DGSE Companies, Inc. Chosen to Liquidate Rare Carson City Silver Dollar

Market Wire, October, 2004

DGSE COMPANIES, Inc. (NASDAQ: DGSE), which wholesales, retails and auctions fine watches, jewelry, diamonds, precious metals and rare coin products via traditional and Internet channels, and offers consumer loans via pawn stores and soon to be opened Pay Day Loan stores, announced that it has been selected by a private holder to liquidate an extremely rare Carson City Silver Dollar.

This 1893 Silver Dollar is one of only twelve (12) known Carson City Branch Mint Proof Dollars. It is one of the finest specimens known to exist. It has been examined and graded by Numismatic Guaranty Corporation (NGC) as a Proof 65 with star designation indicating its incredible eye appeal.

Potential buyers may view the coin at www.dgse.com, and will be impressed by the dark smoky-gold, almost chocolate toning on the flat fields with a frosty auburn-gold Liberty, Eagle, wreath and lettering. There are no spots or detracting marks of any kind. This is a rare opportunity for the discriminating investor to own one of the finest known specimens. Only two (2) examples have been graded higher by NGC.

DGSE Companies, Inc. wholesales and retails jewelry, diamonds, fine watches, precious metal bullion and rare coin products to domestic and international customers via traditional and Internet channel. DGSE also owns Fairchild International, Inc., one of the largest vintage watch wholesalers in the country. In addition to its retail facilities, the Company operates live Internet auctions that can be accessed at www.dgse.com. Real-time price quotations on over 250 precious metals are provided on another DGSE web site at www.USBullionExchange.com. Wholesale customers can access our full vintage watch inventory through the restricted site at www.FairchildWatches.com.

The Company is headquartered in Dallas, Texas and its common stock trades on The NASDAQ Stock Market under the symbol "DGSE."

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

For further information, please contact: William H. Oyster President and COO DGSE (800) 527-5307