- 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.