10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended March 31, 2017

☐	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from ________ to ________

Commission file number: 001-32863
 

iShares® Silver Trust

(Exact name of registrant as specified in its charter) 

New York	13-7474456
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

c/o iShares Delaware Trust Sponsor LLC

400 Howard Street

San Francisco, California 94105

Attn: Product Management Team

iShares Product Research & Development

(Address of principal executive offices)

(415) 670-2000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer   ☒	Accelerated filer   ☐
Non-accelerated filer   ☐	Smaller reporting company   ☐
(Do not check if a smaller reporting company)

Emerging growth company   ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
   

Table of Contents

PART I – FINANCIAL INFORMATION		Page
Item 1.	Financial Statements (Unaudited)	1
	Statements of Assets and Liabilities at March 31, 2017 and December 31, 2016	1
	Statements of Operations for the three months ended March 31, 2017 and 2016	2
	Statements of Changes in Net Assets for the three months ended March 31, 2017 and the year ended December 31, 2016	3
	Statements of Cash Flows for the three months ended March 31, 2017 and 2016	4
	Schedules of Investments at March 31, 2017 and December 31, 2016	5
	Notes to Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	10
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	11
Item 4.	Controls and Procedures	11
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	12
Item 1A.	Risk Factors	12
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	12
Item 3.	Defaults Upon Senior Securities	12
Item 4.	Mine Safety Disclosures	12
Item 5.	Other Information	12
Item 6.	Exhibits	13
SIGNATURES		14

PART 1 – FINANCIAL INFORMATION

Item 1. Financial Statements

iShares Silver Trust

Statements of Assets and Liabilities (Unaudited)

At March 31, 2017 and December 31, 2016

	March 31,		December 31,
	2017		2016
Assets
Investment in silver bullion, at fair value(a)	$	5,965,691,104	$	5,543,495,441
Total Assets		5,965,691,104		5,543,495,441
Liabilities
Sponsor’s fees payable		2,473,895		2,364,798
Total Liabilities		2,473,895		2,364,798
Commitments and contingent liabilities (Note 6)		—		—
Net Assets	$	5,963,217,209	$	5,541,130,643
Shares issued and outstanding(b)		348,700,000		359,900,000
Net asset value per Share (Note 2C)	$	17.10	$	15.40

 

(a)	Cost of investment in silver bullion: $6,097,115,732 and $6,305,715,839, respectively.
(b)	No par value, unlimited amount authorized.

See notes to financial statements.

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iShares Silver Trust

Statements of Operations (Unaudited)

For the three months ended March 31, 2017 and 2016

	Three Months Ended March 31,
	2017			2016
Expenses
Sponsor’s fees	$	7,165,596		$	5,844,914
Total expenses		7,165,596			5,844,914
Net investment loss		(7,165,596	)		(5,845,914	)
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Silver bullion sold to pay expenses		(510,077	)		(1,703,192	)
Silver bullion distributed for the redemption of Shares		(15,533,659	)		(51,397,205	)
Net realized loss		(16,043,736	)		(53,100,397	)
Net change in unrealized appreciation/depreciation		630,795,770			540,719,490
Net realized and unrealized gain (loss)		614,752,034			487,619,093
Net increase in net assets resulting from operations	$	607,586,438		$	481,774,179
Net increase in net assets per Share	$	1.72		$	1.45

See notes to financial statements.

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iShares Silver Trust

Statements of Changes in Net Assets (Unaudited)

For the three months ended March 31, 2017 and the year ended December 31, 2016

	Three Months Ended			Year Ended
	March 31, 2017			December 31, 2016
Net Assets, Beginning of Period	$	5,541,130,643		$	4,391,943,604
Operations:
Net investment loss		(7,165,596	)		(29,148,568	)
Net realized loss		(16,043,736	)		(111,239,707	)
Net change in unrealized appreciation/depreciation		630,795,770			823,171,043
Net increase in net assets resulting from operations		607,586,438			682,782,768
Capital Share Transactions:
Contributions for Shares issued		84,171,380			1,702,628,324
Distributions for Shares redeemed		(269,671,252	)		(1,236,224,053	)
Net increase (decrease) in net assets from capital share transactions		(185,499,872	)		466,404,271
Increase in net assets		422,086,566			1,149,187,039
Net Assets, End of Period	$	5,963,217,209		$	5,541,130,643
Shares issued and redeemed
Shares issued		5,100,000			102,750,000
Shares redeemed		(16,300,000	)		(76,400,000	)
Net increase (decrease) in Shares issued and outstanding		(11,200,000	)		26,350,000

See notes to financial statements.

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iShares Silver Trust

Statements of Cash Flows (Unaudited)

For the three months ended March 31, 2017 and 2016

	Three Months Ended March 31,
	2017			2016
Cash Flows from Operating Activities
Proceeds from silver bullion sold to pay expenses	$	7,056,499		$	5,638,637
Expenses – Sponsor’s fees paid		(7,056,499	)		(5,638,637	)
Net cash provided by operating activities		—			—
Increase (decrease) in cash		—			—
Cash, beginning of period		—			—
Cash, end of period	$	—		$	—
Reconciliation of Net Increase in Net Assets Resulting from Operations to Net Cash Provided by (Used in) Operating Activities
Net increase in net assets resulting from operations	$	607,586,438		$	481,774,179
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Proceeds from silver bullion sold to pay expenses		7,056,499			5,638,637
Net realized (gain) loss		16,043,736			53,100,397
Net change in unrealized appreciation/depreciation		(630,795,770	)		(540,719,490	)
Change in operating assets and liabilities:
Sponsor’s fees payable		109,097			206,277
Net cash provided by (used in) operating activities	$	—		$	—
Supplemental disclosure of non-cash information:
Silver bullion contributed for Shares issued	$	84,171,380		$	412,201,487
Silver bullion distributed for Shares redeemed	$	(269,671,252	)	$	(172,985,000	)

See notes to financial statements.

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iShares Silver Trust

Schedules of Investments (Unaudited)

At March 31, 2017 and December 31, 2016

March 31, 2017

Description	Ounces		Cost		Fair Value
Silver bullion		330,326,197	$	6,097,115,732	$	5,965,691,104
Total Investment – 100.04%						5,965,691,104
Less Liabilities – (0.04)%						(2,473,895	)
Net Assets – 100.00%					$	5,963,217,209

December 31, 2016

Description	Ounces		Cost		Fair Value
Silver bullion		341,348,242	$	6,305,715,839	$	5,543,495,441
Total Investment – 100.04%						5,543,495,441
Less Liabilities – (0.04)%						(2,364,798	)
Net Assets – 100.00%					$	5,541,130,643

See notes to financial statements.

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iShares Silver Trust

Notes to Financial Statements (Unaudited)

March 31, 2017

1 - Organization

The iShares Silver Trust (the “Trust”) was organized on April 21, 2006 as a New York trust. The trustee is The Bank of New York Mellon (the “Trustee”), which is responsible for the day-to-day administration of the Trust. The Trust’s sponsor is iShares Delaware Trust Sponsor LLC, a Delaware limited liability company (the “Sponsor”). The Trust is governed by the provisions of the Second Amended and Restated Depositary Trust Agreement (the “Trust Agreement”) executed by the Trustee and the Sponsor on December 22, 2016. The Trust issues units of beneficial interest (“Shares”) representing fractional undivided beneficial interests in its net assets.

The Trust seeks to reflect generally the performance of the price of silver. The Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities. The Trust is designed to provide a vehicle for investors to make an investment similar to an investment in silver.

The accompanying unaudited financial statements were prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). In the opinion of management, all material adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of the interim period financial statements have been made. Interim period results are not necessarily indicative of results for a full-year period. These financial statements and the notes thereto should be read in conjunction with the Trust’s financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC on February 24, 2017.

The Trust qualified as an investment company solely for accounting purposes and not for any other purpose and follows the accounting and reporting guidance under the Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services - Investment Companies, but is not registered and is not required to be registered, as an investment company under the Investment Company Act of 1940, as amended.

2 - Significant Accounting Policies

A. Basis of Accounting

The following significant accounting policies are consistently followed by the Trust in the preparation of its financial statements in conformity with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Certain statements and captions in the financial statements for the prior years have been changed to conform to the current financial statement presentation.

B. Silver Bullion

JPMorgan Chase Bank N.A., London branch (the “Custodian”), is responsible for the safekeeping of silver bullion owned by the Trust.

Fair value of the silver bullion is based on the price per ounce of silver determined by the CME Group Inc. at approximately 12:00 p.m. (London time) and announced by Thomson Reuters shortly thereafter on each day that the London silver market is open for business (“LBMA Silver Price”).  

Gain or loss on sales of silver bullion is calculated on a trade date basis using the average cost method.

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The following tables summarize activity in silver bullion for the three months ended March 31, 2017 and 2016:

Three Months Ended March 31, 2017	Ounces			Average Cost			Fair Value			Realized Gain (Loss)
Beginning balance		341,348,242		$	6,305,715,839		$	5,543,495,441		$	—
Silver bullion contributed		4,830,754			84,171,380			84,171,380			—
Silver bullion distributed		(15,443,140	)		(285,204,911	)		(269,671,252	)		(15,533,659	)
Silver bullion sold to pay expenses		(409,659	)		(7,566,576	)		(7,056,499	)		(510,077	)
Net realized loss		—			—			(16,043,736	)		—
Net change in unrealized appreciation/depreciation		—			—			630,795,770			—
Ending balance		330,326,197		$	6,097,115,732		$	5,965,691,104		$	(16,043,736	)

Three Months Ended March 31, 2016	Ounces			Average Cost			Fair Value			Realized Gain (Loss)
Beginning balance		317,934,907		$	5,979,251,955		$	4,393,860,514		$	—
Silver bullion contributed		26,987,106			412,201,487			412,201,487			—
Silver bullion distributed		(11,952,590	)		(224,382,205	)		(172,985,000	)		(51,397,205	)
Silver bullion sold to pay expenses		(390,915	)		(7,341,829	)		(5,638,637	)		(1,703,192	)
Net realized loss		—			—			(53,100,397	)		—
Net change in unrealized appreciation/depreciation		—			—			540,719,490			—
Ending balance		332,578,508		$	6,159,729,408		$	5,115,057,457		$	(53,100,397	)

C. Calculation of Net Asset Value

On each business day, as soon as practicable after 4:00 p.m. (New York time), the net asset value of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the fair value of the silver and other assets held by the Trust. The Trustee computes the net asset value per Share (“NAV”) by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made.

D. Offering of the Shares

Trust Shares are issued and redeemed continuously in aggregations of 50,000 Shares in exchange for silver bullion rather than cash. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. The Trust only transacts with registered broker-dealers that are eligible to settle securities transactions through the book-entry facilities of the Depository Trust Company and that have entered into a contractual arrangement with the Trust and the Sponsor governing, among other matters, the creation and redemption of Shares (such broker-dealers, the “Authorized Participants”). Holders of Shares of the Trust may redeem their Shares at any time acting through an Authorized Participant and in the prescribed aggregations of 50,000 Shares; provided, that redemptions of Shares may be suspended during any period while regular trading on NYSE Arca, Inc. (“NYSE Arca”) is suspended or restricted, or in which an emergency exists as a result of which delivery, disposal or evaluation of silver is not reasonably practicable.

The per Share amount of silver exchanged for a purchase or redemption represents the per Share amount of silver held by the Trust, after giving effect to its liabilities. The Trustee calculates the silver amount in respect of any liabilities of the Trust daily using the LBMA Silver Price.

When silver bullion is exchanged in settlement of a redemption, it is considered a sale of silver bullion for accounting purposes.

E. Federal Income Taxes

The Trust is treated as a grantor trust for federal income tax purposes and, therefore, no provision for federal income taxes is required. Any interest, expenses, gains and losses are passed through to the holders of Shares of the Trust.

The Sponsor has reviewed the tax positions as of March 31, 2017 and has determined that no provision for income tax is required in the Trust’s financial statements.

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3 - Trust Expenses

The Trust pays to the Sponsor a Sponsor’s fee that accrues daily at an annualized rate equal to 0.50% of the net asset value of the Trust, paid monthly in arrears. The Sponsor has agreed to assume the following administrative and marketing expenses incurred by the Trust: the Trustee’s fee, the Custodian’s fee, NYSE Arca listing fees, SEC registration fees, printing and mailing costs, audit fees and expenses, and up to $100,000 per annum in legal fees and expenses.

4 - Related Parties

The Sponsor and the Trustee are considered to be related parties to the Trust. The Trustee’s fee is paid by the Sponsor and is not a separate expense of the Trust.

5 - Indemnification

The Trust Agreement provides that the Sponsor and its shareholders, directors, officers, employees, affiliates (as such term is defined under the Securities Act of 1933, as amended) and subsidiaries shall be indemnified from the Trust and held harmless against any loss, liability, or expense arising out of or in connection with the performance of their obligations under the Trust Agreement or any actions taken in accordance with the provisions of the Trust Agreement and incurred without their (1) negligence, bad faith or willful misconduct or (2) reckless disregard of their obligations and duties under the Trust Agreement.

The Trust has agreed to indemnify the Custodian for any loss incurred in connection with the custodian agreement, other than losses due to the Custodian’s negligence, fraud or willful default.

6 - Commitments and Contingent Liabilities

In the normal course of business, the Trust may enter into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred.

7 - Concentration Risk

Substantially all of the Trust’s assets are holdings of silver bullion, which creates a concentration risk associated with fluctuations in the price of silver. Accordingly, a decline in the price of silver will have an adverse effect on the value of the Shares of the Trust. Factors that may have the effect of causing a decline in the price of silver include a change in economic conditions (such as a recession), an increase in the hedging activities of silver producers, and changes in the attitude of speculators, investors and other market participants towards silver.

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8 - Financial Highlights

The following financial highlights relate to investment performance and operations for a Share outstanding for the three months ended March 31, 2017 and 2016.

	Three Months Ended
	March 31,
	2017			2016
Net asset value per Share, beginning of period	$	15.40		$	13.17
Net investment loss(a)		(0.02	)		(0.02	)
Net realized and unrealized gain(b)		1.72			1.49
Net increase in net assets from operations		1.70			1.47
Net asset value per Share, end of period	$	17.10		$	14.64
Total return, at net asset value(c)(d)		11.04	%		11.16	%
Ratio to average net assets:
Net investment loss(e)		(0.50	)%		(0.50	)%
Expenses(e)		0.50	%		0.50	%

(a) Based on average Shares outstanding during the period.

(b) The amounts reported for a Share outstanding may not accord with the change in aggregate gains and losses on investment for the period due to the timing of Trust Share transactions in relation to the fluctuating fair values of the Trust’s underlying investment.

(c) Based on the change in net asset value of a Share during the period.

(d) Percentage is not annualized.

(e) Percentage is annualized.

9 - Investment Valuation

U.S. GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trust’s policy is to value its investment at fair value.

Various inputs are used in determining the fair value of assets and liabilities. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows:

Level 1 –  Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 –  Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and

Level 3 –  Unobservable inputs that are unobservable for the asset or liability, including the Trust’s assumptions used in determining the fair value of investments.

At March 31, 2017 and December 31, 2016, the value of the silver bullion held by the Trust is categorized as Level 1.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This information should be read in conjunction with the financial statements and notes to financial statements included in Item 1 of Part I of this Form 10‑Q. The discussion and analysis that follows may contain statements that relate to future events or future performance. In some cases, such forward‑looking statements can be identified by terminology such as “may,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or the negative of these terms or other comparable terminology. Except as required by applicable disclosure laws, neither the Sponsor, nor any other person assumes responsibility for the accuracy or completeness of any forward-looking statements. Neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements to conform such statements to actual results or to a change in the Sponsor’s expectations or predictions.

Introduction

The iShares Silver Trust (the “Trust”) is a grantor trust formed under the laws of the State of New York. The Trust does not have any officers, directors, or employees, and is administered by The Bank of New York Mellon (the “Trustee”) acting as trustee pursuant to the Second Amended and Restated Depositary Trust Agreement (the “Trust Agreement”) between the Trustee and iSharesDelaware Trust Sponsor LLC, the sponsor of the Trust (the “Sponsor”). The Trust issues units of beneficial interest (“Shares”) representing fractional undivided beneficial interests in its net assets. The assets of the Trust consist primarily of silver bullion held by a custodian as an agent of the Trust responsible only to the Trustee.

The Trust is a passive investment vehicle and the objective of the Trust is for the value of each Share to approximately reflect the price of silver. The Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities. The Trust does not engage in any activities designed to obtain a profit from, or ameliorate losses caused by, changes in the price of silver.

The Trust issues and redeems Shares only in exchange for silver, only in aggregations of 50,000 Shares or integral multiples thereof (each, a “Basket”), and only in transactions with registered broker-dealers that have previously entered into an agreement with the Trust governing the terms and conditions of such issuance (such broker-dealers, the “Authorized Participants”). A list of current Authorized Participants is available from the Sponsor or the Trustee.

Shares of the Trust trade on NYSE Arca, Inc. under the symbol SLV.

Valuation of Silver; Computation of Net Asset Value

On each business day, as soon as practicable after 4:00 p.m. (New York time), the Trustee evaluates the silver held by the Trust and determines the net asset value of the Trust and NAV. The Trustee values the silver held by the Trust using the price per ounce of silver determined by the CME Group Inc. at approximately 12:00 p.m. (London time) and announced by Thomson Reuters shortly thereafter on each day that the London silver market is open for business (“LBMA Silver Price”). Having valued the silver held by the Trust, the Trustee adds other assets of the Trust then subtracts all accrued fees, expenses and other liabilities of the Trust. The result is the net asset value of the Trust. The Trustee computes the NAV by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made.

Liquidity

The Trust is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to its liquidity needs. In exchange for a fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only ordinary expense of the Trust during the period covered by this report was the Sponsor’s fee. The Trust’s only source of liquidity is its sales of silver.

Critical Accounting Policies

The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations. These estimates and assumptions affect the Trust’s application of accounting policies. Below, the Trust describes the valuation of silver bullion, a critical accounting policy that the Trust believes is important to understanding its results of operations and financial position. In addition, please refer to Note 2 to the financial statements included in this report for further discussion of the Trust’s accounting policies.

Valuation of Silver Bullion

Fair value of the silver bullion is based on the LBMA Silver Price.

There are other indicators of the value of silver bullion that are available that could be different than that chosen by the Trust. The LBMA Silver Price is used by the Trust because it is commonly used by the U.S. silver market as an indicator of the value of silver and is permitted to be used under the Trust Agreement. The use of an indicator of the value of silver bullion other than the LBMA Silver Price could result in materially different fair value pricing of the silver in the Trust, and as such, could result in different lower of cost or market adjustments or in different redemption value adjustments of the outstanding redeemable capital Shares.

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Results of Operations

The Quarter Ended March 31, 2017

The Trust’s net asset value grew from $5,541,130,643 at December 31, 2016 to $5,963,217,209 at March 31, 2017, a 7.62% increase. The increase in the Trust’s net asset value resulted primarily from an increase in the price of silver, which rose from $16.24 at December 31, 2016 to $18.06 (the LBMA Silver Price) at March 31, 2017. The increase in the Trust’s net asset value was partially offset by a decrease in outstanding Shares, which fell from 359,900,000 Shares at December 31, 2016 to 348,700,000 Shares at March 31, 2017, a consequence of 5,100,000 Shares (102 Baskets) being created and 16,300,000 Shares (326 Baskets) being redeemed during the quarter.

The 11.04% increase in the Trust’s NAV from $15.40 at December 31, 2016 to $17.10 at March 31, 2017 is directly related to the 11.21% increase in the price of silver.

The Trust’s NAV increased slightly less than the price of silver on a percentage basis due to the Sponsor’s fees, which were $7,165,596 for the quarter, or 0.12% of the Trust’s average weighted assets of $5,816,869,545 during the quarter. The NAV of $17.37 on February 27, 2017 was the highest during the quarter, compared with a low during the quarter of $15.12 on January 3, 2017.

Net increase in net assets resulting from operations for the quarter ended March 31, 2017 was $607,586,438, resulting from an unrealized gain on investment in silver bullion of $630,795,770, offset by a net investment loss of $7,165,596, a net realized loss of $510,077 from silver sold to pay expenses and a net realized loss of $15,533,659 on silver bullion distributed for the redemption of Shares. Other than the Sponsor’s fees of $7,165,596, the Trust had no expenses during the quarter.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

The duly authorized officers of the Sponsor performing functions equivalent to those a principal executive officer and principal financial officer of the Trust would perform if the Trust had any officers, with the participation of the Trustee, have evaluated the effectiveness of the Trust’s disclosure controls and procedures, and have concluded that the disclosure controls and procedures of the Trust were effective as of the end of the period covered by this report to provide reasonable assurance that information required to be disclosed in the reports that the Trust files or submits under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported, within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to the duly authorized officers of the Sponsor performing functions equivalent to those a principal executive officer and principal financial officer of the Trust would perform if the Trust had any officers, as appropriate to allow timely decisions regarding required disclosure.

There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures.

There were no changes in the Trust’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Trust’s internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

There have been no material changes to the Risk Factors last reported under Part I, Item 1A of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission on February 24, 2017.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

a) None.

b) Not applicable.

c) 16,300,000 Shares (326 Baskets) were redeemed during the quarter ended March 31, 2017.

Period	Total Number of Shares Redeemed		Average Ounces of Silver Paid Per Share
01/01/17 to 01/31/17		7,500,000	$	0.9478
02/01/17 to 02/28/17		—		—
03/01/17 to 03/31/17		8,800,000		0.9471
Total		16,300,000	$	0.9474

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

12

Table of Contents

Item 6. Exhibits

Exhibit No.	Description
4.1	Second Amended and Restated Depositary Trust Agreement is incorporated by reference to Exhibit 4.1 filed with the Current Report on Form 8-K filed by the Registrant on December 22, 2016
4.2	Standard Terms for Authorized Participant Agreements is incorporated by reference to Exhibit 4.2 filed with the Current Report on Form 8-K filed by the Registrant on December 22, 2016
10.1	First Amended and Restated Custodian Agreement between The Bank of New York Mellon and JPMorgan Chase Bank N.A., London branch is incorporated by reference to Exhibit 10.1 filed with the Current Report on Form 8-K filed by the Registrant on December 22, 2016
10.2	Sub-license Agreement is incorporated by reference to Exhibit 10.2 filed with Registration Statement No. 333-156506 on December 30, 2008
31.1	Certification by Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification by Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification by Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002
32.2	Certification by Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

13

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned in the capacities* indicated thereunto duly authorized.

iShares Delaware Trust Sponsor LLC,

Sponsor of the iShares Silver Trust (registrant)

/s/ Paul Lohrey

Paul Lohrey

Director, President and Chief Executive Officer

(Principal executive officer)

 

Date: May 5, 2017

/s/ Jack Gee

Jack Gee

Director and Chief Financial Officer

(Principal financial and accounting officer)

Date: May 5, 2017

* The registrant is a trust and the persons are signing in their respective capacities as officers of iShares Delaware Trust Sponsor LLC, the Sponsor of the registrant.

14

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Paul Lohrey, certify that:

1. I have reviewed this report on Form 10-Q of iShares Silver Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d‑15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5, 2017

/s/ Paul Lohrey

Paul Lohrey

President and Chief Executive Officer

(Principal executive officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Jack Gee, certify that:

1. I have reviewed this report on Form 10-Q of iShares Silver Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d‑15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5, 2017

/s/ Jack Gee

Jack Gee

Chief Financial Officer

(Principal financial officer)

EX-32.1

Exhibit 32.1

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of iShares Silver Trust (the “Trust”) on Form 10-Q for the period ended March 31, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Paul Lohrey, Chief Executive Officer of iShares Delaware Trust Sponsor LLC, the Sponsor of the Trust, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust.

It is not intended that this statement be deemed to be filed for purposes of the Securities Exchange Act of 1934.

Date: May 5, 2017

/s/ Paul Lohrey

Paul Lohrey*

President and Chief Executive Officer

(Principal executive officer)

* The registrant is a trust and Mr. Lohrey is signing in his capacity as an officer of iShares Delaware Trust Sponsor LLC, the Sponsor of the registrant.

EX-32.2

Exhibit 32.2

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of iShares Silver Trust (the “Trust”) on Form 10-Q for the period ended March 31, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jack Gee, Chief Financial Officer of iShares Delaware Trust Sponsor LLC, the Sponsor of the Trust, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust.

It is not intended that this statement be deemed to be filed for purposes of the Securities Exchange Act of 1934.

Date: May 5, 2017

/s/ Jack Gee

Jack Gee*

Chief Financial Officer

(Principal financial officer)

* The registrant is a trust and Mr. Gee is signing in his capacity as an officer of iShares Delaware Trust Sponsor LLC, the Sponsor of the registrant.

XML

Document And Entity Information	3 Months Ended
	Mar. 31, 2017 shares
Document Information [Line Items]
Entity Registrant Name	iShares Silver Trust
Entity Central Index Key	0001330568
Trading Symbol	slv
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Entity Common Stock, Shares Outstanding (in shares)	348,700,000
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Statements of Assets and Liabilities (Unaudited) - USD ($)		Mar. 31, 2017	Dec. 31, 2016
Assets
Investment in silver bullion, at fair value(a)	[1]	$ 5,965,691,104	$ 5,543,495,441
Total Assets		5,965,691,104	5,543,495,441
Liabilities
Sponsor’s fees payable		2,473,895	2,364,798
Total Liabilities		2,473,895	2,364,798
Commitments and contingent liabilities (Note 6)		0	0
Net Assets		$ 5,963,217,209	$ 5,541,130,643
Shares issued and outstanding(b) (in shares)	[2]	348,700,000	359,900,000
Net asset value per Share (Note 2C) (in dollars per share)		$ 17.10	$ 15.40

[1] Cost of investment in silver bullion: $6,097,115,732 and $6,305,715,839, respectively.

[2] No par value, unlimited amount authorized.

XML

Statements of Assets and Liabilities (Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands	Mar. 31, 2017	Dec. 31, 2016
Investment in silver bullion, cost	$ 6,097,115,732	$ 6,305,715,839
Shares, par value (in dollars per share)	$ 0	$ 0
Shares issued (in shares)	348,700,000	359,900,000

XML

Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Expenses
Sponsor’s fees	$ 7,165,596	$ 5,844,914
Total expenses	7,165,596	5,844,914
Net investment loss	(7,165,596)	(5,845,914)
Net Realized and Unrealized Gain (Loss)
Silver bullion sold to pay expenses	(510,077)	(1,703,192)
Silver bullion distributed for the redemption of Shares	(15,533,659)	(51,397,205)
Net realized loss	(16,043,736)	(53,100,397)
Net change in unrealized appreciation/depreciation	630,795,770	540,719,490
Net realized and unrealized gain (loss)	614,752,034	487,619,093
Net increase in net assets resulting from operations	$ 607,586,438	$ 481,774,179
Net increase in net assets per Share (in dollars per share)	$ 1.72	$ 1.45

XML

Statements of Changes in Net Assets (Unaudited) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Net Assets, Beginning of Period	$ 5,541,130,643	$ 4,391,943,604
Operations:
Net investment loss	(7,165,596)	(29,148,568)
Net realized loss	(16,043,736)	(111,239,707)
Net change in unrealized appreciation/depreciation	630,795,770	823,171,043
Net increase in net assets resulting from operations	607,586,438	682,782,768
Capital Share Transactions:
Contributions for Shares issued	84,171,380	1,702,628,324
Distributions for Shares redeemed	(269,671,252)	(1,236,224,053)
Net increase (decrease) in net assets from capital share transactions	(185,499,872)	466,404,271
Increase in net assets	422,086,566	1,149,187,039
Net Assets, End of Period	$ 5,963,217,209	$ 5,541,130,643
Shares issued and redeemed
Shares issued (in shares)	5,100,000	102,750,000
Shares redeemed (in shares)	(16,300,000)	(76,400,000)
Net increase (decrease) in Shares issued and outstanding (in shares)	(11,200,000)	26,350,000

XML

Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Cash Flows from Operating Activities
Proceeds from silver bullion sold to pay expenses	$ 7,056,499	$ 5,638,637
Expenses – Sponsor’s fees paid	(7,056,499)	(5,638,637)
Net cash provided by operating activities	0	0
Increase (decrease) in cash	0	0
Cash, beginning of period	0	0	$ 0
Cash, end of period	0	0	0
Reconciliation of Net Increase in Net Assets Resulting from Operations to Net Cash Provided by (Used in) Operating Activities
Net increase in net assets resulting from operations	607,586,438	481,774,179	682,782,768
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Proceeds from silver bullion sold to pay expenses	7,056,499	5,638,637
Net realized (gain) loss	16,043,736	53,100,397	111,239,707
Net change in unrealized appreciation/depreciation	(630,795,770)	(540,719,490)	$ (823,171,043)
Change in operating assets and liabilities:
Sponsor’s fees payable	109,097	206,277
Net cash provided by operating activities	0	0
Supplemental disclosure of non-cash information:
Silver bullion contributed for Shares issued	84,171,380	412,201,487
Silver bullion distributed for Shares redeemed	$ (269,671,252)	$ (172,985,000)

XML

Schedules of Investments (Unaudited)

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Investment Holdings, Schedule of Investments [Text Block]

iShares Silver Trust

Schedules of Investments

(Unaudited)

At

March

31,

2017

and

December

31,

2016

March

31,

2017

Description	Ounces		Cost		Fair Value
Silver bullion		330,326,197	$	6,097,115,732	$	5,965,691,104
Total Investment – 100.04%						5,965,691,104
Less Liabilities – (0.04)%						(2,473,895	)
Net Assets – 100.00%					$	5,963,217,209

December

31,

2016

Description	Ounces		Cost		Fair Value
Silver bullion		341,348,242	$	6,305,715,839	$	5,543,495,441
Total Investment – 100.04%						5,543,495,441
Less Liabilities – (0.04)%						(2,364,798	)
Net Assets – 100.00%					$	5,541,130,643

See notes to financial statements.

XML

Note 1 - Organization

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Business Description and Basis of Presentation [Text Block]

1

- Organization

The iShares Silver Trust (the “Trust”) was organized on

April

21,

2006

as a New York trust. The trustee is The Bank of New York Mellon (the “Trustee”), which is responsible for the day-to-day administration of the Trust. The Trust’s sponsor is iShares Delaware Trust Sponsor LLC, a Delaware limited liability company (the “Sponsor”). The Trust is governed by the provisions of the Second Amended and Restated Depositary Trust Agreement (the “Trust Agreement”) executed by the Trustee and the Sponsor on

December

22,

2016.

The Trust issues units of beneficial interest (“Shares”) representing fractional undivided beneficial interests in its net assets.

The Trust seeks to reflect generally the performance of the price of silver. The Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities. The Trust is designed to provide a vehicle for investors to make an investment similar to an investment in silver.

The accompanying unaudited financial statements were prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions for Form

10

-Q and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). In the opinion of management, all material adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of the interim period financial statements have been made. Interim period results are not necessarily indicative of results for a full-year period. These financial statements and the notes thereto should be read in conjunction with the Trust’s financial statements included in its Annual Report on Form

10

-K for the year ended

December

31,

2016,

as filed with the SEC on

February

24,

2017.

The Trust qualified as an investment company solely for accounting purposes and not for any other purpose and follows the accounting and reporting guidance under the Financial Accounting Standards Board Accounting Standards Codification Topic

946,

Financial Services - Investment Companies

, but is not registered and is not required to be registered, as an investment company under the Investment Company Act of

1940,

as amended.

XML

Note 2 - Significant Accounting Policies

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Significant Accounting Policies [Text Block]

2

- Significant Accounting Policies

A. Basis of Accounting

The following significant accounting policies are consistently followed by the Trust in the preparation of its financial statements in conformity with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Certain statements and captions in the financial statements for the prior years have been changed to conform to the current financial statement presentation.

B. Silver Bullion

JPMorgan Chase Bank N.A., London branch (the “Custodian”), is responsible for the safekeeping of silver bullion owned by the Trust.

Fair value of the silver bullion is based on the price per ounce of silver determined by the CME Group Inc. at approximately

12:00

p.m. (London time) and announced by Thomson Reuters shortly thereafter on each day that the London silver market is open for business (“LBMA Silver Price”).  

Gain or loss on sales of silver bullion is calculated on a trade date basis using the average cost method.

The following tables summarize activity in silver bullion for the

three

months ended

March

31,

2017

and

2016:

Three Months Ended March 31, 2017	Ounces			Average Cost			Fair Value			Realized Gain (Loss)
Beginning balance		341,348,242		$	6,305,715,839		$	5,543,495,441		$	—
Silver bullion contributed		4,830,754			84,171,380			84,171,380			—
Silver bullion distributed		(15,443,140	)		(285,204,911	)		(269,671,252	)		(15,533,659	)
Silver bullion sold to pay expenses		(409,659	)		(7,566,576	)		(7,056,499	)		(510,077	)
Net realized loss		—			—			(16,043,736	)		—
Net change in unrealized appreciation/depreciation		—			—			630,795,770			—
Ending balance		330,326,197		$	6,097,115,732		$	5,965,691,104		$	(16,043,736	)

Three Months Ended March 31, 2016	Ounces			Average Cost			Fair Value			Realized Gain (Loss)
Beginning balance		317,934,907		$	5,979,251,955		$	4,393,860,514		$	—
Silver bullion contributed		26,987,106			412,201,487			412,201,487			—
Silver bullion distributed		(11,952,590	)		(224,382,205	)		(172,985,000	)		(51,397,205	)
Silver bullion sold to pay expenses		(390,915	)		(7,341,829	)		(5,638,637	)		(1,703,192	)
Net realized loss		—			—			(53,100,397	)		—
Net change in unrealized appreciation/depreciation		—			—			540,719,490			—
Ending balance		332,578,508		$	6,159,729,408		$	5,115,057,457		$	(53,100,397	)

C. Calculation of Net Asset Value

On each business day, as soon as practicable after

4:00

p.m. (New York time), the net asset value of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the fair value of the silver and other assets held by the Trust. The Trustee computes the net asset value per Share (“NAV”) by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made.

D. Offering of the Shares

Trust Shares are issued and redeemed continuously in aggregations of

50,000

Shares in exchange for silver bullion rather than cash. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. The Trust only transacts with registered broker-dealers that are eligible to settle securities transactions through the book-entry facilities of the Depository Trust Company and that have entered into a contractual arrangement with the Trust and the Sponsor governing, among other matters, the creation and redemption of Shares (such broker-dealers, the “Authorized Participants”). Holders of Shares of the Trust

may

redeem their Shares at any time acting through an Authorized Participant and in the prescribed aggregations of

50,000

Shares;

provided

, that redemptions of Shares

may

be suspended during any period while regular trading on NYSE Arca, Inc. (“NYSE Arca”) is suspended or restricted, or in which an emergency exists as a result of which delivery, disposal or evaluation of silver is not reasonably practicable.

The per Share amount of silver exchanged for a purchase or redemption represents the per Share amount of silver held by the Trust, after giving effect to its liabilities. The Trustee calculates the silver amount in respect of any liabilities of the Trust daily using the LBMA Silver Price.

When silver bullion is exchanged in settlement of a redemption, it is considered a sale of silver bullion for accounting purposes.

E. Federal Income Taxes

The Trust is treated as a grantor trust for federal income tax purposes and, therefore, no provision for federal income taxes is required. Any interest, expenses, gains and losses are passed through to the holders of Shares of the Trust.

The Sponsor has reviewed the tax positions as of

March

31,

2017

and has determined that no provision for income tax is required in the Trust’s financial statements.

XML

Note 3 - Trust Expenses

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Trust Expenses [Text Block]

3

- Trust Expenses

The Trust pays to the Sponsor a Sponsor’s fee that accrues daily at an annualized rate equal to

0.50%

of the net asset value of the Trust, paid monthly in arrears. The Sponsor has agreed to assume the following administrative and marketing expenses incurred by the Trust: the Trustee’s fee, the Custodian’s fee, NYSE Arca listing fees, SEC registration fees, printing and mailing costs, audit fees and expenses, and up to

$100,000

per annum in legal fees and expenses.

XML

Note 4 - Related Parties

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

4

- Related Parties

The Sponsor and the Trustee are considered to be related parties to the Trust. The Trustee’s fee is paid by the Sponsor and is not a separate expense of the Trust.

XML

Note 5 - Indemnification

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Indemnification [Text Block]

5

- Indemnification

The Trust Agreement provides that the Sponsor and its shareholders, directors, officers, employees, affiliates (as such term is defined under the Securities Act of

1933,

as amended) and subsidiaries shall be indemnified from the Trust and held harmless against any loss, liability, or expense arising out of or in connection with the performance of their obligations under the Trust Agreement or any actions taken in accordance with the provisions of the Trust Agreement and incurred without their

(1)

negligence, bad faith or willful misconduct or

(2)

reckless disregard of their obligations and duties under the Trust Agreement.

The Trust has agreed to indemnify the Custodian for any loss incurred in connection with the custodian agreement, other than losses due to the Custodian’s negligence, fraud or willful default.

XML

Note 6 - Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

6

- Commitments and Contingent Liabilities

In the normal course of business, the Trust

may

enter into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that

may

be made against the Trust that have not yet occurred.

XML

Note 7 - Concentration Risk

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

7

- Concentration Risk

Substantially all of the Trust’s assets are holdings of silver bullion, which creates a concentration risk associated with fluctuations in the price of silver. Accordingly, a decline in the price of silver will have an adverse effect on the value of the Shares of the Trust. Factors that

may

have the effect of causing a decline in the price of silver include a change in economic conditions (such as a recession), an increase in the hedging activities of silver producers, and changes in the attitude of speculators, investors and other market participants towards silver.

XML

Note 8 - Financial Highlights

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Financial Highlights [Text Block]

8

- Financial Highlights

The following financial highlights relate to investment performance and operations for a Share outstanding for the

three

months ended

March

31,

2017

and

2016.

	Three Months Ended
	March 31,
	2017			2016
Net asset value per Share, beginning of period	$	15.40		$	13.17
Net investment loss (a)		(0.02	)		(0.02	)
Net realized and unrealized gain (b)		1.72			1.49
Net increase in net assets from operations		1.70			1.47
Net asset value per Share, end of period	$	17.10		$	14.64
Total return, at net asset value (c)(d)		11.04	%		11.16	%
Ratio to average net assets:
Net investment loss (e)		(0.50	) %		(0.50	) %
Expenses (e)		0.50	%		0.50	%

(a) Based on average Shares outstanding during the period.

(b) The amounts reported for a Share outstanding may not accord with the change in aggregate gains and losses on investment for the period due to the timing of Trust Share transactions in relation to the fluctuating fair values of the Trust’s underlying investment.

(c) Based on the change in net asset value of a Share during the period.

(d) Percentage is not annualized.

(e) Percentage is annualized.

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Note 9 - Investment Valuation

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Fair Value Disclosures [Text Block]

9

- Investment Valuation

U.S. GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trust’s policy is to value its investment at fair value.

Various inputs are used in determining the fair value of assets and liabilities. Inputs

may

be based on independent market data (“observable inputs”) or they

may

be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of

three

broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The

three

levels of the fair value hierarchy are as follows:

Level

1

–  Unadjusted quoted prices in active markets for identical assets or liabilities;

Level

2

–  Inputs other than quoted prices included within Level

1

that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and

Level

3

–  Unobservable inputs that are unobservable for the asset or liability, including the Trust’s assumptions used in determining the fair value of investments.

At

March

31,

2017

and

December

31,

2016,

the value of the silver bullion held by the Trust is categorized as Level

1.

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Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

A. Basis of Accounting

The following significant accounting policies are consistently followed by the Trust in the preparation of its financial statements in conformity with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Certain statements and captions in the financial statements for the prior years have been changed to conform to the current financial statement presentation.

Investment, Policy [Policy Text Block]

B. Silver Bullion

JPMorgan Chase Bank N.A., London branch (the “Custodian”), is responsible for the safekeeping of silver bullion owned by the Trust.

Fair value of the silver bullion is based on the price per ounce of silver determined by the CME Group Inc. at approximately

12:00

p.m. (London time) and announced by Thomson Reuters shortly thereafter on each day that the London silver market is open for business (“LBMA Silver Price”).  

Gain or loss on sales of silver bullion is calculated on a trade date basis using the average cost method.

The following tables summarize activity in silver bullion for the

three

months ended

March

31,

2017

and

2016:

Three Months Ended March 31, 2017	Ounces			Average Cost			Fair Value			Realized Gain (Loss)
Beginning balance		341,348,242		$	6,305,715,839		$	5,543,495,441		$	—
Silver bullion contributed		4,830,754			84,171,380			84,171,380			—
Silver bullion distributed		(15,443,140	)		(285,204,911	)		(269,671,252	)		(15,533,659	)
Silver bullion sold to pay expenses		(409,659	)		(7,566,576	)		(7,056,499	)		(510,077	)
Net realized loss		—			—			(16,043,736	)		—
Net change in unrealized appreciation/depreciation		—			—			630,795,770			—
Ending balance		330,326,197		$	6,097,115,732		$	5,965,691,104		$	(16,043,736	)

Three Months Ended March 31, 2016	Ounces			Average Cost			Fair Value			Realized Gain (Loss)
Beginning balance		317,934,907		$	5,979,251,955		$	4,393,860,514		$	—
Silver bullion contributed		26,987,106			412,201,487			412,201,487			—
Silver bullion distributed		(11,952,590	)		(224,382,205	)		(172,985,000	)		(51,397,205	)
Silver bullion sold to pay expenses		(390,915	)		(7,341,829	)		(5,638,637	)		(1,703,192	)
Net realized loss		—			—			(53,100,397	)		—
Net change in unrealized appreciation/depreciation		—			—			540,719,490			—
Ending balance		332,578,508		$	6,159,729,408		$	5,115,057,457		$	(53,100,397	)

Calculation of Net Asset Value [Policy Text Block]

C. Calculation of Net Asset Value

On each business day, as soon as practicable after

4:00

p.m. (New York time), the net asset value of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the fair value of the silver and other assets held by the Trust. The Trustee computes the net asset value per Share (“NAV”) by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made.

Offering of the Shares [Policy Text Block]

D. Offering of the Shares

Trust Shares are issued and redeemed continuously in aggregations of

50,000

Shares in exchange for silver bullion rather than cash. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. The Trust only transacts with registered broker-dealers that are eligible to settle securities transactions through the book-entry facilities of the Depository Trust Company and that have entered into a contractual arrangement with the Trust and the Sponsor governing, among other matters, the creation and redemption of Shares (such broker-dealers, the “Authorized Participants”). Holders of Shares of the Trust

may

redeem their Shares at any time acting through an Authorized Participant and in the prescribed aggregations of

50,000

Shares;

provided

, that redemptions of Shares

may

be suspended during any period while regular trading on NYSE Arca, Inc. (“NYSE Arca”) is suspended or restricted, or in which an emergency exists as a result of which delivery, disposal or evaluation of silver is not reasonably practicable.

The per Share amount of silver exchanged for a purchase or redemption represents the per Share amount of silver held by the Trust, after giving effect to its liabilities. The Trustee calculates the silver amount in respect of any liabilities of the Trust daily using the LBMA Silver Price.

When silver bullion is exchanged in settlement of a redemption, it is considered a sale of silver bullion for accounting purposes.

Income Tax, Policy [Policy Text Block]

E. Federal Income Taxes

The Trust is treated as a grantor trust for federal income tax purposes and, therefore, no provision for federal income taxes is required. Any interest, expenses, gains and losses are passed through to the holders of Shares of the Trust.

The Sponsor has reviewed the tax positions as of

March

31,

2017

and has determined that no provision for income tax is required in the Trust’s financial statements.

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Schedules of Investments (Unaudited) (Tables)

3 Months Ended

Mar. 31, 2017

Notes Tables

Investment [Table Text Block]

Description	Ounces		Cost		Fair Value
Silver bullion		330,326,197	$	6,097,115,732	$	5,965,691,104
Total Investment – 100.04%						5,965,691,104
Less Liabilities – (0.04)%						(2,473,895	)
Net Assets – 100.00%					$	5,963,217,209

Description	Ounces		Cost		Fair Value
Silver bullion		341,348,242	$	6,305,715,839	$	5,543,495,441
Total Investment – 100.04%						5,543,495,441
Less Liabilities – (0.04)%						(2,364,798	)
Net Assets – 100.00%					$	5,541,130,643

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Note 2 - Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2017

Notes Tables

Activity in Silver Bullion [Table Text Block]

Three Months Ended March 31, 2017	Ounces			Average Cost			Fair Value			Realized Gain (Loss)
Beginning balance		341,348,242		$	6,305,715,839		$	5,543,495,441		$	—
Silver bullion contributed		4,830,754			84,171,380			84,171,380			—
Silver bullion distributed		(15,443,140	)		(285,204,911	)		(269,671,252	)		(15,533,659	)
Silver bullion sold to pay expenses		(409,659	)		(7,566,576	)		(7,056,499	)		(510,077	)
Net realized loss		—			—			(16,043,736	)		—
Net change in unrealized appreciation/depreciation		—			—			630,795,770			—
Ending balance		330,326,197		$	6,097,115,732		$	5,965,691,104		$	(16,043,736	)

Three Months Ended March 31, 2016	Ounces			Average Cost			Fair Value			Realized Gain (Loss)
Beginning balance		317,934,907		$	5,979,251,955		$	4,393,860,514		$	—
Silver bullion contributed		26,987,106			412,201,487			412,201,487			—
Silver bullion distributed		(11,952,590	)		(224,382,205	)		(172,985,000	)		(51,397,205	)
Silver bullion sold to pay expenses		(390,915	)		(7,341,829	)		(5,638,637	)		(1,703,192	)
Net realized loss		—			—			(53,100,397	)		—
Net change in unrealized appreciation/depreciation		—			—			540,719,490			—
Ending balance		332,578,508		$	6,159,729,408		$	5,115,057,457		$	(53,100,397	)

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Note 8 - Financial Highlights (Tables)

3 Months Ended

Mar. 31, 2017

Notes Tables

Financial Highlights [Table Text Block]

	Three Months Ended
	March 31,
	2017			2016
Net asset value per Share, beginning of period	$	15.40		$	13.17
Net investment loss (a)		(0.02	)		(0.02	)
Net realized and unrealized gain (b)		1.72			1.49
Net increase in net assets from operations		1.70			1.47
Net asset value per Share, end of period	$	17.10		$	14.64
Total return, at net asset value (c)(d)		11.04	%		11.16	%
Ratio to average net assets:
Net investment loss (e)		(0.50	) %		(0.50	) %
Expenses (e)		0.50	%		0.50	%

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Schedules of Investments (Unaudited) - Investments (Details)	Mar. 31, 2017 USD ($) oz	Dec. 31, 2016 USD ($) oz	Mar. 31, 2016 USD ($) oz	Dec. 31, 2015 USD ($) oz
Silver bullion (Ounce) | oz	330,326,197	341,348,242	332,578,508	317,934,907
Investment in silver bullion, cost	$ 6,097,115,732	$ 6,305,715,839	$ 6,159,729,408	$ 5,979,251,955
Silver bullion fair value	5,965,691,104	5,543,495,441
Less Liabilities	(2,473,895)	(2,364,798)
Net Assets	$ 5,963,217,209	$ 5,541,130,643		$ 4,391,943,604

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Schedules of Investments (Unaudited) - Investments (Details) (Parentheticals)	Mar. 31, 2017	Dec. 31, 2016
Total investment, percentage of net asset value	100.04%	100.04%
Less liabilities, percentage of net asset value	(0.04%)	(0.04%)
Net assets, percentage of net asset value	100.00%	100.00%

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Note 2 - Significant Accounting Policies (Details Textual)	Mar. 31, 2017 shares
Shares Prescribed Aggregation	50,000

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Note 2 - Significant Accounting Policies - Activity in Silver Bullion (Details)	3 Months Ended			12 Months Ended
	Mar. 31, 2017 USD ($) oz		Mar. 31, 2016 USD ($) oz	Dec. 31, 2016 USD ($) oz
Beginning balance (Ounce) | oz	341,348,242		317,934,907	317,934,907
Beginning balance, average cost	$ 6,305,715,839		$ 5,979,251,955	$ 5,979,251,955
Beginning balance, fair value	$ 5,543,495,441	[1]	$ 4,393,860,514	4,393,860,514
Silver bullion contributed (Ounce) | oz	4,830,754		26,987,106
Silver bullion contributed, average cost	$ 84,171,380		$ 412,201,487
Silver bullion contributed, fair value	$ 84,171,380		$ 412,201,487
Silver bullion distributed (Ounce) | oz	(15,443,140)		(11,952,590)
Silver bullion distributed, average cost	$ (285,204,911)		$ (224,382,205)
Silver bullion distributed, fair value	(269,671,252)		(172,985,000)
Silver bullion distributed, realized gain (loss)	$ (15,533,659)		$ (51,397,205)
Silver bullion sold to pay expenses (Ounce) | oz	(409,659)		(390,915)
Silver bullion sold to pay expenses, average cost	$ (7,566,576)		$ (7,341,829)
Silver bullion sold to pay expenses, fair value	(7,056,499)		(5,638,637)
Silver bullion sold to pay expenses, realized gain (loss)	(510,077)		(1,703,192)
Net realized gain (loss), fair value	(16,043,736)		(53,100,397)	(111,239,707)
Net change in unrealized appreciation/depreciation, fair value	$ 630,795,770		$ 540,719,490	$ 823,171,043
Ending balance (Ounce) | oz	330,326,197		332,578,508	341,348,242
Ending balance, average cost	$ 6,097,115,732		$ 6,159,729,408	$ 6,305,715,839
Ending balance, fair value	5,965,691,104	[1]	5,115,057,457	5,543,495,441	[1]
Ending balance, realized gain (loss)	$ (16,043,736)		$ (53,100,397)	$ (111,239,707)

[1] Cost of investment in silver bullion: $6,097,115,732 and $6,305,715,839, respectively.

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Note 3 - Trust Expenses (Details Textual)	3 Months Ended
	Mar. 31, 2017 USD ($)
Sponsor's Fee Annualized Accrual Rate Based on Daily Net Asset Value	0.50%
Maximum [Member]
Legal Fees Per Year	$ 100,000

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Note 8 - Financial Highlights - Financial Highlights (Details) - $ / shares		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Net asset value per Share, beginning of period (in dollars per share)		$ 15.40	$ 13.17
Net investment loss(a) (in dollars per share)	[1]	(0.02)	(0.02)
Net realized and unrealized gain(b) (in dollars per share)	[2]	1.72	1.49
Net increase in net assets from operations (in dollars per share)		1.70	1.47
Net asset value per Share, end of period (in dollars per share)		$ 17.10	$ 14.64
Total return, at net asset value(c)(d)	[3],[4]	11.04%	11.16%
Ratio to average net assets:
Net investment loss(e)	[5]	(0.50%)	(0.50%)
Expenses(e)	[5]	0.50%	0.50%

[1] Based on average Shares outstanding during the period.

[2] The amounts reported for a Share outstanding may not accord with the change in aggregate gains and losses on investment for the period due to the timing of Trust Share transactions in relation to the fluctuating fair values of the Trust's underlying investment.

[3] Based on the change in net asset value of a Share during the period.

[4] Percentage is not annualized.

[5] Percentage is annualized.