**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**Form 10-Q**

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

**For      the quarterly period ended June 30, 2008**

**or**

|   |   |                                                                                                                                      |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|
| o      |   | **TRANSITION                REPORT PURSUANT TO 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.**

*Exact      name of registrant as specified in its charter*

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

**11311      Reeder Road**

**Dallas,      Texas 75229**

**(972) 484-3662**

*(Address,      including zip code, and telephone*

*number,      including area code, of registrant’s*

*principal      executive offices)*

**NONE**

*(Former      name, former address and former*

*fiscal      year, if changed since last report)*

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

|                                                  |   |        |
|-------------------------------------------------------|--------|-------------|
| Class                                                 |   | Outstanding |
| Common                stock, $.01 par value per share |   | 9,833,635   |

----

**TABLE      OF CONTENTS**

| **PART                  I.**  |   | **FINANCIAL                  INFORMATION**                                             |   | **Page                  No.** |
|-------------------------------|--------|----------------------------------------------------------------------------------------|--------|-------------------------------|
|                          |   |                                                                                   |   |                          |
| Item                  1.      |   | Consolidated                  Financial Statements.                                    |   |                          |
|                          |   |                                                                                   |   |                          |
|                          |   | Consolidated                  Balance Sheets as of June 30, 2008 and December 31, 2007 |   | 1                             |
|                          |   |                                                                                   |   |                          |
|                          |   | Consolidated                  Statements of Operations for the three months ended      |   | 2                             |
|                          |   | June                  30, 2008 and 2007                                                |   |                          |
|                          |   |                                                                                   |   |                          |
|                          |   | Consolidated                  Statements of Operations for the six months ended        |   | 3                             |
|                          |   | June                  30, 2008 and 2007                                                |   |                          |
|                          |   |                                                                                   |   |                          |
|                          |   | Consolidated                  Statements of Cash Flows for the six months ended        |   | 4                             |
|                          |   | June                  30, 2008 and 2007                                                |   |                          |
|                          |   |                                                                                   |   |                          |
|                          |   | Notes                  to Consolidated Financial Statements                            |   | 5                             |
|                          |   |                                                                                   |   |                          |
| Item                  2.      |   | Management’s                  Discussion and Analysis of Financial Condition     |   |                          |
|                          |   | and                  Results of Operations.                                            |   |                          |
|                          |   |                                                                                   |   |                          |
| Item                  3.      |   | Quantitative                  and Qualitative Disclosures About Market Risk.           |   | 16                            |
|                          |   |                                                                                   |   |                          |
| Item                  4.      |   | Controls                  and Procedures.                                              |   | 16                            |
|                          |   |                                                                                   |   |                          |
| **PART                  II.** |   | **OTHER                  INFORMATION**                                                 |   |                          |
|                          |   |                                                                                   |   |                          |
| Item                  3.      |   | Legal                  Proceedings.                                                    |   | 17                            |
|                          |   |                                                                                   |   |                          |
| Item                  5.      |   | Other                  Information.                                                    |   | 17                            |
|                          |   |                                                                                   |   |                          |
| Item                  6.      |   | Exhibits.                                                                              |   | 18                            |
|                          |   |                                                                                   |   |                          |
| **SIGNATURES**                |   |                                                                                   |   |                          |

----

***DGSE      Companies, Inc. and Subsidiaries***

**PART      I. FINANCIAL INFORMATION**

**Item      1. Consolidated Financial Statements.**

**CONSOLIDATED      BALANCE SHEETS**

|                                                                                                                                                                                                                                   |   | **June                30,****2008**  |       | **December                31, 2007**  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|------------|--------------------------------------------|--------|
|                                                                                                                                                                                                                                   |   | **Unaudited**                        |       |                                       |   |
| **ASSETS**                                                                                                                                                                                                                             |   |                                      |       |                                       |   |
| Current                Assets:                                                                                                                                                                                                         |   |                                      |       |                                       |   |
| Cash                and cash equivalents                                                                                                                                                                                          |   | $                                         | 934,051    |                                       | $      | 536,548 |   |
| Trade                receivables                                                                                                                                                                                                       |   |                                      | 5,052,894  |                                       |   | 3,792,474 |   |
| Auction                advances                                                                                                                                                                                                        |   |                                      | 1,002,157  |                                       |   | 747,000 |   |
| Inventories                                                                                                                                                                                                                            |   |                                      | 15,046,163 |                                       |   | 12,975,782 |   |
|  Prepaid                expenses                                                                                                                                                                                                  |   |                                      | 713,736    |                                       |   | 459,486 |   |
| Prepaid                federal income tax                                                                                                                                                                                              |   |                                      | —    |                                       |   | 59,341 |   |
| Total                current assets                                                                                                                                                                                                    |   |                                      | 22,749,001 |                                       |   | 18,570,631 |   |
|                                                                                                                                                                                                                                   |   |                                      |       |                                       |   |   |   |
| Marketable                securities - available for sale                                                                                                                                                                              |   |                                      | 20,532     |                                       |   | 61,769 |   |
| Property                and equipment, net                                                                                                                                                                                             |   |                                      | 4,645,462  |                                       |   | 4,193,869 |   |
| Deferred                income taxes                                                                                                                                                                                                   |   |                                      | 1,717,131  |                                       |   | 1,805,205 |   |
| Goodwill                                                                                                                                                                                                                               |   |                                      | 9,013,880  |                                       |   | 8,952,181 |   |
| Intangible                assets                                                                                                                                                                                                       |   |                                      | 2,521,340  |                                       |   | 2,521,340 |   |
| Other                long-term receivable                                                                                                                                                                                              |   |                                      | 465,971    |                                       |   | 444,383 |   |
| Other                assets                                                                                                                                                                                                            |   |                                      | 228,247    |                                       |   | 309,836 |   |
|                                                                                                                                                                                                                                   |   | $                                         | 41,361,564 |                                       | $      | 36,859,214 |   |
|                                                                                                                                                                                                                                   |   |                                      |       |                                       |   |   |   |
| **LIABILITIES**                                                                                                                                                                                                                        |   |                                      |       |                                       |   |   |   |
| Current                Liabilities:                                                                                                                                                                                                    |   |                                      |       |                                       |   |   |   |
| Notes                payable                                                                                                                                                                                                           |   | $                                         | 187,463    |                                       | $      | 187,467 |   |
| Current                maturities of long-term debt                                                                                                                                                                                    |   |                                      | 501,631    |                                       |   | 501,631 |   |
| Accounts                payable - trade                                                                                                                                                                                                |   |                                      | 3,657,565  |                                       |   | 1,069,194 |   |
| Federal                income tax payable                                                                                                                                                                                              |   |                                      | 195,469    |                                       |   | — |   |
| Accrued                expenses                                                                                                                                                                                                        |   |                                      | 444,669    |                                       |   | 1,018,003 |   |
| Customer                deposits                                                                                                                                                                                                       |   |                                      | 1,191,634  |                                       |   | 315,437 |   |
| Total                current liabilities                                                                                                                                                                                               |   |                                      | 6,178,431  |                                       |   | 3,091,732 |   |
|                                                                                                                                                                                                                                   |   |                                      |       |                                       |   |   |   |
| Long-term                debt, less current maturities                                                                                                                                                                                 |   |                                      | 13,924,797 |                                       |   | 13,489,901 |   |
|                                                                                                                                                                                                                                   |   |                                      | 20,103,228 |                                       |   | 16,581,633 |   |
|                                                                                                                                                                                                                                   |   |                                      |       |                                       |   |   |   |
| **STOCKHOLDERS’                EQUITY**                                                                                                                                                                                          |   |                                      |       |                                       |   |   |   |
| Common                stock, $.01 par value; 30,000,000 shares authorized; 9,833,635 and                9,490,357 shares issued and outstanding at the end of each period                in 2008                and 2007, respectively |   |                                      | 98,337     |                                       |   | 94,904 |   |
| Additional                paid-in capital                                                                                                                                                                                              |   |                                      | 18,503,353 |                                       |   | 18,473,234 |   |
| Accumulated                other comprehensive loss                                                                                                                                                                                    |   |                                      | (117,264   | )                                          |   | (97,288 | ) |
| Retained                earnings                                                                                                                                                                                                       |   |                                      | 2,773,910  |                                       |   | 1,806,731 |   |
|                                                                                                                                                                                                                                   |   |                                      | 21,258,336 |                                       |   | 20,277,581 |   |
|                                                                                                                                                                                                                                   |   |                                      |       |                                       |   |   |   |
|                                                                                                                                                                                                                                   |   | $                                         | 41,361,564 |                                       | $      | 36,859,214 |   |

----

***DGSE      Companies, Inc. and Subsidiaries***

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

|                                                                                                                                                     |   | **Three                months ended June 30,** |       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|------------|
|                                                                                                                                                     |   | **2008**                                       |       | **2007** |   |
|                                                                                                                                                     |   | **Unaudited**                                  |       |
| Revenue                                                                                                                                                  |   |                                           |       |   |   |   |   |
| Sales                                                                                                                                               |   | $                                              | 26,244,397 |   | $ | 12,351,892 |   |
| Consumer                loan service charges                                                                                                        |   |                                           | 130,849    |   |   | 61,410 |   |
| Management                fees                                                                                                                      |   |                                           | —    |   |   | 100,000 |   |
|                                                                                                                                                     |   |                                           | 26,375,246 |   |   | 12,513,302 |   |
|                                                                                                                                                     |   |                                           |       |   |   |   |   |
| Costs                and expenses                                                                                                                        |   |                                           |       |   |   |   |   |
| Cost                of goods sold                                                                                                                   |   |                                           | 22,211,744 |   |   | 10,232,710 |   |
| Selling,                general and administrative expenses                                                                                         |   |                                           | 3,320,037  |   |   | 1,644,766 |   |
| Depreciation                and amortization                                                                                                        |   |                                           | 83,396     |   |   | 60,851 |   |
|                                                                                                                                                     |   |                                           | 25,615,177 |   |   | 11,938,327 |   |
|                                                                                                                                                     |   |                                           |       |   |   |   |   |
| Operating                income                                                                                                                          |   |                                           | 760,069    |   |   | 574,975 |   |
|                                                                                                                                                     |   |                                           |       |   |   |   |   |
| Other                expense (income)                                                                                                                    |   |                                           |       |   |   |   |   |
| Other                income                                                                                                                         |   |                                           | (12,125    | ) |   | (2,251 | ) |
| Interest                expense                                                                                                                     |   |                                           | 189,961    |   |   | 137,896 |   |
|                                                                                                                                                     |   |                                           |       |   |   |   |   |
| Earnings                before income taxes                                                                                                              |   |                                           | 582,233    |   |   | 439,330 |   |
|                                                                                                                                                     |   |                                           |       |   |   |   |   |
| Income                tax expense                                                                                                                   |   |                                           | 92,309     |   |   | 149,369 |   |
|                                                                                                                                                     |   |                                           |       |   |   |   |   |
| Net                earnings from continuing operations                                                                                                   |   |                                           | 489,924    |   |   | 289,961 |   |
|                                                                                                                                                     |   |                                           |       |   |   |   |   |
| Discontinued                operations:                                                                                                             |   |                                           |       |   |   |   |   |
| Loss                from discontinued operations (less applicable income tax benefit                of $0 and                $6,247, respectively)  |   |                                           | —    |   |   | 12,128 |   |
|                                                                                                                                                     |   |                                           |       |   |   |   |   |
| Net                earnings                                                                                                                         |   | $                                              | 489,924    |   | $ | 277,833 |   |
|                                                                                                                                                     |   |                                           |       |   |   |   |   |
| Earnings                per common share - basic                                                                                                    |   | $                                              | 0.05       |   | $ | 0.04 |   |
|                                                                                                                                                     |   |                                           |       |   |   |   |   |
| Earnings                per common share - diluted                                                                                                  |   | $                                              | 0.05       |   | $ | 0.04 |   |
|                                                                                                                                                     |   |                                           |       |   |   |   |   |
| Weighted                average number of common shares:                                                                                                 |   |                                           |       |   |   |   |   |
| Basic                                                                                                                                               |   |                                           | 9,666,182  |   |   | 5,320,964 |   |
| Diluted                                                                                                                                             |   |                                           | 10,344,363 |   |   | 6,731,618 |   |

----

***DGSE      Companies, Inc. and Subsidiaries***

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

|                                                                                                                                                      |   | **Six                months ended June 30,** |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|------------|
|                                                                                                                                                      |   | **2008**                                     |       | **2007** |   |
|                                                                                                                                                      |   | **Unaudited**                                |       |
| Revenue                                                                                                                                                   |   |                                         |       |   |   |
| Sales                                                                                                                                                |   | $                                            | 58,847,619 |   | $ | 22,328,270 |   |
| Consumer                loan service charges                                                                                                         |   |                                         | 255,169    |   |   | 109,300 |   |
| Management                fees                                                                                                                       |   |                                         | —    |   |   | 250,000 |   |
|                                                                                                                                                      |   |                                         | 59,102,788 |   |   | 22,687,570 |   |
|                                                                                                                                                      |   |                                         |       |   |   |   |   |
| Costs                and expenses                                                                                                                         |   |                                         |       |   |   |   |   |
| Cost                of goods sold                                                                                                                    |   |                                         | 50,631,760 |   |   | 18,626,943 |   |
| Selling,                general and administrative expenses                                                                                          |   |                                         | 6,601,849  |   |   | 2,971,185 |   |
| Depreciation                and amortization                                                                                                         |   |                                         | 193,232    |   |   | 99,543 |   |
|                                                                                                                                                      |   |                                         | 57,426,841 |   |   | 21,697,671 |   |
|                                                                                                                                                      |   |                                         |       |   |   |   |   |
| Operating                income                                                                                                                           |   |                                         | 1,675,947  |   |   | 989,899 |   |
|                                                                                                                                                      |   |                                         |       |   |   |   |   |
| Other                expense (income)                                                                                                                     |   |                                         |       |   |   |   |   |
| Other                income                                                                                                                          |   |                                         | (25,341    | ) |   | (2,251 | ) |
| Interest                expense                                                                                                                      |   |                                         | 375,167    |   |   | 245,136 |   |
|                                                                                                                                                      |   |                                         |       |   |   |   |   |
| Earnings                before income taxes                                                                                                               |   |                                         | 1,326,121  |   |   | 747,014 |   |
|                                                                                                                                                      |   |                                         |       |   |   |   |   |
| Income                tax expense                                                                                                                    |   |                                         | 358,942    |   |   | 253,985 |   |
|                                                                                                                                                      |   |                                         |       |   |   |   |   |
| Net                earnings from continuing operations                                                                                                    |   |                                         | 967,179    |   |   | 493,029 |   |
|                                                                                                                                                      |   |                                         |       |   |   |   |   |
| Discontinued                operations:                                                                                                              |   |                                         |       |   |   |   |   |
| Loss                from discontinued operations (less applicable income tax benefit                of $0 and                $16,892, respectively)  |   |                                         | —    |   |   | 32,781 |   |
|                                                                                                                                                      |   |                                         |       |   |   |   |   |
| Net                earnings                                                                                                                          |   | $                                            | 967,179    |   | $ | 460,248 |   |
|                                                                                                                                                      |   |                                         |       |   |   |   |   |
| Earnings                per common share - basic                                                                                                     |   | $                                            | 0.10       |   | $ | 0.09 |   |
|                                                                                                                                                      |   |                                         |       |   |   |   |   |
| Earnings                per common share - diluted                                                                                                   |   | $                                            | 0.09       |   | $ | 0.08 |   |
|                                                                                                                                                      |   |                                         |       |   |   |   |   |
| Weighted                average number of common shares:                                                                                                  |   |                                         |       |   |   |   |   |
| Basic                                                                                                                                                |   |                                         | 9,582,456  |   |   | 5,117,127 |   |
| Diluted                                                                                                                                              |   |                                         | 10,344,363 |   |   | 5,876,827 |   |

----

***DGSE      COMPANIES, Inc. and Subsidiaries***

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

|                                                                                                             |   | **Six                months ended June 30,** |       |
|------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|------------|
|                                                                                                             |   | **2008**                                     |       | **2007** |   |
| **Cash                flows from operating activities**                                                          |   | **Unaudited**                                |       |
|                                                                                                             |   |                                         |       |   |   |
| Net                earnings                                                                                 |   | $                                            | 967,179    |   | $ | 460,248 |   |
| Adjustments                to reconcile net earnings to net cash provided by operating                activities |   |                                         |       |   |   |   |   |
| Depreciation                and amortization                                                                |   |                                         | 193,232    |   |   | 121,719 |   |
| Deferred                income taxes                                                                        |   |                                         | 88,074     |   |   | — |   |
| Loss                on marketable securities                                                                |   |                                         | 41,237     |   |   | — |   |
| (Increase)                decrease in operating assets and liabilities                                           |   |                                         |       |   |   |   |   |
| Trade                receivables                                                                            |   |                                         | (1,526,674 | ) |   | (787,467 | ) |
| Inventories                                                                                                 |   |                                         | (2,070,381 | ) |   | 151,724 |   |
| Prepaid                expenses and other current assets                                                    |   |                                         | (254,250   | ) |   | (470,052 | ) |
| Accounts                payable and accrued expenses                                                        |   |                                         | 2,028,613  |   |   | (209,052 | ) |
| Customer                deposits                                                                            |   |                                         | 876,197    |   |   | 261,929 |   |
| Federal                income taxes payable                                                                 |   |                                         | 254,810    |   |   | 200,401 |   |
| Other                assets                                                                                 |   |                                         | 81,589     |   |   | (6,574 | ) |
| Net                cash provided by (used in) operating activities                                               |   |                                         | 679,626    |   |   | (288,754 | ) |
| **Cash                flows from investing activities**                                                          |   |                                         |       |   |   |   |   |
| Pawn                loans made                                                                              |   |                                         | (617,382   | ) |   | (340,725 | ) |
| Pawn                loans repaid                                                                            |   |                                         | 291,528    |   |   | 215,453 |   |
| Recovery                of pawn loan principal through sale of forfeited collateral                         |   |                                         | 315,363    |   |   | 58,887 |   |
| Pay                day loans made                                                                           |   |                                         | —    |   |   | (155,451 | ) |
| Pay                day loans repaid                                                                         |   |                                         | —    |   |   | 120,335 |   |
| Purchase                of property and equipment                                                           |   |                                         | (644,825   | ) |   | (103,529 | ) |
| Acquisition                of Euless Gold & Silver                                                      |   |                                         | —    |   |   | (600,000 | ) |
| Merger                costs paid                                                                            |   |                                         | (61,699    | ) |   | (395,280 | ) |
| Net                cash used in investing activities                                                             |   |                                         | (717,015   | ) |   | (1,200,310 | ) |
| **Cash                flows from financing activities**                                                          |   |                                         |       |   |   |   |   |
| Proceeds                from line of credit                                                                 |   |                                         | 1,250,000  |   |   | 1,359,077 |   |
| Payments                of capital lease                                                                    |   |                                         | (3,972     | ) |   | — |   |
| Conversion                of warrants                                                                       |   |                                         | —    |   |   | 78,363 |   |
| Repayments                of notes payable                                                                  |   |                                         | (811,136   | ) |   | (140,529 | ) |
| Net                cash provided by (used in) financing activities                                          |   |                                         | 434,892    |   |   | 1,296,911 |   |
|                                                                                                             |   |                                         |       |   |   |   |   |
| NET                INCREASE (DECREASE) IN CASH AND CASH EQUIVILANTS EQUIVALENTS                                  |   |                                         | 397,503    |   |   | (192,153 | ) |
| Cash                and cash equivalents at beginning of period                                             |   |                                         | 536,548    |   |   | 1,210,282 |   |
| Cash                and cash equivalents at end of period                                                   |   | $                                            | 934,051    |   | $ | 1,018,129 |   |

**Supplemental      disclosures:**

----

***DGSE      COMPANIES, Inc. and Subsidiaries***

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(1)      Basis of Presentation.**

**(2)      Inventory.**

|                      |   | June                30, 2008 |       | December                31, 2007 |   |
|---------------------------|--------|------------------------------|------------|----------------------------------|--------|
| Jewelry                   |   | $                            | 9,903,708  |                             | $      | 8,118,454 |   |
| Rare                coins |   |                         | 2,937,412  |                             |   | 3,482,248 |   |
| Bullion                   |   |                         | 1,175,176  |                             |   | 486,991 |   |
| Scrap                gold |   |                         | 399,720    |                             |   | 414,099 |   |
| Other                     |   |                         | 630,147    |                             |   | 473,990 |   |
| Total                     |   | $                            | 15,046,163 |                             | $      | 12,975,782 |   |

**(3)      Trade Receivables.**

----

***DGSE      COMPANIES, Inc. and      Subsidiaries***

**(4)      Earnings per share.**

|                                             |   | **2008**                                       |    | **2007**                                       |   |
|--------------------------------------------------|--------|------------------------------------------------|---------|------------------------------------------------|--------|
|                                             |   | **Three                months ended June 30,** |    | **Three                months ended June 30,** |   |
|                                             |   | **Net                Earnings**                |    | **Shares**                                     |   | **Per                share** |   | **Net                Earnings** |   | **Shares** |   | **Per                share** |   |
|                                             |   |                                           |    |                                           |   |   |   |   |   |   |   |   |   |
| Basic                earnings per common share   |   | $                                              | 489,924 |                                           |   | 9,666,182 |   | $ | 0.05 |   | $ | 277,833 |   |   | 5,320,964 |   | $ | 0.05 |   |
| Effect                of dilutive stock options  |   |                                           | — |                                           |   | 678,181 |   |   | — |   |   | — |   |   | 1,410,654 |   |   | (0.01 | ) |
|                                             |   |                                           |         |                                           |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Diluted                earnings per common share |   | $                                              | 489,924 |                                           |   | 10,344,363 |   | $ | 0.05 |   | $ | 277,833 |   |   | 6,731,618 |   | $ | 0.04 |   |

|                                             |   | **2008**                                     |    | **2007**                                     |   |
|--------------------------------------------------|--------|----------------------------------------------|---------|----------------------------------------------|--------|
|                                             |   | **Six                months ended June 30,** |    | **Six                months ended June 30,** |   |
|                                             |   | **Net                Earnings**              |    | **Shares**                                   |   | **Per                share** |   | **Net                Earnings** |   | **Shares** |   | **Per                share** |   |
|                                             |   |                                         |    |                                         |   |   |   |   |   |   |   |   |   |
| Basic                earnings per common share   |   | $                                            | 967,179 |                                         |   | 9,582,456 |   | $ | 0.10 |   | $ | 460,248 |   |   | 5,117,127 |   | $ | 0.09 |   |
| Effect                of dilutive stock options  |   |                                         | — |                                         |   | 761,907 |   |   | (0.01 | ) |   | — |   |   | 759,700 |   |   | (0.01 | ) |
|                                             |   |                                         |         |                                         |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Diluted                earnings per common share |   | $                                            | 967,179 |                                         |   | 10,344,363 |   | $ | 0.09 |   | $ | 460,248 |   |   | 5,876,827 |   | $ | 0.08 |   |

**(5)      Business segment information.**

| ***(In                thousands)***          |   | **Retail                Jewelry** |    | **Wholesale****Jewelry** |   | **Precious                Metals** |   | **Rare                Coins** |    | **Auctions** |   | **Corporate                and Other** |   | **Consolidated** |    |
|----------------------------------------------|--------|-----------------------------------|---------|--------------------------|--------|------------------------------------|--------|-------------------------------|---------|--------------|--------|----------------------------------------|--------|------------------|---------|
| Revenues                                     |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |
| 2008                                         |   | $                                 | 14,271  |                     | $      | 2,497                              |   | $                             | 26,874  |         | $      | 13,115                                 |   | $                | 1,214   |   | $ | 1,132 |   | $ | 59,103 |   |
| 2007                                         |   |                              | 8,056   |                     |   | 2,843                              |   |                          | 6,287   |         |   | 4,622                                  |   |             | 326     |   |   | 554 |   |   | 22,688 |   |
|                                         |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| Net                earnings (loss)           |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| 2008                                         |   |                              | 606     |                     |   | 47                                 |   |                          | 372     |         |   | 12                                     |   |             | 46      |   |   | (116 | ) |   | 967 |   |
| 2007                                         |   |                              | 93      |                     |   | 66                                 |   |                          | 69      |         |   | 30                                     |   |             | 147     |   |   | 55 |   |   | 460 |   |
|                                         |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| Identifiable                assets           |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| 2008                                         |   |                              | 20,478  |                     |   | 1,280                              |   |                          | 1,180   |         |   | 3,790                                  |   |             | 3,966   |   |   | 1,654 |   |   | 32,348 |   |
| 2007                                         |   |                              | 11,141  |                     |   | 1,204                              |   |                          | 344     |         |   | 3,568                                  |   |             | 941     |   |   | 984 |   |   | 18,182 |   |
|                                         |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| Goodwill                                     |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| 2008                                         |   |                              | — |                     |   | 837                                |   |                          | — |         |   | —                                |   |             | — |   |   | 8,167 |   |   | 9,014 |   |
| 2007                                         |   |                              | — |                     |   | 837                                |   |                          | — |         |   | —                                |   |             | — |   |   | 12,374 |   |   | 13,211 |   |
|                                         |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| Capital                Expenditures          |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| 2008                                         |   |                              | 520     |                     |   | —                            |   |                          | — |         |   | —                                |   |             | 125     |   |   | — |   |   | 645 |   |
| 2007                                         |   |                              | 93      |                     |   | —                            |   |                          | — |         |   | —                                |   |             | — |   |   | 11 |   |   | 104 |   |
|                                         |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| Depreciation                and amortization |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| 2008                                         |   |                              | 76      |                     |   | —                            |   |                          | 28      |         |   | 27                                     |   |             | 28      |   |   | 34 |   |   | 193 |   |
| 2007                                         |   |                              | 53      |                     |   | —                            |   |                          | 5       |         |   | 5                                      |   |             | 5       |   |   | 54 |   |   | 122 |   |

----

***DGSE        COMPANIES, Inc. and        Subsidiaries***

| ***(In                thousands)***          |   | **Retail                Jewelry** |    | **Wholesale****Jewelry** |   | **Precious                Metals** |   | **Rare                Coins** |    | **Auctions** |   | **Corporate                and Other** |   | **Consolidated** |    |
|----------------------------------------------|--------|-----------------------------------|---------|--------------------------|--------|------------------------------------|--------|-------------------------------|---------|--------------|--------|----------------------------------------|--------|------------------|---------|
| Revenues                                     |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |
| 2008                                         |   | $                                 | 7,757   |                     | $      | 1,139                              |   | $                             | 10,440  |         | $      | 5,809                                  |   | $                | 661     |   | $ | 569 |   | $ | 26,375 |   |
| 2007                                         |   |                              | 4,105   |                     |   | 1,507                              |   |                          | 2,944   |         |   | 3,336                                  |   |             | 326     |   |   | 295 |   |   | 12,513 |   |
|                                         |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| Net                earnings (loss)           |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| 2008                                         |   |                              | 398     |                     |   | 14                                 |   |                          | 37      |         |   | 12                                     |   |             | 116     |   |   | (87 | ) |   | 490 |   |
| 2007                                         |   |                              | 31      |                     |   | 23                                 |   |                          | 16      |         |   | 21                                     |   |             | 147     |   |   | 40 |   |   | 278 |   |
|                                         |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| Identifiable                assets           |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| 2008                                         |   |                              | 20,478  |                     |   | 1,280                              |   |                          | 1,180   |         |   | 3,790                                  |   |             | 3,966   |   |   | 1,654 |   |   | 32,348 |   |
| 2007                                         |   |                              | 11,141  |                     |   | 1,204                              |   |                          | 344     |         |   | 3,568                                  |   |             | 941     |   |   | 984 |   |   | 18,182 |   |
|                                         |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| Goodwill                                     |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| 2008                                         |   |                              | — |                     |   | 837                                |   |                          | — |         |   | —                                |   |             | — |   |   | 8,167 |   |   | 9,014 |   |
| 2007                                         |   |                              | — |                     |   | 837                                |   |                          | — |         |   | —                                |   |             | — |   |   | 12,374 |   |   | 13,211 |   |
|                                         |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| Capital                Expenditures          |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| 2008                                         |   |                              | 248     |                     |   | —                            |   |                          | — |         |   | —                                |   |             | 111     |   |   | — |   |   | 359 |   |
| 2007                                         |   |                              | 22      |                     |   | —                            |   |                          | — |         |   | —                                |   |             | — |   |   | 8 |   |   | 30 |   |
|                                         |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| Depreciation                and amortization |   |                              |    |                     |   |                               |   |                          |    |         |   |                                   |   |             |    |   |   |   |   |   |   |   |
| 2008                                         |   |                              | 38      |                     |   | —                            |   |                          | 14      |         |   | 13                                     |   |             | 14      |   |   | 4 |   |   | 83 |   |
| 2007                                         |   |                              | 29      |                     |   | —                            |   |                          | 5       |         |   | 5                                      |   |             | 5       |   |   | 28 |   |   | 72 |   |

**(6)      Stock-based Compensation.**

----

***DGSE      COMPANIES, Inc. and      Subsidiaries***

**(7)      Acquisitions**

*Superior      Galleries, Inc. *

|                                     |   |   |      |                       |   |                          |   |
|------------------------------------------|--------|--------|-----------|----------------------------|--------|-------------------------------|--------|
|                                     |   | Shares |      | Stock                Price |   | Extended                Price |   |
| Common                stock              |   |   | 3,669,067 |                       | $      | 2.55                          |   | $ | 9,356,121 |   |
| A                warrants                |   |   | 845,634   |                       |   | 1.27(1                        | )      |   | 1,073,955 |   |
| B                warrants                |   |   | 863,000   |                       |   | 2.55                          |   |   | 2,200,650 |   |
| Exercise                Price B warrants |   |   | 863,000   |                       | $      | .001                          |   |   | (863 | ) |
| Direct                transaction costs  |   |   |      |                       |   |                          |   |   | 1,176,290 |   |
| Total                purchase price      |   |   |      |                       |   |                          |   | $ | 13,806,153 |   |

|   |   |
|--------|--------|

| (1)   | $1.27                is the fair value of the warrants calculated under the Black Sholes                method                as of the acquisition date. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| Goodwill                                 |   | $      | 8,203,448  |   |
|------------------------------------------|--------|--------|------------|--------|
| Intangible                assets         |   |   | 2,521,340  |   |
| Deferred                tax asset        |   |   | 1,860,475  |   |
| Property                and other assets |   |   | 1,068,958  |   |
| Inventory                                |   |   | 3,260,766  |   |
| Liabilities                assumed       |   |   | (3,108,834 | )      |
|                                     |   |   |            |   |
| Total                purchase price      |   | $      | 13,806,153 |   |

----

***DGSE      COMPANIES, Inc. and      Subsidiaries***

|                                                              |   | **Three                Months Ended June 30,** |   |
|-------------------------------------------------------------------|--------|------------------------------------------------|--------|
| ***(In                thousands, except per share data)***        |   | **2008**                                       |   | **2007** |   |
|                                                              |   | **(Unaudited)**                                |   |
|                                                              |   |                                           |   | (Pro                forma) |   |
| Total                revenue                                      |   | $                                              | 26,375 |   | $ | 14,857 |   |
| Net                earnings (loss)                                |   | $                                              | 490    |   | $ | (2,433 | ) |
| Net                earnings (loss) per share — basic   |   | $                                              | 0.05   |   | $ | (0.39 | ) |
| Net                earnings (loss) per share — diluted |   | $                                              | 0.05   |   | $ | (0.39 | ) |
| Weighted                average shares — basic         |   |                                           | 9,666  |   |   | 6,226 |   |
| Weighted                average shares — diluted       |   |                                           | 10,344 |   |   | 6,361 |   |

|                                                              |   | **Six                Months Ended June 30,** |   |
|-------------------------------------------------------------------|--------|----------------------------------------------|--------|
| ***(In                thousands, except per share data)***        |   | **2008**                                     |   | **2007** |   |
|                                                              |   | **(Unaudited)**                              |   |
|                                                              |   |                                         |   | (Pro                forma) |   |
| Total                revenue                                      |   | $                                            | 59,103 |   | $ | 30,700 |   |
| Net                earnings (loss)                                |   | $                                            | 967    |   | $ | (3,386 | ) |
| Net                earnings (loss) per share — basic   |   | $                                            | 0.10   |   | $ | (0.54 | ) |
| Net                earnings (loss) per share — diluted |   | $                                            | 0.09   |   | $ | (0.54 | ) |
| Weighted                average shares — basic         |   |                                         | 9,582  |   |   | 6,226 |   |
| Weighted                average shares — diluted       |   |                                         | 10,344 |   |   | 6,386 |   |

*Euless      Gold & Silver, Inc.*

----

***DGSE      COMPANIES, Inc. and      Subsidiaries***

**(8)      New Accounting Pronouncements**

**(9)**
**Recent      Developments**

**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations.**

**Forward-Looking      Statements**

----

***DGSE      COMPANIES, Inc. and      Subsidiaries***

**Our      Business**

** **

**Significant      Accounting Policies**

*Inventory.*
** **

*Accounts      Receivable.*
** **

*Auction      Advances. *

----

***DGSE      COMPANIES, Inc. and      Subsidiaries***

*Revenue      Recognition.*

*Exchanges      of Nonmonetary Assets - An Amendment of APB Opinion No. 29*

----

***DGSE      COMPANIES, Inc. and      Subsidiaries***

**Results      of Operations**

**Three      Months Ended June, 2008 compared to Three Months Ended June 30,      2007**

----

***DGSE      COMPANIES, Inc. and      Subsidiaries***

**Six      Months Ended June 30, 2008 compared to Six Months Ended June 30,      2007**

**Liquidity      and Capital Resources**

----

***DGSE      COMPANIES, Inc. and      Subsidiaries***

----

***DGSE      COMPANIES, Inc. and      Subsidiaries***

|                                                             |   |  **Payments                due by                period** |       |
|------------------------------------------------------------------|--------|----------------------------------------------------------------|------------|
| **Contractual              Cash              Obligations**  |   |  **Total **                                          |       |  **2008 ** |   |  **2009                - 2010 ** |   |  **2011                - 2012 ** |   |  **Thereafter** |   |
| Notes                payable                                |   | $                                                              | 187,463    |   | $ | 187,463 |   | $ | — |   | $ | — |   | $ | — |   |
| Long-term                debt and capital leases                 |   |                                                           | 14,426,428 |   |   | 250,816 |   |   | 4,306,121 |   |   | 7,592,048 |   |   | 2,277,443 |   |
| Federal                income taxes                         |   |                                                           | 195,469    |   |   | 195,469 |   |   | — |   |   | — |   |   | — |   |
| Operating                Leases                                  |   |                                                           | 3,331,923  |   |   | 248,418 |   |   | 950,158 |   |   | 808,828 |   |   | 103,752 |   |
| Total                                                            |   | $                                                              | 18,141,283 |   | $ | 882,166 |   | $ | 5,256,279 |   | $ | 8,400,876 |   | $ | 2,381,195 |   |

**Item      3. Quantitative and Qualitative Disclosures About Market      Risk.**

**Item      4. Controls and Procedures.**

*Evaluation      of disclosure controls and procedures*

*Changes      in internal controls.*

----

***DGSE      COMPANIES, Inc. and      Subsidiaries***

**PART      II- OTHER INFORMATION**

**Item      3. Legal Proceedings **

**Item      5. Other Information.**

----

***DGSE      COMPANIES, Inc. and      Subsidiaries***

**Item      6.**
**Exhibits      and Reports on Form 8-K.**

**Exhibits:**

|        |   |                                                                                                                                                |   |       |   |                            |   |     |   |                                |   |        |   |   |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|---------------------------------|--------|----------|--------|-------------------------------------|--------|-------------|--------|--------|
| **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    |   |
|        |   |                                                                                                                                                |   |       |   |                            |   |     |   |                                |   |        |   |   |

----

***DGSE      COMPANIES, Inc. and      Subsidiaries***

| 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    |   |
|   |   |                                                                                                                                                                                    |   |   |   |   |   |   |   |                                |   |   |   |   |

----

***DGSE      COMPANIES, Inc. and      Subsidiaries***

| 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   |   |
|   |   |                                                                                                                                                                                                                           |   |   |   |   |   |   |   |                                |   |   |   |   |

----

***DGSE      COMPANIES, Inc. and      Subsidiaries***

| 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                         |   | × |   |   |   |   |   |   |   |   |   |   |

**Reports      on Form 8-K :**

----

**SIGNATURES**

|   |                                                                                                               |   |   |                                             |
|--------|--------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------------------------------|
| By:    | /s/ L.              S.              Smith                                                                     |   |   | Dated:              August 13,              2008 |
|   | L.                S. SmithChairman                of the Board,Chief                Executive Officer andSecretary |   |   |                                                  |
|   |                                                                                                                    |   |   |                                                  |

|   |                                                                                                               |   |   |                                             |
|--------|--------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------------------------------|
| By:    | /s/ L.              S.              Smith                                                                     |   |   | Dated:              August 13,              2008 |
|   | L.                S. SmithChairman                of the Board,Chief                Executive Officer andSecretary |   |   |                                                  |
|   |                                                                                                                    |   |   |                                                  |

|   |                                                                                                                |   |   |                                                 |
|--------|---------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------|
| By:    | /s/ W.                H.                Oyster                                                                 |   |   | Dated:                August 13,                2008 |
|   | W.                    H. OysterDirector,                    President andChief                    Operating Officer |   |   |                                                      |
|   |                                                                                                                     |   |   |                                                      |

|   |                                                                                                                                  |   |   |                                                     |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------|
| By:    | /s/ John                  Benson                                                                                                 |   |   | Dated:                  August 13,                  2008 |
|   | John                        BensonChief                        Financial Officer(Principal                        Accounting Officer) |   |   |                                                          |
|   |                                                                                                                                       |   |   |                                                          |

----