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Related party transactions
9 Months Ended
Sep. 30, 2011
Related Party Transactions [Abstract] 
Related Party Transactions Disclosure [Text Block]
(6)
Related party transactions.
 
The Company purchases and sells a substantial portion of precious metal and bullion to NTR Metals.  During 2010, NTR Metals, pursuant to the partial assignment of the Company’s rights as a Buyer to NTR under the Company-SIBL Purchase Agreement, became a major stockholder of the Company.  During the nine months ended September 30, 2011, the Company sold approximately $38.5 million of precious metals and bullion to NTR Metals.  During the nine months ended September 30, 2011, the Company purchased approximately $20.9 million in precious metal and bullion from NTR Metals to fulfill customer orders.  As of September 30, 2011, the Company’s was obligated to pay $2,476,000 to NTR Metals.
 
On May 16, 2011, the Company issued 125,000 shares of common stock to NTR Metals, LLC to settle $511,207 of outstanding obligations resulting from the purchase bullion.
 
On September, 2011, the Company announced that it had completed its acquisition of 100 percent of Southern Bullion Trading, LLC (SBT). A subsidiary of our refining partner NTR Metals, LLC was the majority owner of SBT. Under the terms of the acquisition, DGSE acquired SBT for 600,000 shares of restricted DGSE common stock.  In connection with this transaction, NTR Metals made an equity investment in DGSE of $2 million dollars and received 400,000 DGSE restricted common shares. The proceeds of this financing will be dedicated to SBT’s operations and future expansion.
 
In connection with the Stanford Bank settlement, NTR Metals, LLC entered into an option contract with the Company’s Chief Executive Officer, Chairman of the Board and primary shareholder to purchase 1,000,000 common shares at an exercise price of $6.00 per common share until May 25, 2014. The original terms of the option contract required NTR Metals, LLC to exercise the option in its entirety.  On June 10, 2011, the terms of the option contract were modified to allow NTR Metals, LLC to exercise the option contract in increments of 100,000 shares from June 10, 2011 to July 15, 2011. The option contract was subsequently modified to extend the incremental exercise option to August 15, 2011.  NTR Metals, LLC has exercised its options to purchase 200,000 shares of the Company’s common stock.  NTR Metals, LLC has notified the Company’s chairman of its intention, subject to continued and ongoing negotiation of final terms, to exercise its remaining options.