far more daily volume are done privately than on bitstampt/btc-e, etc combined. and while the crappy exchanges are falling whilst they play with satoshi dust amounts of $5, the localbitcoins/otc trades are healthily $450-$550
I wish I could sell a bitcoin locally for $550
Have you tried? I know a guy who is currently selling in that price range on LBC. He is reliable, well trusted and comes to your location. I used to be his supplier of freshly of mined coins, but I am no longer selling (I have electricity and hosting costs covered for the next 12 months so I don't need the fiat). He has offered to buy from me above BitStamp and BitFINEX prices.