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 June 30, 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 August 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                                                        June 30,      December 31,
                                                                2003            2002
                                                            ------------    ------------
<S>                                                         <C>             <C>
CURRENT ASSETS
    Cash and cash equivalents                               $    136,145    $    498,408
    Trade receivables                                            631,497         792,590
    Inventories                                                6,619,235       6,335,742
    Prepaid expenses                                             213,774         152,854
                                                            ------------    ------------

                 Total current assets                          7,600,651       7,779,594

MARKETABLE SECURITIES - AVAILABLE FOR SALE                       205,926         176,908

PROPERTY AND EQUIPMENT - AT COST, NET                          1,082,227       1,157,225

DEFERRED TAX ASSET                                                               120,433

GOODWILL                                                       1,151,120       1,151,120

OTHER ASSETS                                                     165,376         160,109
                                                            ------------    ------------

                                                            $ 10,205,300    $ 10,545,389
                                                            ============    ============

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
    Notes payable                                           $  3,183,736    $    689,641
    Current maturities of long-term debt                         273,314         174,245
    Accounts payable - trade                                     440,834         591,479
    Accrued expenses                                             221,182         677,104
    Customer deposits                                             97,744         106,314
    Federal income taxes payable                                 224,194         485,453
                                                            ------------    ------------

                 Total current liabilities                     4,441,004       2,724,236


Long-term debt, less current maturities                          932,308       3,066,797
Deferred income taxes                                             23,167           2,827
                                                            ------------    ------------

                 Total liabilities                             5,396,479       5,793,860

SHAREHOLDERS' EQUITY
    Common stock, $.01 par value; authorized 10,000,000
       shares; issued and outstanding 4,913,290 shares at
       June 30, 2003 and December 31, 2002                        49,133          49,133
    Additional paid-in capital                                 5,708,760       5,708,760
    Accumulated other comprehensive loss                      (1,115,798)     (1,134,950)
    Accumulated earnings                                         166,726         128,586
                                                            ------------    ------------

                 Total shareholders' equity                    4,808,821       4,751,529

                                                            $ 10,205,300    $ 10,545,389
                                                            ============    ============
</TABLE>

                                        2
<PAGE>

DGSE Companies, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended
(Unaudited)


                                                 June 30, 2003    June 30, 2002
                                                 -------------    -------------
Revenue
    Sales                                        $   5,807,563    $   5,370,233
    Pawn services charges                               41,630           46,112
                                                 -------------    -------------
                                                     5,849,193        5,416,345

Costs and expenses
    Cost of goods sold                               4,643,872        4,226,467
    Consulting service costs                            11,156           11,930
    Selling, general and administrative expenses       987,803        1,049,558
    Depreciation and amortization                       43,080           53,533
                                                 -------------    -------------
                                                     5,685,911        5,341,488
Other income (expense)
   Interest expense                                    (73,005)         (97,840)
                                                 -------------    -------------
                 Total other income (expense)          (73,005)         (97,840)

              Income (loss) before income taxes         90,277          (22,983)

Income tax expense (benefit)                            30,694           (7,814)
                                                 -------------    -------------

              Net income (loss)                  $      59,583    $     (15,169)
                                                 =============    =============


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

     Weighted average number of common shares
         Basic and diluted                           4,913,290        4,913,790





                                       3
<PAGE>

DGSE Companies, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS
Six months ended
(Unaudited)


                                                 June 30, 2003   June 30, 2002
                                                 -------------    -------------

Revenue
    Sales                                        $  11,025,483    $   9,872,341
    Pawn services charges                               83,512           79,860
                                                 -------------    -------------
                                                    11,108,995        9,952,201

Costs and expenses
    Cost of goods sold                               8,833,930        7,662,541
    Consulting service costs                            26,879           28,003
    Selling, general and administrative expenses     1,964,265        2,094,131
    Depreciation and amortization                       85,098          106,161
                                                 -------------    -------------
                                                    10,910,172        9,890,836
Other income (expense)
   Interest expense                                   (141,035)        (193,536)
                                                 -------------    -------------
                 Total other income (expense)         (141,035)        (193,536)

              Income (loss) before income taxes         57,788         (132,171)

Income tax expense (benefit)                            19,648          (44,936)
                                                 -------------    -------------

              Net income (loss)                  $      38,140    $     (87,233)
                                                 =============    =============


Earnings per common share
     Basic and diluted                           $         .01    $        (.02)

     Weighted average number of common shares
          Basic and diluted                          4,913,290        4,913,593








                                       4
<PAGE>
<TABLE>
<CAPTION>

DGSE COMPANIES, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)


                                                                     Six Months Ended
                                                                         June 30,
                                                                    2002           2003
                                                                -----------    -----------
<S>                                                             <C>            <C>
Cash Flows From Operations
Reconciliation of net loss to net cash
  used in  operating activities
    Net income (loss)                                           $    38,140    $   (87,233)
    Common stock issued for services                                   --            1,074
    Depreciation and amortization                                    85,098        106,161

      (Increase) decrease in operating assets and liabilities
          Trade receivables                                         161,093         89,716
          Inventories                                              (283,493)      (145,240)
          Prepaid expenses and other current assets                 (60,920)       (33,266)
          Accounts payable and accrued expenses                    (606,567)      (755,100)
          Customer deposits                                          (8,570)        26,822
          Federal income taxes payable                             (130,352)       (44,938)
          Other assets                                               (5,267)         2,522
                                                                -----------    -----------
            Total net cash used in operating activities            (810,838)      (839,482)

Cash flows from investing activities
          Purchase of marketable securities                            --             --
          Purchase of property and equipment                        (10,100)       (28,267)
                                                                -----------    -----------
            Net cash used in investing activities                   (10,100)       (28,267)

Cash flows from financing activities
          Proceeds from notes issued                                725,000        560,555
          Payments on notes payable                                (266,325)      (745,283)
                                                                -----------    -----------
            Net cash used in financing activities                   458,675       (184,728)
                                                                -----------    -----------

Net decrease in cash and cash equivalents                          (362,263)    (1,052,477)

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

Cash and cash equivalents at end of period                      $   136,145    $    10,583
                                                                ===========    ===========
</TABLE>

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

Interest  paid for the six months ended June 30, 2003 and 2002 was $ 141,035 and
$193,536, respectively.

Income  taxes in the amount of $ 150,000  were paid during the six months  ended
June 30, 2003.


                                       5
<PAGE>

(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  June 30 2003 and 2002
because the effect is not dilutive.

(3)  - Business segment information

The Company's  operations by business  segment for the six months ended June 30,
were as follows:
<TABLE>
<CAPTION>
                                                    Consulting &      Corporate
                                     Jewelry        Liquidations      & Other       Consolidated
                                     ------------   ------------    ------------    ------------
<S>                                  <C>            <C>             <C>             <C>
Revenues
  2003                               $ 10,854,571   $    254,424            --      $ 11,108,995
  2002                               $  9,552,970   $    399,231            --      $  9,952,201
Income (loss) before income taxes
  2003                               $    158,267   $    (46,992)   $    (53,487)   $     57,788
  2002                               $    172,380   $   (291,258)   $    (13,293)   $   (132,171)
Identifiable assets
  2003                               $  9,498,916   $    802,435    $     14,516    $ 10,315,867
  2002                               $  9,106,032   $  1,141,144    $       --      $ 10,247,176
Capital expenditures
  2003                               $     10,100   $       --                $-    $     10,100
  2002                               $     28,267   $       --                $-    $     28,267
Depreciation and
amortization
  2003                               $     81,348   $      3,750    $       --      $     85,098
  2002                               $     70,222   $      5,939    $       --      $    106,161

   The Company's operations by business segment for the three months ended June
30, were as follows:
                                                    Consulting &      Corporate
                                     Jewelry        Liquidations      & Other       Consolidated
                                     ------------   ------------    ------------    ------------

Revenues
  2003                               $  5,712,644   $    136,549            --      $  5,849,193
  2002                               $  5,128,925   $    287,420            --      $  5,416,345
Income (loss) before income taxes
  2003                               $    134,426   $    (14,664)   $     29,485)   $     90,277
  2002                               $     72,680   $    (86,279)   $     (9,384)   $    (22,983)
Identifiable assets
  2003                               $  9,498,916   $    802,435    $     14,516    $ 10,315,867
  2002                               $  9,106,032   $  1,141,144    $       --      $ 10,247,176
Capital expenditures
  2003                               $      7,707   $       --      $       --      $      7,707
  2002                               $     28,267   $       --      $       --      $     28,267
Depreciation and
amortization
  2003                               $     41,205   $      1,875    $       --      $     43,080
  2002                               $     35,459   $     18,074    $       --      $     53,533
</TABLE>



                                       6
<PAGE>
<TABLE>
<CAPTION>

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)
Unrealized holding gains arising during the
   Three months ended June 30, 2003               (46,260)        15,728        (30,532)
                                              -----------    -----------    -----------
Other comprehensive income (loss) at
   June 30, 2003                              $(1,699,112)   $   583,314    $(1,115,798)
                                              ===========    ===========    ===========
</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.

                                                     Six 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            (02)
   Basic - pro forma                                         .01           (.03)
   Diluted - as reported                                     .01           (.02)
   Diluted pro forma                                         .01           (.03)

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.







                                       7
<PAGE>

Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Results of Operations
---------------------



Quarter ended June 30, 2003 vs 2002:
------------------------------------
Sales  for the  second  quarter  of 2003  increased  by $  437,330  or 8.1% 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 $ 583,719.  Jewelry
segment revenues were higher due to an improvement in the precious metals market
with  precious  metal sales  increasing  by $ 387,577.  Cost of sales  increased
primarily  due to the increase in sales.  Gross  margins  declined from 21.3% in
2002 to 20.0% 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 $ 61,775 due staff
reductions.  Depreciation and amortization  expense decreased by $ 10,453 due to
certain assets becoming fully depreciated during late 2002.

Interest  expense  decreased by $ 24,835 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.



Six months ended June 30, 2003 vs 2002:
---------------------------------------
Sales for the first half of 2003 increased by $ 1,153,142 or 11.7% when compared
to the  corresponding  period  of 2002.  This was  primarily  the  result  of an
increase in sales in the jewelry  segment in the amount of $ 1,301,781.  Jewelry
segment revenues were higher due to an improvement in the precious metals market
with precious  metal sales  increasing by $ 1,223,669.  Cost of sales  increased
primarily  due to the increase in sales.  Gross  margins  declined from 22.4% in
2002 to 19.9% 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 $ 129,866 due staff
reductions.  Depreciation and amortization  expense decreased by $ 21,063 due to
certain assets becoming fully depreciated during late 2002.

Interest  expense  decreased by $ 74,383 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.





                                       8
<PAGE>

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

The Company's  short-term debt,  including current  maturities of long-term debt
totaled  $3,457,050  as of June 30, 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
$25,000  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.
<TABLE>
<CAPTION>

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                      $3,183,736   $  383,736   $2,800,000         --           --           --           --
Long-term debt and capital leases    1,205,622       88,808      295,775   $  387,602   $   43,077   $   43,531   $  346,829
Federal income taxes                   355,101      355,101         --           --           --           --           --
Operating leases                       636,332      163,812      294,093      148,205       18,886       11,336         --
                                    ----------   ----------   ----------   ----------   ----------   ----------   ----------
                                    $5,380,791   $  991,457   $3,389,868   $  535,807   $   61,963   $   54,867   $  346,829
                                    ==========   ==========   ==========   ==========   ==========   ==========   ==========
</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.


                                       9
<PAGE>

PART II.   OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         Exhibit -  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



                                   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: July 31, 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: July 31, 2003
         -------------------------
         L. S. Smith
         Chairman of the Board,
         Chief Executive Officer and
         Secretary

By:      /s/ W. H. Oyster                   Dated: July 31, 2003
         -------------------------
         W. H. Oyster
                  Director, President and
         Chief Operating Officer

By:      /s/ John Benson                    Dated: July 31, 2003
         -------------------------
         John Benson
         Chief Financial Officer
         (Principal Accounting Officer)


                                       10