DGSE Companies, Inc. Announces Launch of DGSE Treasure Hunt
DGSE Companies, Inc. (AMEX: DGC), which wholesales, retails and auctions fine watches, jewelry, diamonds and precious metal and rare coin products via traditional and Internet channels, today announced that it has launched the first direct to the public website for jewelry and precious metals products acquired directly from consumers. DGSE is one of the largest purchasers of jewelry in direct transactions with the public with transactions for 2008 expected to exceed $50 million. For the first time DGSE, in real time, will offer these products as it buys them directly to the public for 36 hours. If the items are not sold they will be melted or disposed of for their scrap value. Products are offered based on their precious metals and other content at small premiums from the scrap value without conventional retail mark-ups. In many instances these prices will be lower than dealers can acquire them. Initially the “Treasure Hunt” will be an integrated component on the www.DGSE.com website and will show 150 items in a constant countdown to disposal. New items will be added each day to replace those that expire. All participants have to do is register and click on the Green Treasure Hunt symbol on the www.DGSE.com homepage to see every item available and to see new items as they are added. Over time the site will be significantly expanded to reflect DGSE’s continuous buying activities through all of its operations.
“The ‘Treasure Hunt’ has been a complicated project because of the velocity of our transactions. We have built the robust infrastructure necessary to process hundreds of real time purchases every day. Our objective is offer the public a unique opportunity to acquire jewelry and other products that they would not find anywhere else at huge discounts,” noted William H. Oyster, President and Chief Operating Officer of DGSE Companies, Inc. Mr. Oyster continued, “Because we are one of the largest jewelry buyers in the United States, we see things in the market that few jewelers and consumers can find and we know that every item has sold at least once before at a price significantly higher than our offering price. In the past, all items that were not immediate candidates for our jewelry operations were sent directly to refiners and melted for their content values. So many wonderful pieces were disposed of in that fashion, that we decided to allow the public to interrupt the flow to our refiners. We are confident that over time the consumers will find the opportunity exciting and rewarding.”
DGSE Companies, Inc. wholesales, retails and auctions jewelry, diamonds, fine watches, and precious metal bullion and rare coins products to domestic and international customers through its Dallas Gold and Silver Exchange, Charleston Gold and Diamond Exchange, Superior Galleries and National Jewelry Exchange subsidiaries as well as through the internet. DGSE also owns Fairchild International, Inc., one of the largest vintage watch wholesalers in the country. In addition to its retail facilities in Dallas and Euless, Texas, Charleston, South Carolina and Beverly Hills, California, the Company operates live Internet auctions which can be accessed at www.dgse.com and through Superior Galleries’ website at www.sgbh.com. Real-time price quotations and real-time order execution in 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. DGSE also purchases precious metals, rare coins, watches, diamonds and jewelry through www.Americangoldandsilverexchange.com and over 900 supporting websites. The Company also makes collateralized consumer loans at its two Dallas locations.
The Company is headquartered in Dallas, Texas and its common stock trades on The American Stock Exchange under the symbol “DGC.”
This press release includes statements which 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. In addition to the results presented in accordance with Generally Accepted Accounting Principles throughout this press release, DGSE has presented non-GAAP financial measures such as EBITDA. The Company believes that these non-GAAP measures, viewed in addition to and not in lieu of the Company’s reported GAAP results, provide useful information to investors because they are an integral part of the Company’s internal evaluation of operating performance. In addition, they are measures that DGSE uses to evaluate management’s effectiveness. DGSE’s non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies.