My local LCS and 'ordering junk silver'

[Catfish4u]

I called my LCS today and asked if they had any 'junk silver'. He said 'hold on let me go look'. A minute later he came back and said they were out - they sent $4,000 face a few days ago to get melted down.

I asked how busy they were or how long it would take for them to get some back in. He stated he could order as much as I wanted and lock in current prices but I would need to pay up front. I seriously thought about it but did not want to leave a few thousand dollars at a business without any assurances they would be there tomorrow or next week to deliver my silver. I have been buying from them for a few months and getting 40% at about coinflation melt prices. I am not sure how long they have been in business. Am I being too paranoid?

[Engineer]

I see two different scenarios:

He's low on cash and would need the money to get the silver in, or he could be afraid you'll back out on the buy if prices drop. You might be able to work out a deal with 50% up front, or you could offer coinflation melt for 40% here.