It appears that the purpose of listing one chip, but selling 5, is to avoid ebay fees.

Note also that he states that insurance is not available. I can't quite figure that one out.

I'm not sure on this, but isn't Fed Ex next day only $13-$14? I've heard of Fed Ex 2nd day, but what the hell good is Fed Ex 3rd day delivery (especially at $12).

Priority Mail ($3.85) delivers by the 3rd day (and sometimes even overnite).

Not much in that auction should make a bidder feel comfortable.