U.S. Law Still May Authorize Seizure of Gold And Silver; GATA Queries Treasury

Constitution 's prohibition against the government's taking private
property for public use without paying fair compensation, precious
metals investors may still be in some jeopardy here.
The text of GATA's letter is appended.

futures currencies

The totally remodeled USBullionExchange.
Our plan is to provide our customers with a single comprehensive
location where they can research, purchase and sell and manage their
portfolio activities in precious metals.dgse. 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.

bullion cambiste

com.

Business Editors

MANCHESTER, Conn.S.S.

precious metals

(Nasdaq:DGSE), which wholesales , retails and auctions fine watches,
jewelry, diamonds and precious metal and rare coin products via
traditional and Internet channels, and offers consumer loans via pawn
stores and its' American Pay Day Centers, announced the significant
expansion of its USBullionExchange.
"We are excited to have materially expanded our online precious
metals capabilities.

GATA LETTER TO TREASURY DEPARTMENT

January 20, 2005

Roberta K. You replied that a
statute empowering the Treasury Department to do that, 12 U.

investing prospecting

USBullionExchange. 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.C.

metals investing

This press release includes statements that may constitute
"forward-looking" statements, usually containing the words, "believe",
"estimate", "project", "expect" or similar expressions. McInerney:

Michael Kirk of U.

currencies leverage

FairchildWatches.----Despite recent
assurances to the contrary from the U.S. So GATA has
written to the Treasury Department seeking clarification and a meeting
with department officials .C. So the Gold Anti-Trust
Action Committee urgently requests that the Treasury Department
explain how it construes these provisions.

numismatics currencies

S. But since such organizations do no
advocacy of precious metals when governments may get in the way, and
little advocacy in any case, this work has fallen to GATA . citizens are asked to share
the letter with their congressmen and the mining companies in which
they are invested and to ask the congressmen and mining companies to
get involved with the issues the letter raises.

numismatics assured

.

Sincerely,

Chris Powell, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

numismatics medallions

DGSE Companies Inc. Announces Significant Expansion of Its USBullionExchange.com Website; Retail Customers Now Have Real-Time Online Precious Metals Trading A

Real-time
price quotations on precious metals products and full service customer
accounts in commonly traded precious metals are provided on another
DGSE web site at www.. citizens of any property "in which a foreign country or
a national thereof has any interest. citizens, businesses,
and corporations, absent any collaboration with enemies of the
United States?

Does the Treasury Department construe Section 95a to empower
the president to interfere with the ownership of shares in
gold and silver mining companies merely because shares of such
companies also might be owned by foreign nationals or foreign
governments, at war with the United States or not? Under what
circumstances would the president be so empowered?

In essence, we need to know whether Section 95a contemplates the
instant destruction of gold and silver investors and the precious
metals mining industry in the United States.

iridium gaudens

com precious metals trading
activities .

medallions 999

Business Editors

DALLAS----DGSE Companies, Inc.
Protecting precious metals investors and the mining industry
against threats like this would seem to come within the province of
gold industry organizations. McInerney
Assistant General Counsel/Banking and Finance
Department of the Treasury
Washington, D.

But since reading your letter I have learned of a similar statute:
Title 12, Chapter 2, Subchapter IV, Section 95a, which provides in
part:

"During the time of war, the president may, through any agency
that he may designate, and under such rules and regulations as he may
prescribe, by means of instructions, licenses, or otherwise -- (A)
investigate, regulate , or prohibit, any transactions in foreign
exchange, transfers of credit or payments between, by, through, or to
any banking institution, and the importing, exporting, hoarding,
melting, or earmarking of gold or silver coin or bullion, currency or
securities.

999 numismatics

John B..

assured iridium

"This enhancement is just the beginning of the
functionality envisioned for our precious metals customers.com.S.

numismatics palladium

So the Gold Anti -Trust
Action Committee asks the Treasury Department for a meeting with the
officials who might become responsible for implementing Section 95a,
at which we might discuss the concerns of precious metals investors
and mining companies. Would you kindly forward our request to the
appropriate people?

Thanks for your help.

leverage 999

Wholesale customers can
access our full vintage watch inventory through the restricted site at
www."

Section 95a further authorizes the president to "prevent " the
"use" by U.

anonymously commodities

com
The company is headquartered in Dallas, Texas and its common stock
trades on THE NASDAQ STOCK MARKET under the symbol "DGSE".
The Treasury Department is not likely to respond to GATA's letter
without some prodding from the congressmen who represent metals
investors and mining companies, so U. Rep.
Section 248(n), had been repealed.

financed bullion

Oyster, President and Chief Operating Officer of
DGSE Companies, Inc. DGSE also owns Fairchild International, one of the largest
vintage watch wholesalers in the country. These
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Larson's office has forwarded to
me your letter to him of December 17, which answered my e-mailed
inquiry to him about forcible redemption by the Treasury Department of
gold and silver coins held by private citizens.

matthey anonymously

monex currencies

In the
near term we expect to add precious metals storage at independent
third party facilities as well as a host of other valuable services.

rhodium palladium

The newly redesigned
functionality allows our customers to fix prices in real-time and to
manage their precious metals portfolios in a comprehensive way,"
stated William H."
DGSE Companies, Inc. law
still appears to empower the president to seize gold and silver coins ,
bullion, and shares in mining companies from private citizens, the
Gold Anti-Trust Action Committee says.S."

These provisions are of the greatest concern to investors in gold
and silver bullion , coins, and shares of gold and silver mining
companies, and to those companies themselves.

financed monex

wholesales and retails jewelry, diamonds,
fine watches and precious metal bullion and rare coin products to
domestic and international customers via traditional and Internet
channels. Forward-looking
statements inherently involve risks and uncertainties that could cause
actual results to differ materially from the forward-looking
statements.

While GATA believes that the law may violate the U .S.

currencies ruthenium

In addition to its retail
and consumer loan facilities, the Company operates live proprietary
Internet auctions in jewelry, rare coins, fine watches and a full
catalogue of jewelry products at its website www.S. 20220

Dear Ms.

numismatics metals

com
website was developed entirely by our internal staff and for the first
time allows our customers to enter immediate real-time buy and sell
orders in dozens of precious metals products. Particularly, we'd like to
know:

How does the Treasury Department construe "the time of war"?
How can gold and silver investors know when the powers
described in Section 95a are in operation or likely to come
into operation? Are formal declarations of war by Congress
required here, or lesser declarations, or none at all, but
rather declarations made only by the president?

How does the Treasury Department construe "hoarding"? Does it
include the ordinary collection of gold and silver coins,
numismatic or not, and bullion by U.

monex matthey

Treasury Department, U.