Dozens of artefacts from the Third Reich condemned as being "morally repugnant" and "tools of the devil" went under the hammer at a public auction in Kalgoorlie-Boulder over the weekend as collectors look to snap up increasingly rare World War II relics as an investment.

Key points: Dozens of pieces of Nazi military memorabilia have been sold at WA auction

Dozens of pieces of Nazi military memorabilia have been sold at WA auction 'Grisly' trade condemned by Jewish group as 'morally repugnant'

'Grisly' trade condemned by Jewish group as 'morally repugnant' Most artefacts were wartime souvenirs collected by Australian soldiers

Two large Nazi flags bearing the swastika, which are illegal in Germany, sold for $1,500 and $1,000 respectively at the West Australian auction.

A Knights Cross, one of the highest awards for German troops during World War II, was sold for $1,250.

A book titled Adolf Hitler with photographs of the German leader's time in power sold for $375, while a nickel-plated bayonet and a metal flask engraved with a swastika fetched $750 and $120 respectively.

A Hitler figurine with a moving arm which performs the Nazi salute sold for $100.

Most of the memorabilia was from the estates of dead Australian soldiers who souvenired the items during World War II.

This figurine of Adolf Hitler, which has a moving arm so it can perform the Nazi salute, sold for $100 at auction. ( ABC News: Jarrod Lucas )

Nazi relics 'tools of the devil'

The Anti-Defamation Commission (ADC), a Jewish group that aims to fight anti-Semitism, condemned the auctioneers for profiteering from the Nazi regime which killed an estimated six million Jews in the Holocaust.

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Chairman Dvir Abramovich called for state and federal governments to immediately stamp out the "hawking" of such items.

"Even the pursuit of profits must have its limits, and this morally repugnant trade is wrong on so many counts and makes me sick," Dr Abramovich said.

"Mainstreaming these tools of the devil, that rightly belong in a museum, is a profound insult to the memory of the victims, to the survivors, and to the brave Australian soldiers who died in World War II to defeat Hitler's regime.



"We know that in the real world, anti-Semitic incitement, as represented by this evil paraphernalia, often results in violence and deadly attacks.

"As we witness the growing threat of white-supremacist organisations in our nation, we know that such groups have an appetite for these monstrous relics of oppression.

The Memorial to the Murdered Jews of Europe in Berlin remembers the victims of the Holocaust. ( ABC News: Jarrod Lucas )

"The tragedies at Pittsburgh, Christchurch and San Diego should prompt everyone to do some very serious soul-searching and to choose the high road.

"We call on all sellers to put morality before financial gain by withdrawing these grisly items from their shelves."

Dr Abramovich said Nazi items were sometimes listed for sale on online auction sites and his group was working with internet retailers such as eBay and Gumtree to stamp it out.

Collectors not just 'bikies and neo-Nazis'

This German motorcycle helmet sold for $300. ( ABC News: Jarrod Lucas )

Don Mahoney has worked in the military collectables industry since 1973 and operated his own shop in Melbourne for many years.

Mr Mahoney, whose father fought German troops in Africa commanded by the "Desert Fox" Field Marshall Erwin Rommel, said the global market for Nazi military memorabilia was worth "millions".

"We sell history. There's good guys and bad guys, and you can't change history," he said.



"Most of the items we were selling, they were brought home by our Diggers as a souvenir and given out to their families to say 'we won the war'."

The sale of Nazi memorabilia is banned in Germany. ( ABC News: Jarrod Lucas )

Mr Mahoney said most of the market was driven by private collectors who wanted to own a piece of world history's most notorious era.

He said Russian and Chinese collectors were among the biggest buyers of Nazi memorabilia.

"People think it's only bikies and neo-Nazis who are buying this stuff, it's not. Far from it," he said.

"We've sold it to some politicians in Australia, bank managers, solicitors, accountants, some really top people collect Third Reich items.

"I won't name names, but one particular doctor I know has one of the biggest collections in Australia of Third Reich items.

"He couldn't care less about Nazism. He just likes the quality of the products and the history."

Don Mahoney shows a German war medal to bidders. ( ABC News: Jarrod Lucas )

Collector's house full of Nazi memorabilia

The ABC spoke with one bidder, a man identified only as Henry, who purchased one of the Nazi flags at Saturday's auction.

He said his family has German heritage and he has been collecting Nazi memorabilia for the past decade.

"I've got glass cabinets full of it … a lot of SS stuff," he said.

Henry told the ABC he purchased a similar Nazi flag five years ago for $1,000 and has had offers to buy it for $2,500.

His favourite item on display at home is the dress uniform of a Waffen-SS officer, worn by members of the armed wing of the Nazi Party.

A German SS officer's hat. ( ABC News: Jarrod Lucas )

The SS, or Schutzstaffel, which translates to 'protection squadrons', was the unit most responsible for the Holocaust.

"It's just what I'm into. It's the history behind it," Henry said.

"It's an investment as well. You're never going to lose money on it. They only go up [in value]."



A silver ring which belonged to an SS officer sold for $340 on Saturday, while a bayonet from the SS Panzer Division fetched $1,300.

The ABC asked another man, who had a distinctive tattoo on his chest indicating membership of the Gypsy Jokers outlaw motorcycle gang, why he collected Nazi military memorabilia.

He replied "Hitler was the best. He was an animal, but he was good at what he done."

How to tell if flags are fake

Military collectables expert Don Mahoney said an Australian soldier souvenired this Nazi flag from a burning building during World War II. ( ABC News: Jarrod Lucas )

The biggest Nazi flag sold at the auction was described as an "incredible piece of wartime history", scorched by fire after it was reportedly recovered from a burning building by an Australian soldier during World War II.

The auctioneer said the flag would likely have only fetched $150 if it was a reproduction, instead of the genuine article.

"Any reproductions don't come anywhere near the quality of what they made originally so they're extremely easy to pick," Mr Mahoney said.

"In the 1940s they used cotton to do stitching. Nowadays, with reproductions, they use nylon cotton and imitation cotton, so you run a blue light over it and it glows in the dark.

"It doesn't matter how you've aged it and tried to make it look old, you can pick them easy."

Victors write the history books

Bathurst-based auctioneer David Smith conducts about a dozen similar events around Australia each year.

Auctioneer David Smith taking bids at Saturday's public auction in Kalgoorlie-Boulder. ( ABC News: Jarrod Lucas )

He said the market for Nazi relics is strong and growing as more merchandise hits the market.

"The bizarre thing is the losers — the Napoleonic, Confederates, the Nazis, the Japanese — their stuff is the most collectable, and the winners are not as collectable," he said.

Nazi propaganda magazines, knives and bayonets were popular items sold at the auction. ( ABC News: Jarrod Lucas )

"I suppose [the reason they are so popular is because] they're portrayed as villains. There's a lot of keen collectors of Nazi memorabilia.

"The Diggers used to bring souvenirs back because they were winners, and now the poor old buggers are falling off the perch and stuff is starting to come onto the market.

"It's a shame that a lot of families that inherit this stuff don't keep it, but that's just a fact of life."

Veteran not interested in Nazi memorabilia

Vietnam veteran Bob Beeson, who served six years in the Australian Army before being medically discharged, is another avid collector of military memorabilia.

But he draws the line at Nazi relics.

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The 74-year-old former army engineer attended Saturday's auction and bought a kukri, the famed knife brandished by Gurkha soldiers.

It is a well-known taboo that the weapon cannot be sheathed until it has drawn blood.

"I was in Borneo with the army and we were building roads," Mr Beeson said.

"When I was put into hospital to get my appendix out, I was in there with a Gurkha soldier and I asked if I could have a look at his kukri.

"He wasn't very keen on it but I said 'I'd love to see it', or words to that effect, so he opened it up. But first he had to draw blood on his finger before he could show me."



Mr Beeson said he was surprised by the rise in popularity of Nazi memorabilia.

"It is [surprising] and I haven't gone into that ... I've only concentrated on the Vietnam era," he said.

"If they can afford it they can go ahead and do it, but I could never do that.

"I look at it this way — why not buy our stuff? Anything that belonged to the Australians, I like it."

Military collector trying to keep Anzac tradition alive

Military memorabilia is becoming more popular and valuable as war veterans die off. ( ABC News: Jarrod Lucas )

Another bidder, Michael Hill, said his interest in collecting military memorabilia can be traced back through his family tree.

He said his stepfather served in Australia's Special Air Service (SAS) regiment in Vietnam, and he has a tattoo of the regiment's insignia on his left bicep as a tribute.

"I've got relatives who have fought in World War I and II, so it interests me," he said.

"It's part of the Anzac legend and tradition, and we're losing a lot of them now. I think a lot of people are trying to hold onto it and this way we don't lose it."



Michael Hill collects his bugle after the auction. ( ABC News: Jarrod Lucas )

On Saturday, Mr Hill bought a number of items, including an Australian artillery bugle and Hitler Youth knife for $300.

"It could be an investment, it just makes your collection a bit bigger and better," he said.

"I've just started to branch out and get bayonets and knives. My missus will probably kill me when she sees how much I've spent."