The centenaryof the First World War has reminded us of the extraordinary heroism of those who fight for their country.

And while medals earned by wartime heroes may be beyond value to their relatives, the cold fact is that these awards can command huge prices.

Last month, the medals of "Clem" Clements, who won three awards for gallantry during the Second World War, sold for £98,400, more thandouble the estimate, at Spink, the auction house.

Also sold were the medals won by Spitfire hero RF "Pied Piper" Hamlyn, which realised £90,000 - again, far above their estimate.

With military medals it is the recipient's story and the rarity of the medal that determine the price. The Victoria Cross and Bar awarded toCapt Noel Chavasse for his service in the First World War were sold to Lord Ashworth, the medal collector, for a reported £1.5m in 2009. They are nowin the Imperial War Museum. And the posthumous VC awarded to New Zealander Capt Alfred Shout, who was killed at Gallipoli, sold for more than£490,000 in 2006.

Medals from more recent conflicts command big prices too: the sale of Falklands bomb disposal hero John Phillips's Distinguished Service Crossrealised £120,000 when sold by specialist auctioneers Dix Noonan Webb in 2011.

Those who sell medals seldom do so lightly, but they should be comforted by the respect the buyers have for them.

Nick Thompson, a medal valuation consultant for auctioneers Richard Winterton, said: "I am always saddened that any medals are on sale ratherthan being where they were intended: with the recipient or family. However, almost all collectors I know see themselves as the current custodian andtreat the medal with the respect it deserves."

Oliver Pepys of Spink added: "On the whole, people don't buy medals for investment reasons. It is primarily a hobby, but one where youshould hopefully see a return."

Medals can be divided into those awarded for gallantry and those for taking part in a campaign. The first campaign medal was awarded to many ofthose who served under Oliver Cromwell in the Battle of Dunbar in 1650. But the first campaign medal awarded to every participant was the WaterlooMedal of 1815.

For collectors, "top of the tree is the Victoria Cross (whose inscription is "For valour") - they are the holy grail of medalcollecting", said Mr Millensted. There are just 1,357 VCs in circulation. Mr Pepys added: "VCs were first awarded in 1856 and backdated tothe Crimean war of 1854, so they have been around for 150 odd years.

"But the nature of warfare has changed and the opportunity for awarding VCs is far less than it was. In the Great War you could be awarded aVC for pulling a wounded colleague back from no-man's-land but nowadays warfare is more scientific. Far fewer VCs are awarded and they aretherefore more scarce and potentially more valuable."

Prices of VCs are rising. Dan Wade of Paul Fraser Collectibles said: "A Victoria Cross could achieve around £10,000 in 1990. The record pricefor a single VC now stands at £678,662 (awarded to Australian war hero Ted Kenna), with prices routinely surpassing £200,000 for examples from theFirst World War."

To read the complete article, see:
The war medals thathave soared in value (www.telegraph.co.uk/finance/personalfinance/investing/11280125/The-war-medals-that-have-soared-in-value.html)