Firsthand Account: Investment Grade Silver Shortage Developing in China

We have well documented over the past few months the unprecedented flows of physical gold and silver being drained out of Western vaults and shipped East.
SD reader Ji Hai Shan, an American currently residing in China, has provided a boots-on-the-ground first-hand account which substantiates our recent claims that spiking silver premiums on the Shanghai Gold Exchange indicate a shortage of the physical metal in China.

“3 months ago, when I inquired about buying some more bars, they said that I would have to wait a month.
So, yesterday, I stopped by the shop and was told again that I would have to wait a month. 
The affordable investment grade bars are in shortage.”
Ji Hai Shan’s first-hand account of the developing shortage of investment grade silver in China is below:

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I am an American living and working in Hubei Province China. I have been buying silver here in China and have been watching the physical market for investment bars (LBMA stamped on the bars). When I started buying bars here, there were still bars available and more could be obtained within 2 days. Then, about 3 months ago, when I inquired about buying some more bars, they said that I would have to wait a month.
So, yesterday, I stopped by the shop and was told again that I would have to wait a month. Where is all of the investment grade silver going? The reports are saying that so much silver and gold are coming over here to China.
The affordable investment grade bars are in shortage. However, there are supplies of ornately minted coins and bars with various artistic designs on them. However, there are very high premiums on these products. So, due to the long wait, high premiums as well as administrative hurdles involved in getting my Chinese bullion out of here, I’ve just been sending my money home and have been buying silver in the US. What I see is that there are available supplies in the US, I don’t have to wait long to take delivery and on the whole, it seems like I am getting a lot more bang for my buck, buying silver back in the US, (Maple Leafs, Silver Eagles and rounds).
In summary, I’d really like to know where are of the silver is going? What is the physical shortage being caused by? Are the Asians shorting physical back somewhere else? 
I just want to let you know these details based on my boots on the ground findings.
Keep up the good work.
AS Chichura