Ahead of Saturday's auction he said his staff would be "on their guard because some nutcase might come and attack us".

"In this case, we're a little concerned about our wellbeing."

Mr Vickers says he regularly sells Nazi memorabilia at auctions, and it has never previously caused a stir. While selling Nazi memorabilia is illegal in some countries including Germany and France, there is no law against it in Australia.

"If someone threatens you it makes you even more determined to stand your ground. I’m not going to back down, that's the way I am," he said.

"When you tell someone what they can’t do when they can legally do it, they’re a dictator in my books."

Mr Vickers is upset people have assumed he is a Nazi sympathiser just because he's selling historical items.

"What we’re selling is war trophies, things people have grabbed when they defeated the Germans."

While acknowledging the issue is "a very touchy subject", he rejects the suggestion he is supporting the alt-right and neo-Nazi movements by facilitating the sale of historical items.

"It's just part of history - you can't smother it up.

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"If you make it illegal to sell it, it's only going to enhance the movement."

Sydney Jewish Museum chief executive Norman Seligman said the museum "does not believe in glorification of the Nazi regime and therefore does not purchase or display Nazi war memorabilia".

"In keeping with this we do not think that auction houses should be selling or trading in Nazi War memorabilia," Mr Seligman said.

Dvir Abramovich, chairman of Jewish advocacy organisation the Anti-Defamation Commission, wants the auction items withdrawn.

"Such auctions violate the memory of the victims, hurt the survivors and dishonour the enormous sacrifices made by the diggers who fought to defeat the Third Reich," Dr Abramovich said in a statement.

"The tragedies at Pittsburgh and Christchurch, committed by white-supremacists, should provoke some very serious soul-searching by all. I call on Vickers & Hoad to pluck up the courage required and to immediately withdraw these grisly items from their shelves."

With Jenny Noyes