SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-QSB

(Mark One)

(X)      Quarterly  Report  pursuant  to Section  13 or 15(d) of the  Securities
         Exchange Act of 1934

For the quarterly period ended       March 31, 2003
                               ------------------------------

( )      Transition Report under Section 13 or 15(d) of the Securities  Exchange
         Act of 1934

For the transition period from                 to
                               ---------------    ----------------

Commission File Number                 1-11048
                       -----------------------

                              DGSE Companies, Inc.
                              ---------------------
                         (Name of small business issuer)


           Nevada                                          88-0097334
----------------------------                     -------------------------------
(State or other jurisdiction                     (I.R.S. Employer Identification
 of incorporation or organization)                   Number)



     2817 Forest Lane, Dallas, Texas                          75234
----------------------------------------                    ----------
(Address of principal executive offices)                    (Zip Code)

(Issuer's telephone number, including area code) (972) 484-3662
                                                 --------------


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes X  No
                                      ---   ---

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

           Class                                   Outstanding at May 5, 2003
----------------------------                     ------------------------------
Common Stock, $.01 per value                               4,913,290




<PAGE>
<TABLE>
<CAPTION>

PART I. FINANCIAL INFORMATION
        Item 1. Financial Statements

DGSE Companies, Inc. and Subsidiaries


CONSOLIDATED BALANCE SHEETS
                                                                (Unaudited)

ASSETS                                                        March 31,     December 31,
                                                                2003            2002
                                                            ------------    ------------
<S>                                                         <C>             <C>
CURRENT ASSETS
    Cash and cash equivalents                               $    126,272    $    498,408
    Trade receivables                                            617,766         792,590
    Inventories                                                6,572,653       6,335,742
    Prepaid expenses                                             156,342         152,854
                                                            ------------    ------------


             Total current assets                              7,473,033       7,779,594

MARKETABLE SECURITIES - AVAILABLE FOR SALE                       260,687         176,908

PROPERTY AND EQUIPMENT - AT COST, NET                          1,117,600       1,157,225

DEFERRED TAX ASSET                                               105,884         120,433

GOODWILL                                                       1,151,120       1,151,120

OTHER ASSETS                                                     169,653         160,109
                                                            ------------    ------------

                                                            $ 10,277,977    $ 10,545,389
                                                            ============    ============



LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
    Notes payable                                           $  3,083,736    $    689,641
    Current maturities of long-term debt                         280,814         174,245
    Accounts payable - trade                                     303,633         591,479
    Accrued expenses                                             344,013         677,104
    Customer deposits                                            176,278         106,314
    Federal income taxes payable                                 335,453         485,453
                                                            ------------    ------------


             Total current liabilities                         4,523,927       2,724,236

Long-term debt, less current maturities                          971,453       3,066,797
Deferred income taxes                                              2,827           2,827
                                                            ------------    ------------

             Total liabilities                                 5,498,207       5,793,860

SHAREHOLDERS' EQUITY

    Common stock, $.01 par value; authorized 10,000,000
       shares; issued and outstanding 4,913,790 shares at
       March 31, 2003 and December 31, 2002                       49,133          49,133
    Additional paid-in capital                                 5,708,760       5,708,760
    Accumulated other comprehensive loss                      (1,085,266)     (1,134,950)
       Accumulated earnings                                      107,143         128,586
                                                            ------------    ------------

             Total shareholders' equity                        4,779,770       4,751,529
                                                            ------------    ------------

                                                            $ 10,277,977    $ 10,545,389
                                                            ============    ============
</TABLE>

                                       2
<PAGE>
<TABLE>
<CAPTION>

DGSE Companies, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended
(Unaudited)


                                                   March 31, 2003    March 31, 2002
                                                   --------------    --------------
<S>                                                <C>               <C>
Revenue
    Sales                                          $    5,217,920    $    4,502,108
    Pawn services charges                                  41,882            33,748
                                                   --------------    --------------
                                                        5,259,802         4,535,856

Costs and expenses
    Cost of goods sold                                  4,190,058         3,436,074
    Consulting service costs                               15,723            16,073
    Selling, general and administrative expenses          976,462         1,044,573
    Depreciation and amortization                          42,018            52,628
                                                   --------------    --------------

                                                        5,224,261         4,549,348

Other income (expense)
   Interest expense                                       (68,030)          (95,696)
                                                   --------------    --------------

                 Total other income (expense)             (68,030)          (95,696)

              Loss before income taxes                    (32,489)         (109,188)

Income tax benefit                                        (11,046)          (37,124)
                                                   --------------    --------------

              Net loss                             $      (21,443)   $      (72,064)
                                                   ==============    ==============



Earnings per common share
     Basic and diluted                                       --         ($      .01)

     Weighted average number of common shares
     Basic and diluted                                  4,913,790         4,913,790
               </TABLE>






                                       3
<PAGE>
<TABLE>
<CAPTION>

DGSE COMPANIES, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)


                                                                         Three Months Ended
                                                                              March 31,
                                                                         2003           2002
                                                                      -----------    -----------
<S>                                                                   <C>            <C>
Cash Flows From Operations
Reconciliation of net loss to net cash
    used in  operating activities
        Net loss                                                      $   (21,443)   $   (72,064)
        Common stock issued for services                                     --            1,074
        Depreciation and amortization                                      42,018         52,628
         Deferred taxes                                                   (11,046)          --
            (Increase) decrease in operating assets and liabilities
            Trade receivables                                             174,824         69,599
            Inventories                                                  (236,911)           118
            Prepaid expenses and other current assets                      (3,488)        (4,136)
            Accounts payable and accrued expenses                        (620,937)      (684,619)
            Customer deposits                                              69,964         20,362
            Federal income taxes payable                                 (150,000)       (37,124)
            Other assets                                                  (18,044)           589
                                                                      -----------    -----------
               Total net cash used in operating activities               (775,063)      (653,573)

Cash flows from investing activities
            Purchase of marketable securities                                --             --
            Purchase of property and equipment                             (2,393)        (2,557)
                                                                      -----------    -----------
            Net cash used in investing activities                          (2,393)        (2,557)

Cash flows from financing activities
            Proceeds from notes issued                                    625,000        310,555
            Payments on notes payable                                    (219,680)      (613,231)
                                                                      -----------    -----------
               Net cash used in financing activities                      405,320       (302,676)
                                                                      -----------    -----------


Net decrease in cash and cash equivalents                                (372,136)      (958,806)

Cash and cash equivalents at beginning of year                            498,408      1,063,060
                                                                      -----------    -----------

Cash and cash equivalents at end of period                            $   126,272    $   104,254
                                                                      ===========    ===========
</TABLE>



Supplemental schedule of non-cash, investing and financing activities:

Interest  paid for the three  months  ended March 31, 2003 and 2002 was $ 68,030
and $ 95,696, respectively.

Income  taxes in the amount of $ 150,000 were paid during the three months ended
March 31, 2003.


                                       4
<PAGE>
<TABLE>
<CAPTION>

(1)  - Basis of Presentation:


The accompanying  unaudited condensed  consolidated financial statements of DGSE
Companies,  Inc.  and  Subsidiaries  include the  financial  statements  of DGSE
Companies,  Inc.  and  its  wholly-owned  subsidiaries,  DGSE  Corporation,  DLS
Financial   Services,   Inc.,   National  Jewelry  Exchange,   Inc.,   Silverman
Consultants,  Inc.,  Charleston Gold And Diamond  Exchange,  Inc. and eye media,
inc.  In the  opinion  of  management,  all  adjustments  (consisting  of normal
recurring  accruals)  considered  necessary  for a fair  presentation  have been
included.

The Company's operating results for the three month and three months ended March
31, 2003, are not necessarily indicative of the results that may be expected for
the  year  ended  December  31,  2003.  For  further  information,  refer to the
consolidated   financial  statements  and  footnotes  thereto  included  in  the
Company's annual report on Form 10-KSB for the year ended December 31, 2002.

(2)  - Earnings per share

No  reconciliation  is  provided  for the  periods  ended March 31 2003 and 2002
because the effect is not dilutive.


(3)  - Business segment information

The Company's  operations  by business  segment for the three months ended March
31, were as follows:

                                                                      Corporate     Consulting &
                                       Jewelry      Liquidations       & Other      Consolidated
                                     ------------   ------------    ------------    ------------
<S>                                  <C>            <C>             <C>             <C>
Revenues
  2003                               $  5,141,927   $    117,875            --      $  5,259,802
  2002                               $  4,424,045   $    111,811            --      $  4,535,856

Income (loss) before income taxes
  2003                               $     23,841   $    (32,328)   $    (24,002)   $     32,489
  2002                               $     99,700   $   (204,979)   $     (3,909)   $   (109,188)

Identifiable assets
  2003                               $  9,499,275   $    775,700    $      3,002    $ 10,277,977
  2002                               $  7,851,134   $  2,349,390    $       --      $ 10,200,524

Capital expenditures
  2003                               $      2,393   $       --      $       --      $      2,393
  2002                               $      2,557   $       --      $       --      $      2,557
Depreciation and
  amortization
  2003                               $     40,143   $      1,875    $       --      $     42,018
  2002                               $     34,763   $     17,865    $       --      $     52,628
</TABLE>












                                       5
<PAGE>
<TABLE>
<CAPTION>

(4) Other Comprehensive income:

Other comprehensive income is as follows:


                                                                 Tax
                                               Before Tax     (Expense)      Net-of-Tax
                                                 Amount        Benefit         Amount
                                              -----------------------------------------
<S>                                           <C>            <C>            <C>
Other comprehensive income loss at
   December 31, 2002                          $(1,728,130)   $   593,180    $(1,134,950)

Unrealized holding gains arising during the
    Three months ended March 31, 2003              75,278        (25,594)        49,684
                                              -----------    -----------    -----------
Other comprehensive income (loss) at
   March 31, 2003                              (1,652,852)       567,586     (1,085,266)
                                              ===========    ===========    ===========
</TABLE>



(5) Stock-based Compensation:

The  Company  accounts  for  stock-based  compensation  to  employees  using the
intrinsic  value  method.  Accordingly,  compensation  cost for stock options to
employees is measured as the excess,  if any , of the quoted market price of the
Company's common stock at the date of the grant over the amount an employee must
pay to acquire the stock.

The following table  illustrates the effect on net income and earnings per share
if the  Company  had  applied  the fair  value  recognition  provisions  of FASB
Statement No. 123,  Accounting  for  Stock-Based  Compensation,  to  stock-based
employee compensation.

                                                                 Three
                                                         Months Ended March 31,
                                                         ----------------------
                                                           2003        2002
                                                         ---------    ---------

Net loss, as reported                                    $ (21,443)   $ (72,064)
Deduct: Total stock-based employee compensation
Expense determined under fair value based method
For all awards, net of related tax effects                    --         (2,025)

                                                         ---------    ---------
Pro forma net loss                                       $ (21,443)   $ (74,089)
                                                         =========    =========

Earnings per share:
     Basic - as reported                                      --            (01)
     Basic - pro forma                                        --           (.02)
     Diluted - as reported                                    --           (.01)
     Diluted pro forma                                        --           (.02)


The fair value of these  options  was  estimated  at the date of grant using the
Black-Scholes   option-pricing   model  with  the  following   weighted  average
assumptions  used for grants  after  1998,  expected  volatility  of 70% to 96%,
risk-free  rate of 3.9% to 6.6%,  no dividend  yield and expected life of 5 to 8
years.

                                       6
<PAGE>


Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Results of Operations
---------------------

Quarter ended March 31, 2003 vs 2002:
-------------------------------------

Sales  for the first  quarter  of 2003  increased  by $  715,812  or 15.9%  when
compared to the corresponding  quarter of 2002. This was primarily the result of
an increase in sales in the jewelry segment in the amount of $ 709,748.  Jewelry
segment revenues were higher due to an improvement in the precious metals market
with  precious  metal sales  increasing  by $ 816,652.  Cost of sales  increased
primarily  due to the increase in sales.  Gross  margins  declined from 23.7% in
2002 to 19.7% in 2003 due to the increase in sales of precious metals which have
a lower margin than jewelry.

Selling,  general and  administration  expenses  decreased by $ 68,111 due staff
reductions.  Depreciation and amortization  expense decreased by $ 10,610 due to
certain assets becoming fully depreciated during late 2002.

Interest  expense  decreased by $ 27,666 due the  re-financing of $ 2,700,000 of
the Company's bank debt in November 2002.

Income taxes are provided at the corporate rate of 34% for both 2003 and 2002.
















                                       7
<PAGE>
<TABLE>
<CAPTION>

Liquidity and Capital Resources
-------------------------------

The Company's  short-term debt,  including current  maturities of long-term debt
totaled  $3,364,550 as of March 31, 2003.  The ability of the Company to finance
its operations and working capital needs are dependent upon management's ability
to negotiate  extended terms or refinance its  short-term  debt. The Company has
historically  renewed,  extended or replaced  short-term  debt as it matures and
management  believes  that it will be able to do so in the future as  short-term
debt matures.

Management of the Company  expects capital  expenditures to total  approximately
$50,000  during the balance of 2003. It is anticipated  that these  expenditures
will be funded from working capital.

From time to time,  management  has adjusted the Company's  inventory  levels to
meet  seasonal  demand  or  in  order  to  meet  working  capital  requirements.
Management  is of the opinion that if  additional  working  capital is required,
additional loans can be obtained from  individuals or from commercial  banks. If
necessary,  inventory  levels  may be  adjusted  or a portion  of the  Company's
investments in marketable  securities may be liquidated in order to meet working
capital requirements.

Contractual Cash Obligations                                 Payments due by year end
----------------------------                                 ------------------------
                                       Total        2003         2004         2005         2006         2007      Thereafter
                                    ----------   ----------   ----------   ----------   ----------   ----------   ----------
<S>                                 <C>          <C>          <C>          <C>          <C>          <C>          <C>
Notes payable                       $3,083,736   $  308,736   $2,775,000         --           --           --           --
Long-term debt and capital leases    1,252,267      135,453   $  295,775   $  387,602   $   43,077   $   43,531   $  346,829
Federal income taxes                   335,453      335,453         --           --           --           --           --
Operating leases                       718,238      245,718      294,093      148,205       18,886       11,336         --
                                    ----------   ----------   ----------   ----------   ----------   ----------   ----------
                                    $5,389,694   $3,896,474   $3,260,618   $  363,760   $  215,387   $   88,272   $  706,940
                                    ==========   ==========   ==========   ==========   ==========   ==========   ==========
</TABLE>


This  report  contains  forward-looking  statements  which  reflect  the view of
Company's management with respect to future events. Although management believes
that  the  expectations   reflected  in  such  forward-looking   statements  are
reasonable,  it can give no assurance that such  expectations will prove to have
been  correct.  Important  factors  that could  cause  actual  results to differ
materially from such  expectations  are a down turn in the current strong retail
climate and the  potential  for  fluctuations  in precious  metals  prices.  The
forward-looking  statements  contained  herein  reflect the current views of the
Company's  management  and the  Company  assumes  no  obligation  to update  the
forward-looking  statements or to update the reasons actual results could differ
from those contemplated by such forward-looking statements.

ITEM 3. Controls and Procedures

Under the supervision and with the  participation  of our management,  including
our  principal  executive  officer  and  principal  financial  officer,  we have
evaluated  the  effectiveness  of the design  and  operation  of our  disclosure
controls  and  procedures  within 90 days of the filing  date of this  quarterly
report,  and, based on their  evaluation,  our principal  executive  officer and
principal  financial  officer have  concluded that these controls and procedures
are  effective.  There are no  significant  changes in our internal  controls or
other factors that could  significantly  affect these controls subsequent to the
date of their  evaluation.  Disclosure  controls and procedures are our controls
and other procedures that are designed to ensure that information required to be
disclosed  by us in the reports that we file or submit under the Exchange Act is
recorded,  processed,  summarized and reported, within the time period specified
in the Securities and Exchange Commission's rules and forms. Disclosure controls
and procedures include, without limitation,  controls and procedures designed to
ensure that  information  required to be  disclosed by us in the reports that we
file under the Exchange Act is accumulated  and  communicated to our management,
including our principal  executive officer and principal  financial officer,  as
appropriate to allow timely decisions regarding required disclosure.







                                        8
<PAGE>

PART II.   OTHER INFORMATION
----------------------------

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         Exhibits -  99.1   Certificate  of  pursuant  to  Section  906  of  the
                            Sarbanes-Oxley Act of 2002, Chief Executive Officer.


         Exhibit  -  99.2   Certificate  of  pursuant  to  Section  906  of  the
                            Sarbanes-Oxley Act of 2002, Chief Financial Officer.


         Reports on Form 8-K - None

Certifications:

I, L.S. Smith, Certify that:

    1.  I have reviewed this quarterly  report on Form 10-QSB of DGSE Companies,
        Inc.;
    2.  Based on my knowledge, this quarterly report does not contain any untrue
        statement of a material fact or omit to state a material fact  necessary
        to make the statements made, in light of the  circumstances  under which
        such  statements  were made, not  misleading  with respect to the period
        covered by this quarterly report;
    3.  Based on my knowledge,  the financial  statements,  and other  financial
        information  included in this  quarterly  report,  fairly present in all
        material  respects the financial  condition,  results of operations  and
        cash flows of the Company as of, and for, the periods  presented in this
        quarterly report;
    4.  The  Company's  other  certifying  officers  and I are  responsible  for
        establishing  and  maintaining  disclosure  controls and  procedures (as
        defined in Exchange  Act Rules 13a-14 and 15d-14) for the Company and we
        have:
        a)  designed  such  disclosure  controls and  procedures  to ensure that
            material  information   relating  to  the  Company,   including  its
            consolidated  subsidiaries,  is made  known to us by  others  within
            those  entities,  particularly  during  the  period  in  which  this
            quarterly report is being prepared;
        b)  Evaluated the effectiveness of the Company's disclosure controls and
            procedures  as of a date  within 90 days prior to the filing date of
            this quarterly report (the "Evaluation Date"); and
        c)  Presented  in  this  quarterly  report  our  conclusions  about  the
            effectiveness of the disclosure controls and procedures based on our
            evaluation as of the Evaluation Date;
    5.  The Company's other certifying  officers and I have disclosed,  based on
        our most recent  evaluation,  to the  Company's  auditors  and the audit
        committee of the Company's board of directors (or persons performing the
        equivalent functions):
        a)  all significant  deficiencies in the design or operation of internal
            controls  which  could  adversely  affect the  Company's  ability to
            record,  process,  summarize  and  report  financial  data  and have
            identified  for the  Company's  auditors  any  material  weakness in
            internal controls; and
        b)  any fraud,  whether or not  material,  that  involves  management or
            other  employees  who  have a  significant  role  in  the  Company's
            internal controls; and
    6.  The Company's  other  certifying  officers and I have  indicated in this
        quarterly  report  whether  or not there  were  significant  changes  in
        internal  controls or in other factors that could  significantly  affect
        internal controls  subsequent to the date of our most recent evaluation,
        including any corrective action with regard to significant  deficiencies
        and material weaknesses.


Date: May 7, 2003          /s/ L.S. Smith - Chairman and Chief Executive Officer
                           -----------------------------------------------------

                                       9
<PAGE>

Certifications:

I, John Benson, Certify that:

    1.  I have reviewed this quarterly  report on Form 10-QSB of DGSE Companies,
        Inc.;
    2.  Based on my knowledge, this quarterly report does not contain any untrue
        statement of a material fact or omit to state a material fact  necessary
        to make the statements made, in light of the  circumstances  under which
        such  statements  were made, not  misleading  with respect to the period
        covered by this quarterly report;
    3.  Based on my knowledge,  the financial  statements,  and other  financial
        information  included in this  quarterly  report,  fairly present in all
        material  respects the financial  condition,  results of operations  and
        cash flows of the Company as of, and for, the periods  presented in this
        quarterly report;
    4.  The  Company's  other  certifying  officers  and I are  responsible  for
        establishing  and  maintaining  disclosure  controls and  procedures (as
        defined in Exchange  Act Rules 13a-14 and 15d-14) for the Company and we
        have:
        a.  designed  such  disclosure  controls and  procedures  to ensure that
            material  information   relating  to  the  Company,   including  its
            consolidated  subsidiaries,  is made  known to us by  others  within
            those  entities,  particularly  during  the  period  in  which  this
            quarterly report is being prepared;
        b.  Evaluated the effectiveness of the Company's disclosure controls and
            procedures  as of a date  within 90 days prior to the filing date of
            this quarterly report (the "Evaluation Date"); and
        c.  Presented  in  this  quarterly  report  our  conclusions  about  the
            effectiveness of the disclosure controls and procedures based on our
            evaluation as of the Evaluation Date;
    5.  The Company's other certifying  officers and I have disclosed,  based on
        our most recent  evaluation,  to the  Company's  auditors  and the audit
        committee of the Company's board of directors (or persons performing the
        equivalent functions):
        a.  all significant  deficiencies in the design or operation of internal
            controls  which  could  adversely  affect the  Company's  ability to
            record,  process,  summarize  and  report  financial  data  and have
            identified  for the  Company's  auditors  any  material  weakness in
            internal controls; and
        b.  any fraud,  whether or not  material,  that  involves  management or
            other  employees  who  have a  significant  role  in  the  Company's
            internal controls; and
    6.  The Company's  other  certifying  officers and I have  indicated in this
        quarterly  report  whether  or not there  were  significant  changes  in
        internal  controls or in other factors that could  significantly  affect
        internal controls  subsequent to the date of our most recent evaluation,
        including any corrective action with regard to significant  deficiencies
        and material weaknesses.

Date: May 7, 2003                      /s/ John Benson - Chief Financial Officer
                                       -----------------------------------------



                                       10
<PAGE>

                                   SIGNATURES


         In  accordance  with  Section  13 and 15(d) of the  Exchange  Act,  the
Registrant  caused  this  report to be signed on its behalf by the  undersigned,
thereunto duly authorized.


DGSE Companies, Inc.


By:      /s/ L. S. Smith                    Dated: May 7, 2003
         -------------------------
         L. S. Smith
         Chairman of the Board,
         Chief Executive Officer and
         Secretary

         In accordance  with the Exchange Act, this report has been signed below
by the following  persons on behalf of the  Registrant and in the capacities and
on the date indicated.


By:      /s/ L. S. Smith                    Dated: May 7, 2003
         -------------------------
         L. S. Smith
         Chairman of the Board,
         Chief Executive Officer and
         Secretary


By:      /s/ W. H. Oyster                   Dated: May 7, 2003
         -------------------------
         W. H. Oyster
         Director, President and
         Chief Operating Officer


By:      /s/ John Benson                    Dated: May 7, 2003
         -------------------------
         John Benson
         Chief Financial Officer
         (Principal Accounting Officer)









                                       11