FLAGSTAFF Hill manager Peter Abbott hasn't given up hope of adding Tom Pearce's bravery award to the museum's collection - despite losing a bid to buy the medal at auction.

The Board of Trade for Gallantry in Saving Life silver medal was awarded to 18-year-old Mr Pearce for rescuing Eva Carmichael after the Loch Ard wrecked off Muttonbird Island on June 1, 1878.

Of 18 passengers and 36 crew, they were the only two survivors of the shipwreck.

Mr Abbott had hoped to purchase the medal for Flagstaff Hill's extensive historic shipwreck collection but was outbid by a private collector who picked up the medal for $22,500.

It had been valued at $15,000.

``We were disappointed, of course, but certainly haven't given up hope it will be displayed at Flagstaff Hill,'' Mr Abbott said.

``We are actively trying to make contact with the successful bidder and would like to think that if the medal was displayed publicly it would be here.''

The identity of the bravery medal's new owner has not been revealed.

Mr Abbott said the museum managed to raise more than $20,000 from the Warrnambool City Council, sponsors and private investors to bid on the medal.

The bravery award was part of a $1.6 million Australian collection owned by Dr John Chapman and sold on Tuesday as part of a three-day coin, note and medal auction by Noble Numismatics in Melbourne.

Dr Chapman, a retired dentist, had the medal in his collection for more than 40 years.

Also auctioned from Dr Chapman's collection was a bronze medal made to commemorate the centenary of the Loch Ard wreck.

The medal, valued at $200, was bought by a private collector for $340.

Jill Pearson from Noble Numismatics said both medals attracted a large crowd of interested buyers.