with “1899–1900” still exist: they were given to a Canadian regiment, Strathcona’s Horse, who had fulfilled their contract that year and decided enough was enough. But as the war dragged on, the mint back in England merely ground off the dates from the dies and used them for early issues to returning regiments, creating what is known as “ghost dates”. In certain light, the dates can still be seen. A third version was eventually made in which the dates never featured.
Or you could seek out the “no-action” medal, which was struck to commemorate the Pioneer Column of 1890 that led to the white occupation of what later became Rhodesia, with no action being fought. It is the identical medal to those given for the First Matabele War (1893–1894) and the Matabele and Shona rising of 1896, except that while those medals have the campaign inscribed on them, the Pioneer Column medals are blank. Only 200 of the 750 men of the Pioneer Column claimed the medal, and one was sold by City Coins in 2009 for R20 000. The later medals, which involved more hardship and danger, are more reasonably priced. Incidentally, that medal, known as the BSA Company medal, shows a charging lion wounded by an assegai. The War Office was most insistent that it should not be a “British” lion, and the engraver assured them that it was no slight on the Imperial honour, and that it was, in fact, an African lion. Yes, well …
Nearly 100 years later, medals were issued to British personnel who oversaw the ceasefire in the Rhodesian Bush War in 1980. They saw no action, but 2 500 men and women received the Rhodesia Medal and their rarity increases their value.
The wonderful thing about collecting and investing in medals is that you can do it on any scale because of the price range and diversity.
Take the Second Anglo-Boer War: a total of 26 clasps were awarded in various combinations. Some investors concentrate on the sieges – Ladysmith, Mafeking and Kimberley, each of which is commemorated by clasps for the defence and relief of those beleaguered towns. Or you could focus on the medals in honour of the unsung, hardy souls who made up the town guard – volunteers who turned out to protect their towns. There were 123 issued in all, but only four were claimed by the good men of De Aar, for example. But they are easily affordable and form the basis of many an investment portfolio.
The value of a collection may be quite modest or in many millions of pounds, such as the collection amassed by one of Britain’s wealthiest men, Lord Ashcroft, who owns about 130 Victoria Cross groups, the largest collection of VCs in private hands. Among them is the VC earned by Lieutenant John Chard, one of the officers commanding Rorke’s Drift. Ashcroft paid a world record price of £1.5 million (R19.5 million) for a VC and bar awarded for the heroics of Captain Noel Chevasse in World War I – the bar denoting that he won the VC twice.
On a lesser but no less interesting scale, you could concentrate on colonial regiments: medals awarded to such diverse units as the Chalumna Mounted Volunteers, the Amatembu Regiment and the Abalondolozi Regiment. The Cape of Good Hope Medal, issued for actions in Bechuanaland, Basutoland and Transkei between 1881 and 1897, is a wonderful example of this.
Interest in colonial units is naturally higher in South Africa than overseas, but the stories of these volunteers are varied and intriguing.
Often, the soldier was awarded more than one medal in a period of service and accumulated a “group”. The worst thing a collector can hear is that some well-meaning father split the group and gave one to each son. For example, a hard-pressed infantryman in the 60th Rifles (The King’s Royal Rifle Corps) was sent out to the Anglo-Zulu War, for which he received the South Africa service medal. Then, in 1882, he was sent to Egypt to take up yet another fight, enduring at least three major battles, earning himself the Egypt Medal, plus a star from the grateful ruler of Egypt, the Khedive. Individually, they would be worth about R120 000; as a group, about R160 000.
Louw believes the next surge of interest in medals will come with the centenary of the start of World War I in 2014. The famous trio of medals, made up of the 1914–15 Star, the British War Medal and the Victory Medal, is a familiar sight in many antique shops, with a price of about R400 to R500.
If the Star is, in fact, the 1914 Star inscribed with “August to November 1914”, denoting a soldier who was there at the start of the war, it can command a price of about R1 000; if he became a casualty, the price rises to R3 000.
The growth in the value of medals is outstripping that of coins, because the market is based on emotion. Apart from the historical interest in the medals, Kaplan says there are collectors who do not place any premium on the condition of the medals.
“There are those who want high-quality medals in mint condition, but those are medals that have been put aside, hidden in a drawer, largely forgotten. Then there are those that are a bit battered and polished, and collectors want those, too, because they have been worn with pride by the men who won them.”
Coins, on the other hand, are graded according to their condition, as well as their rarity, and their prices are adjusted to reflect this. And really, a coin is a coin, each a clone of the other, but a medal is individual, and rich in history.
* Mark Salter is a freelance journalist newly returned to South Africa from the United Kingdom and working on his second collection of military badges and medals.
TAX IMPLICATIONS
In terms of the Income Tax Act, so-called “personal-use assets” are disregarded for the purposes of capital gains tax. Personal-use assets are used mainly for purposes other than the carrying on of a trade, and the tax-exempt status applies only to assets held by natural persons or special trusts. Assets held by a company or trusts other than special trusts are subject to the normal tax rules.
The assets that fall within this exemption would typically include furniture, jewellery, antiques and collectables, art, sports equipment and motor vehicles for personal use. A collection of medals would fall into this category unless the medals were regularly bought and sold with the main aim of making a profit.
On the death of the natural person, the medal collection would be subject to estate duty on the value at the date of death. – Kari Lagler, independent tax consultant