The cuddly teddy bear is no longer just a plaything but has become a highly prized collectible.

In 1994, a Japanese museum paid £110,000 for a 1904 bear called Teddy Girl. That's still the record price.

Celebrating their centenary

In fact, teddies have just marked their 100th birthday.

That classes them as antiques - and makes them worth even more.

The first examples were made by the German Steiff company in 1902.

They are reputed to have acquired their name when US President Teddy Roosevelt refused to shoot a bear cub while out hunting.

Teddy bears are still one of the most popular gifts for children, especially at Christmas.

But it's the older bears that get collectors drooling.

Condition

There are reckoned to be 10,000 teddy collections around the world.

The UK is a big seller with the US, Japan and Switzerland among the major purchasers.

So what makes a teddy a target for collectors?

It has to be:

• rare
• in excellent condition
• preferably a Steiff.

It also needs good provenance. This means its original owner can be verified - perhaps there's a picture of them with the bear.

Ian Pout, who runs Teddy Bears of Witney, knows all about the importance of provenance.

Alonzo has a royal pedigree

He paid £12,000 in 1989 for Alfonzo, who used to belong to a Russian princess, Xenia. It is now worth more than £100,000.

The bear was given to Xenia by her father. She was in London when he was killed in the revolution.

As the sole reminder of her father, the bear took on great importance to her for the rest of her life.

Ian has more than 1,000 bears at his Oxfordshire shop, ranging from traditional to contemporary designs.

Label

What tips does he have for would-be investors?

"Teddy bears appeal to all sorts of people - some like old bears, some like new bears," he says.

Ian Pout: "Buy one you love"

"If you're buying an old bear, first of all buy one you love.

"Like any collectible you should probably look out for one, if you can, that has some ID - a label, or in the case of a Steiff bear, a button in the ear.

"A label or ID of some kind usually increases the value by 50%, sometimes more, sometimes by 100%."

But it's not a quick route to easy money. There's lot of competition out there.

Emotional

"It's becoming increasingly hard to find nice old bears," admits Ian.

And unlike shares or bonds, it can be difficult to sell something which might have great emotional value too.

"I do find it difficult to think of them in cash terms because I do really think everyone who buys a teddy bear should buy with their heart," says Ian.

"If the bear goes up in value, great."

Yours for £275 - the bear's extra

Labels can add to the value Bears large and small

Aloysius featured in Brideshead Revisited

It's that winsome look that does it....

Look after him - he could be worth a fortune