|   |   |                                                                                    |
|--------|--------|-----------------------------------------------------------------------------------------|
| þ |   | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|   |   |                                                                                     |
|--------|--------|------------------------------------------------------------------------------------------|
| o      |   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|                            |   |                |
|---------------------------------|--------|---------------------|
| Nevada                          |   | 88-0097334          |
| (State or other jurisdiction of |   | (I.R.S. Employer    |
| incorporation or organization)  |   | Identification No.) |

| Large accelerated filer o | Accelerated filer o              |
|---------------------------|----------------------------------|
| Non-accelerated filer o   | Smaller reporting company þ |

|                                   |   |            |
|----------------------------------------|--------|-----------------|
| Class                                  |   | Outstanding     |
|                                   |   |            |
| Common stock, $.01 par value per share |   | 9,986,065  |

----

|       |                                                                   |                                                                                              |
|------------|------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
| PART I.    | FINANCIAL INFORMATION                                                  | Page No.                                                                                          |
|       |                                                                   |                                                                                              |
| Item 1.    | Consolidated Financial Statement:                                      |                                                                                              |
|       |                                                                   |                                                                                              |
|       | Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010 |                 1 |
|       |                                                                   |                                                                                              |
|       | Consolidated Statements of Operations for the three months ended       | 2                                                                                                 |
|       | March 31, 2011 and 2010                                                |                                                                                              |
|       |                                                                   |                                                                                              |
|       | Consolidated Statements of Cash Flows for the three months ended       | 3                                                                                                 |
|       | March 31, 2011 and 2010                                                |                                                                                              |
|       |                                                                   |                                                                                              |
|       | Notes to Consolidated Financial Statements                             | 4                                                                                                 |
|       |                                                                   |                                                                                              |
| Item 2.    | Management’s Discussion and Analysis of Financial Condition      | 7                                                                                                 |
|       | and Results of Operations.                                             |                                                                                              |
|       |                                                                   |                                                                                              |
| Item 3.    | Quantitative and Qualitative Disclosures About Market Risk.            | 12                                                                                                |
|       |                                                                   |                                                                                              |
| Item 4.    | Controls and Procedures.                                               | 13                                                                                                |
|       |                                                                   |                                                                                              |
| PART II.   | OTHER INFORMATION                                                      |                                                                                              |
|       |                                                                   |                                                                                              |
| Item 3.    | Legal Proceedings.                                                     | 14                                                                                                |
|       |                                                                   |                                                                                              |
| Item 5.    | Other Information.                                                     | 14                                                                                                |
|       |                                                                   |                                                                                              |
| Item 6.    | Exhibits.                                                              | 14                                                                                                |
|       |                                                                   |                                                                                              |
| SIGNATURES |                                                                   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | March 31,2011 | December 31, 2010 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Unaudited     |              |
|  ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |              |   |
| Current Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          |              |   |
|     Cash and cash equivalents                                                                                                                                                           |   | $             | 1,483,727         |   |   | $ | 871,468 |   |
|     Trade receivables                                                                                                                                                                   |   |          | 380,229           |   |   |   | 793,869 |   |
|     Inventories                                                                                                                                                                         |   |          | 17,833,595        |   |   |   | 17,046,716 |   |
|     Prepaid expenses                                                                                                                                                                    |   |          | 487,011           |   |   |   | 416,376 |   |
|     Prepaid federal income tax                                                                                                                                                          |   |          | 319,772           |   |   |   | 319,772 |   |
|                 Total current assets                                                                                        |   |          | 20,504,334        |   |   |   | 19,448,201 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |              |   |   |   |   |   |
| Marketable securities – available for sale                                                                                                                                                            |   |          | 7,500             |   |   |   | 7,500 |   |
| Property and equipment, net                                                                                                                                                                                 |   |          | 4,450,432         |   |   |   | 4,466,517 |   |
| Deferred income taxes                                                                                                                                                                                       |   |          | 2,688,620         |   |   |   | 2,844,511 |   |
| Goodwill                                                                                                                                                                                                    |   |          | 837,117           |   |   |   | 837,117 |   |
| Intangible assets                                                                                                                                                                                           |   |          | 2,428,172         |   |   |   | 2,435,339 |   |
| Other assets                                                                                                                                                                                                |   |          | 198,063           |   |   |   | 220,949 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $             | 31,114,238        |   |   | $ | 30,260,134 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |              |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          |              |   |   |   |   |   |
| Current Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |              |   |   |   |   |   |
|     Notes payable                                                                                                                                                                       |   | $             | 52,455            |   |   | $ | 52,455 |   |
|     Current maturities of long-term debt                                                                                                                                                |   |          | 420,170           |   |   |   | 420,170 |   |
|     Line of credit                                                                                                                                                                      |   |          | 3,499,887         |   |   |   | 3,499,887 |   |
|     Accounts payable – trade                                                                                                                                                      |   |          | 1,150,154         |   |   |   | 1,791,451 |   |
|     Accrued expenses                                                                                                                                                                    |   |          | 285,930           |   |   |   | 260,361 |   |
|     Customer deposits                                                                                                                                                                   |   |          | 3,808,427         |   |   |   | 2,428,452 |   |
|                  Total current liabilities                                                                             |   |          | 9,217,023         |   |   |   | 8,452,776 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |              |   |   |   |   |   |
| Long-term debt, less current maturities                                                                                                                                                                     |   |          | 2,947,950         |   |   |   | 3,169,647 |   |
| Convertible debt, net of debt discount                                                                                                                                                                      |   |          | 148,000           |   |   |   | 148,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          | 12,312,973        |   |   |   | 11,770,423 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |              |   |   |   |   |   |
| STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |              |   |   |   |   |   |
| Common stock, $.01 par value; 30,000,000 shares authorized;  9,986,065  shares issued and outstanding at the end of each period.                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |   99,861     |   |   |   |   99,861 |   |
| Additional paid-in capital                                                                                                                                                                                  |   |          | 19,093,588        |   |   |   | 19,084,646 |   |
| Retained deficit                                                                                                                                                                                            |   |          | (392,184          | ) |   |   | (694,796 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          | 18,801,265        |   |   |   | 18,489,711 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |              |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $             | 31,114,238        |   |   | $ | 30,260,134 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Three months ended March 31, |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2011                         |       |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Unaudited                    |       |
| Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                         |       |   |   |   |
|      Sales                                                                                                                                               |   | $                            | 24,758,244 |   |   | $ | 17,347,554 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                         |       |   |   |   |   |   |
| Costs and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                         |       |   |   |   |   |   |
|     Cost of goods sold                                                                                                                                        |   |                         | 21,457,696 |   |   |   | 14,918,715 |   |
|     Selling, general and administrative expenses                                                                                                              |   |                         | 2,649,513  |   |   |   | 2,466,647 |   |
|     Depreciation and amortization                                                                                                                             |   |                         | 101,123    |   |   |   | 66,424 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                         | 24,208,332 |   |   |   | 17,451,786 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                         |       |   |   |   |   |   |
| Operating income                                                                                                                                                                                                               |   |                         | 549,912    |   |   |   | (104,232 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                         |       |   |   |   |   |   |
| Other expense (income)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                         |       |   |   |   |   |   |
|     Other income                                                                                                                                              |   |                         | ( 2,245    | ) |   |   | (17,440 | ) |
|     Interest expense                                                                                                                                          |   |                         | 88,779     |   |   |   | 110,406 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                         |       |   |   |   |   |   |
| Earnings before income taxes                                                                                                                                                                                                   |   |                         | 463,378    |   |   |   | (197,198 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                         |       |   |   |   |   |   |
| Income tax (benefit) expense                                                                                                                                                      |   |                         | 160,766    |   |   |   | (67,047 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                         |       |   |   |   |   |   |
| Net earnings (loss)                                                                                                                                                                                                            |   |                         | 302,612    |   |   |   | (130,151 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                         |       |   |   |   |   |   |
| Earnings per common share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                         |       |   |   |   |   |   |
|          Basic                                                                                    |   | $                            | 0.03       |   |   | $ | (0.01 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                         |       |   |   |   |   |   |
|          Diluted                                                                                       |   | $                            | 0.03       |   |   | $ | (0.01 | ) |

| Weighted average number of common shares                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |       |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|    Basic                                                                               |   |   | 9,986,065  |   |   |   | 9,833,635 |   |
|    Diluted                                                                             |   |   | 10,557,436 |   |   |   | 9,833,635 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Three months ended March 31, |      |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2011                         |      |   | 2010 |   |
| Cash flows from operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Unaudited                    |      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                         |      |   |   |   |
|  Net earnings                                                                                                                                       |   |                         | 302,612   |   |   | $ | (130,151 | ) |
|  Adjustments to reconcile net earnings to net cash provided by operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                         |      |   |   |   |   |   |
|       Depreciation and amortization                                                                                        |   |                         | 101,123   |   |   |   | 66,424 |   |
|       Deferred income taxes                                                                                                |   |                         | 155,891   |   |   |   | -- |   |
|       Stock option expense                                                                                                 |   |                         | 8,942     |   |   |   | -- |   |
|  (Increase) decrease in operating assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                         |      |   |   |   |   |   |
|       Trade receivables                                                                                                    |   |                         | 413,640   |   |   |   | (50,478 | ) |
|       Inventories                                                                                                          |   |                         | (786,879  | ) |   |   | 1,138,838 |   |
|       Prepaid expenses and other current assets                                                                            |   |                         | (70,634   | ) |   |   | 15,951 |   |
|       Accounts payable and accrued expenses                                                                                |   |                         | (615,728  | ) |   |   | (934,785 | ) |
|       Customer deposits                                                                                                    |   |                         | 1,379,975 |   |   |   | (433,162 | ) |
|       Federal income taxes payable                                                                                         |   |                         | --        |   |   |   | (67,047 | ) |
|       Other assets                                                                                                         |   |                         | --        |   |   |   | 43,999 |   |
| Net cash provided by (used in) operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                         | 888,942   |   |   |   | (350,411 | ) |
| Cash flows from investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                         |      |   |   |   |   |   |
|       Purchase of property and equipment                                                                                   |   |                         | (54,986   | ) |   |   | (87,762 | ) |
| Net cash used in investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                         | (54,986   | ) |   |   | (87,762 | ) |
| Cash flows from financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                         |      |   |   |   |   |   |
| Repayments of notes payable                                                                                                                                             |   |                         | (221,697  | ) |   |   | (65,563 | ) |
| Net cash used in financing activities                                                                                                                                   |   |                         | (221,697  | ) |   |   | (65,563 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                         |      |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                         | 612,259   |   |   |   | (503,736 | ) |
| Cash and cash equivalents at beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                         | 871,468   |   |   |   | 1,446,724 |   |
| Cash and cash equivalents at end of period                                                                                                               |   | $                            | 1,483,727 |   |   | $ | 942,988 |   |

----

|                          |   | March 31, 2011 |       |   | December 31, 2010 |   |
|-------------------------------|--------|----------------|------------|--------|-------------------|--------|
| Jewelry                       |   | $              | 12,272,803 |   |              | $      | 12,568,505 |   |
| Rare coins                    |   |           | 2,638,796  |   |              |   | 2,222,558 |   |
| Bullion                       |   |           | 2,107,189  |   |              |   | 1,518,801 |   |
| Scrap gold                    |   |           | 814,807    |   |              |   | 736,852 |   |
|     Total |   | $              | 17,833,595 |   |              | $      | 17,046,716 |   |

|                              |   | 2011                         |     |   | 2010                         |   |
|-----------------------------------|--------|------------------------------|----------|--------|------------------------------|--------|
|                              |   | Three months ended March 31, |     |   | Three months ended March 31, |   |
|                              |   | Net Earnings                 |     |   | Shares                       |   |   | Per share |   |   | Net Earnings |   |   | Shares |   |   | Per share |   |
|                              |   |                         |     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per common share   |   | $                            | 302,602  |   |                         |   | 9,986,065 |   |   | $ | 0.03 |   |   | $ | (130,151 | ) |   |   | 9,833,635 |   |   | $ | ( 0.01 | ) |
| Effect of dilutive stock options  |   |                         |  -- |   |                         |   | 571,371 |   |   |   |  -- |   |   |   |  -- |   |   |   | -- |   |   |   |  -- |   |
|                              |   |                         |     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per common share |   | $                            | 302,602  |   |                         |   | 10,557,436 |   |   | $ | 0.03 |   |   | $ | (130,151 | ) |   |   | 9,833,635 |   |   | $ | ( 0.01 | ) |
|                              |   |                         |     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |   |                         |     |   |                         |   |

|                 |   | 2011   |      |   | 2010   |   |
|----------------------|--------|--------|-----------|--------|--------|--------|
|                 |   |   |      |   |   |   |
|                 |   |   |      |   |   |   |
| Common stock options |   |   | 1,498,134 |   |   |   | 1,423,134 |   |
|                 |   |   |      |   |   |   |   |   |

----

| (In thousands)                     |   | Retail Jewelry |   |   | WholesaleJewelry |   |   | Precious Metals |   |   | Rare Coins |   |   | Discontinued Operations |   |   | Corporate and Other |   |   | Consolidated |   |
|------------------------------------|--------|----------------|--------|--------|------------------|--------|--------|-----------------|--------|--------|------------|--------|--------|-------------------------|--------|--------|---------------------|--------|--------|--------------|--------|
| Revenues                           |   |           |   |   |             |   |   |            |   |   |       |   |   |                    |   |   |                |   |   |         |   |
|      2011 |   | $              | 7,271  |   |             | $      | 628    |            |   | $      | 14,034     |   |   | $                       | 2,825  |   |                | $      | --     |         |   | $ | -- |   |   | $ | 24,758 |   |
|      2010 |   |           | 5,588  |   |             |   | 676    |            |   |   | 8,461      |   |   |                    | 2,622  |   |                |   | --     |         |   |   | -- |   |   |   | 17,347 |   |
|                               |   |           |   |   |             |   |   |            |   |   |       |   |   |                    |   |   |                |   |   |         |   |   |   |   |   |   |   |   |
| Net earnings (loss)                |   |           |   |   |             |   |   |            |   |   |       |   |   |                    |   |   |                |   |   |         |   |   |   |   |   |   |   |   |
|      2011 |   |           | 148    |   |             |   | (6     | )               |   |   | 165        |   |   |                    | 78     |   |                |   | --     |         |   |   | (82 | ) |   |   | 303 |   |
|      2010 |   |           | (336   | )      |             |   | 1      |            |   |   | 152        |   |   |                    | 72     |   |                |   | --     |         |   |   | (19 | ) |   |   | (130 | ) |
|                               |   |           |   |   |             |   |   |            |   |   |       |   |   |                    |   |   |                |   |   |         |   |   |   |   |   |   |   |   |
| Identifiable assets                |   |           |   |   |             |   |   |            |   |   |       |   |   |                    |   |   |                |   |   |         |   |   |   |   |   |   |   |   |
|      2011 |   |           | 22,158 |   |             |   | 1,692  |            |   |   | 2,107      |   |   |                    | 2,639  |   |                |   | --     |         |   |   | 2,518 |   |   |   | 31,114 |   |
|      2010 |   |           | 23,243 |   |             |   | 1,725  |            |   |   | 2,962      |   |   |                    | 1,084  |   |                |   | 295    |         |   |   | 783 |   |   |   | 30,092 |   |
|                               |   |           |   |   |             |   |   |            |   |   |       |   |   |                    |   |   |                |   |   |         |   |   |   |   |   |   |   |   |
| Goodwill                           |   |           |   |   |             |   |   |            |   |   |       |   |   |                    |   |   |                |   |   |         |   |   |   |   |   |   |   |   |
|      2011 |   |           | --     |   |             |   | 837    |            |   |   | --         |   |   |                    | --     |   |                |   | --     |         |   |   | -- |   |   |   | 837 |   |
|      2010 |   |           | --     |   |             |   | 837    |            |   |   | --         |   |   |                    | --     |   |                |   | --     |         |   |   | -- |   |   |   | 837 |   |
|                               |   |           |   |   |             |   |   |            |   |   |       |   |   |                    |   |   |                |   |   |         |   |   |   |   |   |   |   |   |
| Capital Expenditures               |   |           |   |   |             |   |   |            |   |   |       |   |   |                    |   |   |                |   |   |         |   |   |   |   |   |   |   |   |
|      2011 |   |           | 55     |   |             |   | --     |            |   |   | --         |   |   |                    | --     |   |                |   | --     |         |   |   | -- |   |   |   | 55 |   |
|      2010 |   |           | 88     |   |             |   | --     |            |   |   | --         |   |   |                    | --     |   |                |   | --     |         |   |   | -- |   |   |   | 88 |   |
|                               |   |           |   |   |             |   |   |            |   |   |       |   |   |                    |   |   |                |   |   |         |   |   |   |   |   |   |   |   |
| Depreciation and amortization      |   |           |   |   |             |   |   |            |   |   |       |   |   |                    |   |   |                |   |   |         |   |   |   |   |   |   |   |   |
|      2011 |   |           | 44     |   |             |   | 2      |            |   |   | 13         |   |   |                    | 13     |   |                |   | --     |         |   |   | 29 |   |   |   | 101 |   |
|      2010 |   |           | 39     |   |             |   | 1      |            |   |   | 13         |   |   |                    | 13     |   |                |   | --     |         |   |   | -- |   |   |   | 66 |   |
| Interest expense                   |   |           |   |   |             |   |   |            |   |   |       |   |   |                    |   |   |                |   |   |         |   |   |   |   |   |   |   |   |
|      2011 |   |           | 85     |   |             |   | 4      |            |   |   | --         |   |   |                    | --     |   |                |   | --     |         |   |   | -- |   |   |   | 89 |   |
|      2010 |   |           | 107    |   |             |   | 3      |            |   |   | --         |   |   |                    | --     |   |                |   | --     |         |   |   | -- |   |   |   | 110 |   |
|                               |   |           |   |   |             |   |   |            |   |   |       |   |   |                    |   |   |                |   |   |         |   |   |   |   |   |   |   |   |
| Income tax expense                 |   |           |   |   |             |   |   |            |   |   |       |   |   |                    |   |   |                |   |   |         |   |   |   |   |   |   |   |   |
|      2011 |   |           | 111    |   |             |   | --     |            |   |   | 53         |   |   |                    | 25     |   |                |   | --     |         |   |   | (27 | ) |   |   | 161 |   |
|      2010 |   |           | (173   | )      |             |   | 1      |            |   |   | 78         |   |   |                    | 37     |   |                |   | --     |         |   |   | (10 | ) |   |   | (67 | ) |

----

----

----

----

----

----

----

| As of March 31, 2011        |   | Requirement               |       |   | Actual calculation |   |
|-------------------------------------------------|--------|---------------------------|------------|--------|-------------------------|--------|
| Minimum tangible net worth                      |   |                      | 17,750,000 |   |                    |   | 15,535,976 |   |
| Maximum total liabilities to tangible net worth |   | Not to exceed .75    |       |   |                    | .66    |   |
| Minimum debt service coverage                   |   | Must be greater than 1.40 |       |   |                    | 2.18   |   |

| Payments due by period                         |   |
|------------------------------------------------|--------|
| Contractual Cash Obligations    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  Thereafter |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Notes payable                                  |   | $ | 3,552,342 |   |   | $ | 3,552,342 |   |   | $ | -- |   |   | $ | -- |   |   | $ | -- |   |
| Long-term debt and capital leases              |   |   | 3,508,314 |   |   |   | 338,667 |   |   |   | 1,038,321 |   |   |   | 536,858 |   |   |   | 1,594,468 |   |
| Operating Leases                               |   |   |  1,433,815 |   |   |   |  465,272 |   |   |   |  845,741 |   |   |   | 122,802 |   |   |   |  -- |   |
| Total                                          |   | $ | 8,494,471 |   |   | $ | 4,356,281 |   |   | $ | 1,884,062 |   |   | $ | 659,660 |   |   | $ | 1,594,468 |   |

----

----

| Exhibit |   |                                                                                                   |   | Filed  |   | Incorporated |   |   |   | Date Filed           |   | Exhibit |   |
|---------|--------|--------------------------------------------------------------------------------------------------------|--------|--------|--------|--------------|--------|--------|--------|----------------------|--------|---------|--------|
| No.     |   | Description                                                                                            |   | Herein |   | by Reference |   | Form   |   | with SEC             |   | No.     |   |
|    |   |                                                                                                   |   |   |   |         |   |   |   |                 |   |    |   |   |
| 2.1     |   | Amended and Restated Agreement and Plan of Merger and Reorganization, dated as of January 6, 2007 |   |   |   | ×       |   | 8-K    |   | January 9, 2007 |   |    | 2.1    |   |
|    |   |                                                                                                   |   |   |   |         |   |   |   |                 |   |    |   |   |
| 2.2     |   | Limited Joinder Agreement, dated as of January 6, 2007                                            |   |   |   | ×       |   | 8-K    |   | January 9, 2007 |   |    | 2.9    |   |
|    |   |                                                                                                   |   |   |   |         |   |   |   |                 |   |    |   |   |
| 3.1     |   | Articles of Incorporation dated September 17, 1965                                                |   |   |   | ×       |   | 8-A12G |   | June 23, 1999   |   |    | 3.1    |   |
|    |   |                                                                                                   |   |   |   |         |   |   |   |                 |   |    |   |   |
| 3.2     |   | Certificate of Amendment to Articles of Incorporation, dated October 14, 1981                     |   |   |   | ×       |   | 8-A12G |   | June 23, 1999   |   |    | 3.2    |   |
|    |   |                                                                                                   |   |   |   |         |   |   |   |                 |   |    |   |   |
| 3.3     |   | Certificate of Resolution, dated October 14, 1981                                                 |   |   |   | ×       |   | 8-A12G |   | June 23, 1999   |   |    | 3.3    |   |
|    |   |                                                                                                   |   |   |   |         |   |   |   |                 |   |    |   |   |
| 3.4     |   | Certificate of Amendment to Articles of Incorporation , dated July 15, 1986                       |   |   |   | ×       |   | 8-A12G |   | June 23, 1999   |   |    | 3.4    |   |
|    |   |                                                                                                   |   |   |   |         |   |   |   |                 |   |    |   |   |
| 3.5     |   | Certificate of Amendment to Articles of Incorporation, dated August 23, 1998                      |   |   |   | ×       |   | 8-A12G |   | June 23, 1999   |   |    | 3.5    |   |
|    |   |                                                                                                   |   |   |   |         |   |   |   |                 |   |    |   |   |
| 3.6     |   | Certificate of Amendment to Articles of Incorporation, dated June 26, 1992                        |   |   |   | ×       |   | 8-A12G |   | June 23, 1999   |   |    | 3.6    |   |

----

|   |   |                                                                                                                                       |   |   |   |   |   |   |   |                 |   |   |   |   |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|----------------------|--------|--------|--------|--------|
| 3.7    |   | Certificate of Amendment to Articles of Incorporation, dated June 26, 2001                                                            |   |   |   | × |   | 8-K    |   | July 3, 2001    |   |   | 1.0    |   |
|   |   |                                                                                                                                       |   |   |   |   |   |   |   |                 |   |   |   |   |
| 3.8    |   | Certificate of Amendment to Articles of Incorporation, dated May 22, 2007                                                                  |   |   |   | x      |   | 8-K    |   | May 31, 2007         |   |   | 3.1    |   |
|   |   |                                                                                                                                       |   |   |   |   |   |   |   |                 |   |   |   |   |
| 3.9    |   | By-laws, dated March 2, 1992                                                                                                          |   |   |   | × |   | 8-A12G |   | June 23, 1999   |   |   | 3.7    |   |
|   |   |                                                                                                                                       |   |   |   |   |   |   |   |                 |   |   |   |   |
| 4.1    |   | Specimen Common Stock Certificate                                                                                                          |   |   |   | × |   | S-4    |   | January 6, 2007 |   |   | 4.1    |   |
|   |   |                                                                                                                                       |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.1   |   | Renewal, Extension And Modification Agreement dated January 28, 1994, by and among DGSE Corporation and Michael E. Hall And Marian E. Hall |   |   |   | × |   | 10-KSB |   | March 1995           |   |   | 10.2   |   |
|   |   |                                                                                                                                       |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.2   |   | Lease Agreement dated June 2, 2000 by and between SND Properties and Charleston Gold and Diamond Exchange, Inc.                       |   |   |   | × |   | 10-KSB |   | March 29, 2001  |   |   | 10.1   |   |
|   |   |                                                                                                                                       |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.3   |   | Lease agreement dated October 5, 2004 by and between Beltline Denton Road Associates and Dallas Gold & Silver Exchange                 |   |   |   | × |   | 10-K   |   | April 15, 2005  |   |   | 10.2   |   |
|   |   |                                                                                                                                       |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.4   |   | Lease agreement dated December 1, 2004 by and between Stone Lewis Properties and Dallas Gold & Silver Exchange                         |   |   |   | × |   | 10-K   |   | April 15, 2005  |   |   | 10.3   |   |
|   |   |                                                                                                                                       |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.5   |   | Lease agreement dated November 18, 2004 by and between Hinkle Income Properties LLC and American Pay Day Centers, Inc.                     |   |   |   | × |   | 10-K   |   | April 15, 2005  |   |   | 10.4   |   |
|   |   |                                                                                                                                       |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.6   |   | Lease Agreement dated January 17, 2005 by and between Belle-Hall Development Phase III Limited Partnership and DGSE Companies, Inc.        |   |   |   | × |   | S-4    |   | January 6, 2007 |   |   | 10.6   |   |
|   |   |                                                                                                                                       |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.7   |   | Sale agreement dated executed July 5, 2007 by and between DGSE Companies, Inc. and Texas Department of Transportation                 |   |   |   | × |   | 8-K    |   | July 11, 2007        |   |   | 10.1   |   |
|   |   |                                                                                                                                       |   |   |   |   |   |   |   |                 |   |   |   |   |

----

| 10.8   |   | Purchase agreement dated July 5, 2007 by and between DGSE Companies, Inc. and 11311 Reeder Road Holdings, LP              |   |   |   | × |   | 8-K    |   | July 11, 2007        |   |   | 10.2   |   |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|----------------------|--------|--------|--------|--------|
|   |   |                                                                                                                           |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.9   |   | Loan Agreement, dated as of December 22, 2005, between DGSE Companies, Inc. and Texas Capital Bank, N.A.                  |   |   |   | × |   | 8-K/A  |   | August 17, 2006 |   |   | 10.1   |   |
|   |   |                                                                                                                           |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.10  |   | Third Amendment to Loan Agreement, dated as of May 10, 2007, by and between DGSE Companies, Inc. and Texas Capital Bank, N.A.  |   |   |   | × |   | 8-K    |   | May 9, 2007          |   |   | 3.0    |   |
|   |   |                                                                                                                           |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.11  |   | Support Agreement, DGSE stockholders, dated as of January 6, 2007                                                         |   |   |   | × |   | 8-K    |   | January 9, 2007 |   |   | 99.1   |   |
|   |   |                                                                                                                           |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.12  |   | Securities Exchange Agreement, dated as of January 6, 2007                                                                |   |   |   | × |   | 8-K    |   | January 9, 2007 |   |   | 99.2   |   |
|   |   |                                                                                                                           |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.13  |   | Warrant to DiGenova, issued January 6, 2007                                                                               |   |   |   | × |   | 8-K    |   | January 9, 2007 |   |   | 99.3   |   |
|   |   |                                                                                                                           |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.14  |   | Support Agreement, Superior stockholders, dated as of January 6, 2007                                                     |   |   |   | × |   | 8-K    |   | January 9, 2007 |   |   | 99.5   |   |
|   |   |                                                                                                                           |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.15  |   | Asset purchase agreement, dated May 9, 2007, by  and between DGSE Companies, Inc. and Euless Gold & Silver, Inc. |   |   |   | × |   | 8-K    |   | May 9, 2007          |   |   | 1.0    |   |
|   |   |                                                                                                                           |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.16  |   | Subordinated Promissory Note dated May 9, 2007                                                                                 |   |   |   | × |   | 8-K    |   | May 9, 2007          |   |   | 2.0    |   |
|   |   |                                                                                                                           |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.17  |   | Registration Rights Agreement with Stanford International Bank Ltd., dated as of May 30, 2007                                  |   |   |   | × |   | 8-K    |   | May 31, 2007    |   |   | 99.1   |   |
|   |   |                                                                                                                           |   |   |   |   |   |   |   |                 |   |   |   |   |
| 10.18  |   | Corporate Governance Agreement with Dr. L.S. Smith and Stanford International Bank Ltd., dated as of May 30, 2007              |   |   |   | × |   | 8-K    |   | May 31, 2007    |   |   | 99.2   |   |
|   |   |                                                                                                                           |   |   |   |   |   |   |   |                 |   |   |   |   |

----

| 10.19  |   | Escrow Agreement with American Stock Transfer & Trust Company and Stanford International Bank Ltd., as stockholder agent, dated as of May 30, 2007                 |   |   |   | × |   | 8-K    |   | May 31, 2007  |   |   | 99.3   |   |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------------------|--------|--------|--------|--------|
|   |   |                                                                                                                                                                   |   |   |   |   |   |   |   |               |   |   |   |   |
| 10.20  |   | Form of Warrants                                                                                                                                                       |   |   |   | × |   | 8-K    |   | May 31, 2007  |   |   | 99.4   |   |
|   |   |                                                                                                                                                                   |   |   |   |   |   |   |   |               |   |   |   |   |
| 10.21  |   | Amended and Restated Commercial Loan and Security Agreement, by and between Superior Galleries Inc. and Stanford International Bank Ltd., dated as of May 30, 2007     |   |   |   | × |   | 8-K    |   | May 31, 2007  |   |   | 99.5   |   |
|   |   |                                                                                                                                                                   |   |   |   |   |   |   |   |               |   |   |   |   |
| 10.22  |   | Employment Agreement with L.S. Smith, dated as of May 30, 2007                                                                                                         |   |   |   | × |   | 8-K    |   | May 31, 2007  |   |   | 99.6   |   |
|   |   |                                                                                                                                                                   |   |   |   |   |   |   |   |               |   |   |   |   |
| 10.23  |   | Employment Agreement with William H. Oyster, dated as of May 30, 2007                                                                                                  |   |   |   | × |   | 8-K    |   | May 31, 2007  |   |   | 99.7   |   |
|   |   |                                                                                                                                                                   |   |   |   |   |   |   |   |               |   |   |   |   |
| 10.24  |   | Employment Agreement with John Benson, dated as of May 30, 2007                                                                                                        |   |   |   | × |   | 8-K    |   | May 31, 2007  |   |   | 99.8   |   |
|   |   |                                                                                                                                                                   |   |   |   |   |   |   |   |               |   |   |   |   |
| 10.25  |   | Eighth Amendment to Loan Agreement, dated as of June 3, 2010, by and between DGSE Companies, Inc. and Texas Capital Bank, N.A.                                    |   |   |   | × |   | 8-K    |   | June 3, 2010  |   |   | 99.2   |   |
|   |   |                                                                                                                                                                   |   |   |   |   |   |   |   |               |   |   |   |   |
| 31.1   |   | Certification pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 implementing Section 302 of the Sarbanes-Oxley Act of 2002 by Dr. L.S. Smith |   | × |   |   |   |   |   |               |   |   |   |   |
|   |   |                                                                                                                                                                   |   |   |   |   |   |   |   |               |   |   |   |   |
| 31.2   |   | Certification pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 implementing Section 302 of the Sarbanes-Oxley Act of 2002 by John Benson    |   | × |   |   |   |   |   |               |   |   |   |   |
|   |   |                                                                                                                                                                   |   |   |   |   |   |   |   |               |   |   |   |   |
| 32.1   |   | Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Dr. L.S. Smith                      |   | × |   |   |   |   |   |               |   |   |   |   |
|   |   |                                                                                                                                                                   |   |   |   |   |   |   |   |               |   |   |   |   |
| 32.2   |   | Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by John Benson                         |   | × |   |   |   |   |   |               |   |   |   |   |

----

|      |                                                       |   |   |               |   |
|-----------|------------------------------------------------------------|--------|--------|--------------------|--------|
| By:  | /s/ L. S. Smith                                            |   |   | Dated: May 6, 2011 |   |
|      | L. S. Smith                                                |   |   |               |   |
|      | Chairman of the Board,Chief Executive Officer andSecretary |   |   |               |   |

|      |                                                       |   |   |               |   |
|-----------|------------------------------------------------------------|--------|--------|--------------------|--------|
| By:  | /s/ L. S. Smith                                            |   |   | Dated: May 6, 2011 |   |
|      | L. S. Smith                                                |   |   |               |   |
|      | Chairman of the Board,Chief Executive Officer andSecretary |   |   |               |   |

|      |                                            |   |   |               |   |
|-----------|-------------------------------------------------|--------|--------|--------------------|--------|
| By:  | /s/ W. H. Oyster                                |   |   | Dated: May 6, 2011 |   |
|      | W. H. Oyster                                    |   |   |               |   |
|      | Director, President and Chief Operating Officer |   |   |               |   |

|      |                                                  |   |   |               |   |
|-----------|-------------------------------------------------------|--------|--------|--------------------|--------|
| By:  | /s/ John Benson                                       |   |   | Dated: May 6, 2011 |   |
|      | John Benson                                           |   |   |               |   |
|      | Chief Financial Officer(Principal Accounting Officer) |   |   |               |   |

----