... will NOT make them go away, Donna. Burying our heads in the sand will NOT make them go away.

Check this out from the Collectors Universe Annual Income Statement:

For year end 7-1-2000
Income from Grading/Authentication $24,363,000
Income from sale of Collectibles $12,974,000
Income from Commissions $5,037,000
Total Revenue $42,374,000

Complete details available on their website:

http://viq.prnewswire.com/cgi-bin/ir/clct/annincome.html

Here's a quote from their website about the services they provide:

>> We have developed some of the leading brand names in our collectibles market:

>> PCGS (Professional Coin Grading Service), which is the leading coin grading and authentication service in the United States;

>> PSA (Professional Sports Authenticators), which is a leading sportscard grading and authentication service in the United States;

>> Bowers and Merena, which is a leading auctioneer of rare and collectible coins in the United States; and

>> Lyn Knight Currency Auctions, which is a leading auctioneer of rare and collectible currencies.

>> During the fiscal year ended July 1, 2000, we expanded our business into other collectibles markets. We established a new division PSE (Professional Stamp Experts) to offer rare and collectible stamp authentication and grading services, and we have established an autograph authentication division which offers authentication services to collectors of sports autographs and memorabilia. <<

These are the big gunners of slabbing. They have the money to come in and slab chips for years without making a profit, as long as it looks like they eventually will.

I have good reason to believe that they have recently decided that they will, after all, begin slabbing chips. I am attempting to obtain verifiable confirmation of that decision.

I can also tell you that I am aware of at least two deep pocket coin collectors who have been quietly buying up quality chips with the intention of having them slabbed once PSA begins doing so. And you can bet that there are more than just two doing this.

They believe that chips which are graded in accordance with the PSA 10 point grading system and which grade at 7 or better will be saleable at prices 1 1/2 to 2 TIMES the HIGH column of the Campiglia-Wells book. And forget the fact that most collectors won't pay those kinds of prices; they're looking to sell to investors and speculators who don't give a damn about our hobby. The end result, nevertheless, will be higher prices for any of the same chips which have not been slabbed, as well as other rare and still unslabbed chips (supply & demand).

These guys (Collectors Universe) CANNOT be ignored away and thinking that they can is, unfortunately, naive and self-defeating.

----- jim o\-S