ec4333873ec8420

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q/A

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2014

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: 001-34412

ETFS SILVER TRUST

(Exact name of registrant as specified in its charter)


New York	26-4586763
(State or other jurisdiction of incorporation or	(I.R.S. Employer Identification No.)
organization)

c/o ETF Securities USA LLC
48 Wall Street, 11th Floor
New York, NY	10005
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:

(212) 918-4954

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, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one)


Large accelerated filer	☐	Accelerated filer	☒
Non accelerated filer	☐	Smaller reporting company	☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

As of August 8, 2014, ETFS Silver Trust had 18,900,000 ETFS Physical Silver Shares outstanding.

EXPLANATORY NOTE

ETFS Silver Trust is filing this Amendment No.1 on form 10-Q/A (this "Amendment") to amend our 10-Q for the period ended June 30, 2014, filed on August 11, 2014 (the "Original Filing"). This amendment is being filed solely to include Exhibits 31.1, 31.2, 32.1 and 32.2 , which were excluded in the Original Filing due to a filing error.

No other changes have been made to the Original Filing. This Amendment No.1 does not reflect events that may have occurred subsequent to the Original Filing date, and does not modify or update in any way disclosures made in the Form 10-Q for the fiscal quarter ended June 30, 2014.

ETFS SILVER TRUST

FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 2014

INDEX




PART I. FINANCIAL INFORMATION
Item 1.	Condensed Financial Statements (Unaudited)	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	18
Item 4.	Controls and Procedures	18
Item 4T.	Controls and Procedures	18

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	19
Item 1A	Risk Factors	19
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	19
Item 3.	Defaults Upon Senior Securities	19
Item 4.	Mine Safety Disclosures	19
Item 5.	Other Information	19
Item 6.	Exhibits	20

SIGNATURES

ETFS SILVER TRUST

PART I. FINANCIAL INFORMATION

Item 1. Condensed Financial Statements (Unaudited)

Condensed Statements of Assets and Liabilities (Unaudited)
At June 30, 2014 and December 31, 2013



	June 30, 2014 (1)		December 31, 2013 (4)
(Amounts in 000's of US$, except for Share and per Share data)
ASSETS
Investment in silver (cost: June 30, 2014: $367,804; December 31, 2013: $346,436) (2)	$	392,845	$	346,436
Total assets		392,845		346,436

LIABILITIES
Fees payable to Sponsor		97		88
Silver payable		4,113		-
Total Liabilities		4,210		88

NET ASSETS	$	388,635	$	346,348

ANALYSIS OF NET ASSETS
Total net assets (3)	$	388,635	$	346,348

(1)Effective January 1, 2014, the Trust has adopted the provisions of Topic 946, Investment Companies, and follows specialized accounting. Refer to Note 2.1 for additional information.

(2)At June 30, 2014, the investment in silver is valued fair value. At December 31, 2013, the investment in silver was valued at the lower of cost or market value. Refer to note 2.1 for a breakdown of average cost and fair value of the investment in silver.

(3)Net assets at December 31, 2013 represents total liabilities, redeemable Shares and shareholders’ deficit. Authorized share capital is unlimited with no par value per Share. Shares issued and outstanding at June 30, 2014 were 18,900,000 and at December 31, 2013 were 18,000,000. Net asset value per Share at June 30, 2014 and December 31, 2013 was $20.56 and $19.24, respectively.

(4)Derived from audited Statement of Financial Condition as of December 31, 2013. The amounts are those previously reported under non investment company accounting. Refer to Note 2.1 for additional information.

See Notes to the Unaudited Condensed Financial Statements

ETFS SILVER TRUST

Schedule of Investments (Unaudited)
At June 30, 2014 and December 31, 2013



	June 30, 2014
Description	oz	Cost		Fair Value		% of Net Assets (1)
Investment in silver (in 000's of US$, except for oz and percentage data)
Silver	18,823,424.4	$	367,804	$	392,845	101.08%
Total investment in silver	18,823,424.4	$	367,804	$	392,845	101.08%


	December 31, 2013
Description	oz	Cost		Fair Value		% of Net Assets (2)
Investment in silver (in 000's of US$, except for oz and percentage data)
Silver	17,765,948.8	$	346,436	$	346,436	100.03%
Total investment in silver	17,765,948.8	$	346,436	$	346,436	100.03%

(1)Calculated as investment in silver at fair value divided by net assets, as at June 30, 2014, investment in silver is recorded at fair value. Refer to Note 2.1 for additional information.

(2)Calculated as investment in silver at cost divided by net assets, as at December 31, 2013, investment in silver was recorded at the lower of cost or market value. Refer to Note 2.1 for additional information.

See Notes to the Unaudited Condensed Financial Statements

ETFS SILVER TRUST

Condensed Statements of Operations (Unaudited)
For the three months ended June 30, 2014 and 2013 and the six months ended June 30, 2014 and 2013



	Three Months		Three Months		Six Months		Six Months
	Ended		Ended		Ended		Ended
	June 30, 2014 (1)		June 30, 2013 (2)		June 30, 2014 (1)		June 30, 2013 (2)
(Amounts in 000's of US$, except for Share and per Share data)
EXPENSES
Sponsor's Fee	$	423	$	471	$	824	$	1,092
Less: Waiver of Sponsor's Fee (Note 2.8)		(141)		(157)		(275)		(364)
Total expenses		282		314		549		728

Net investment loss		(282)		(314)		(549)		(728)

REALIZED AND UNREALIZED GAINS / (LOSSES)
Realized gain / (loss) on silver transferred to pay expenses		5		(28)		12		9
Realized loss on silver distributed for the redemption of Shares		-		(4,275)		-		(3,863)
Change in unrealized gain / (loss) on investment in silver		17,330		(161,262)		25,041		(161,262)
Total gain / (loss) on silver		17,335		(165,565)		25,053		(165,116)

Change in net assets from operations	$	17,053	$	(165,879)	$	24,504	$	(165,844)

Net increase / (decrease) in net assets per Share	$	0.90	$	(8.82)	$	1.32	$	(8.81)

Weighted average number of Shares		18,872,527		18,798,901		18,508,287		18,818,785

(1)Effective January 1, 2014, the Trust has adopted the provisions of Topic 946, Investment Companies, and follows specialized accounting. Refer to Note 2.1 for additional information.

(2)Amounts are those previously reported under non investment company accounting. Refer to Note 2.1 for additional information.

See Notes to the Unaudited Condensed Financial Statements

ETFS SILVER TRUST

Condensed Statements of Cash Flows (Unaudited)
For the three and six months ended June 30, 2013



	Three Months		Six Months
	Ended		Ended
	June 30, 2013 (1)		June 30, 2013 (1)
(Amounts in 000's of US$)
INCREASE IN CASH FROM OPERATIONS:
Cash proceeds received from transfer of silver	$	-	$	-
Cash expenses paid		-		-
Increase in cash resulting from operations		-		-

Cash and cash equivalents at beginning of period		-		-
Cash and cash equivalents at end of period	$	-	$	-

SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Value of silver received for creation of Shares	$	4,608	$	20,131

Value of silver distributed for redemption of Shares - at cost	$	21,927	$	24,668

RECONCILIATION OF CHANGE IN NET ASSETS FROM OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Change in net assets from operations	$	(165,879)	$	(165,844)
Adjustments to reconcile change in net assets from operations to net cash provided by operating activities:
Decrease in investment in silver		178,976		166,573
Decrease in fees payable to Sponsor		(52)		(55)
Increase / (decrease) in redeemable Shares:
Creations		4,608		20,131
Redemptions		(17,653)		(20,805)
Net cash provided by operating activities	$	-	$	-

SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Value of silver transferred to pay expenses	$	366	$	783

(1)In accordance with Topic 946, Investment Companies, the Trust meets the exemption criteria to exclude a statement of cash flows. Thus one has not been presented for the three and six months ended June 30, 2014. Refer to Note 2.1 for additional information.

See Notes to the Unaudited Condensed Financial Statements

ETFS SILVER TRUST

Condensed Statement of Changes in Net Assets (Unaudited)
For the six months ended June 30, 2014



	Six Months Ended June 30, 2014 (1)
(Amounts in 000's of US$, except for Share data)	Shares	Amount
Opening balance at December 31, 2013	18,000,000	$	346,348
Effect of adoption of new accounting principle (see Note 2.1)			-
Net investment loss			(549)
Realized gain on investment in silver			12
Change in unrealized gain on investment in silver			25,041
Creations	1,100,000		21,896
Redemptions	(200,000)		(4,113)
Closing balance at June 30, 2014	18,900,000	$	388,635

(1)Effective January 1, 2014, the Trust has adopted the provisions of Topic 946, Investment Companies, and follows specialized accounting. Refer to Note 2.1 for additional information.

See Notes to the Unaudited Condensed Financial Statements

ETFS SILVER TRUST

Financial Highlights (Unaudited)
For three and six months ended June 30, 2014



	Three Months		Six Months
	Ended		Ended
	June 30, 2014 (1)		June 30, 2014 (1)
Per Share Performance (for a Share outstanding throughout the entire period)

Net asset value per Share at beginning of period	$	19.69	$	19.24
Income from investment operations:
Net investment loss		(0.01)		(0.03)
Total realized gain and change in unrealized gain on investment in silver		0.88		1.35
Change in net assets from operations		0.87		1.32

Net asset value per Share at end of period	$	20.56	$	20.56

Weighted average number of Shares		18,872,527		18,508,287

Expense Ratio
Annualized Sponsor's Fee per Share (2)		0.30%		0.30%

Net Investment Loss Ratio
Annualized net investment loss ratio		(0.30)%		(0.30)%

Non-Annualized Total Return		4.42%		6.86%

(1)Effective January 1, 2014, the Trust has adopted the provisions of Topic 946, Investment Companies, and follows specialized accounting. Refer to Note 2.1 for additional information.

(2)The Annualized Sponsor's Fee per Share is calculated net of the waiver (refer to Note 2.8). The Gross Annualized Sponsor's Fee per Share is 0.45%.

See Notes to the Unaudited Condensed Financial Statements

ETFS SILVER TRUST

Notes to the Unaudited Condensed Financial Statements

1. Organization

The ETFS Silver Trust (the “Trust”) is an investment trust formed on July 20, 2009 (the “Date of Inception”) under New York law pursuant to a depositary trust agreement (the “Trust Agreement”) executed by ETF Securities USA LLC (the “Sponsor”) and the Bank of New York Mellon (the “Trustee”) at the time of the Trust’s organization. The Trust holds silver bullion and issues ETFS Physical Silver Shares (“Shares”) (in minimum blocks of 100,000 Shares, also referred to as “Baskets”) in exchange for deposits of silver and distributes silver in connection with the redemption of Baskets. Shares represent units of fractional undivided beneficial interest in and ownership of the Trust which are issued by the Trust. The Sponsor is a Delaware limited liability company and a wholly-owned subsidiary of ETF Securities Limited, a Jersey, Channel Islands based company. The Trust is governed by the Trust Agreement.

The investment objective of the Trust is for the Shares to reflect the performance of the price of silver, less the Trust’s expenses and liabilities. The Trust is designed to provide an individual owner of beneficial interests in the Shares (a “Shareholder”) an opportunity to participate in the silver market through an investment in securities. The fiscal year end for the Trust is December 31.

The accompanying unaudited condensed financial statements were prepared in accordance with the accounting principles generally accepted in the United States of America for interim financial information and with the instructions for the Form 10-Q. In the opinion of the Trust’s management, all adjustments (which consist of normal recurring adjustments) necessary to present fairly the financial position and results of operations as of and for the three and six months ended June 30, 2014 and for all periods presented have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed financial statements should be read in conjunction with the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the operating results for the full year.

ETFS SILVER TRUST

2. Significant Accounting Policies

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires those responsible for preparing financial statements to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Trust.

2.1. Basis of Accounting

Since the Trust’s inception, the Sponsor determined that the Trust was not an investment company within the scope of Financial Accounting Standards Board (“FASB”) Codification of Accounting Standards, Topic 946, Financial Services—Investment Companies (“Topic 946”). Consequently, the Trust did not prepare financial statements applying standards applicable to investment companies in accordance with Topic 946, including recording its investment in silver at “fair value” as defined in Topic 946. Instead, the Trust recorded its investment in silver at the lower of cost or fair value in accordance with ASC 330, Inventory and ASC 270, Interim Reporting.

Following the release of FASB Accounting Standards Update ASU 2013-08, Financial Services—Investments Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements, the Sponsor has re-evaluated whether the Trust falls within scope and has concluded that for reporting purposes, the Trust is classified as an investment company effective January 1, 2014. The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act.

As a result of the change in the evaluation of investment company status, the Trust must, from January 1, 2014, present its investment in silver at “fair value” as defined in Topic 946.

The adoption of Topic 946 accounting changed the presentation of the Trust’s financial statements prospectively from January 1, 2014 (the date of the adoption), the most significant aspects of which are as follows:

	1.	Presentation of prior year information has been conformed to the current year accounting standards in the Condensed Statement of Assets and Liabilities and Condensed Statement of Operations. A Condensed Statement of Changes in Net Assets is required and has been presented for the six month period ended June 30, 2014.
	2.	A Schedule of Investments is required as of June 30, 2014. The Schedule has also been included as of December 31, 2013, for comparative presentation.
	3.	Financial Highlights are required for the period ended June 30, 2014.
	4.	As the Trust meets the exemption criteria under Topic 946, a cash flow statement is not required for the period ended June 30, 2014. Since the adoption of the new accounting principle is prospective, the prior year statement of cash flows is still presented.
	5.	Required disclosures under Topic 820, Fair Value Measurements, have been included in the footnotes to the financial statements as of June 30, 2014. December 31, 2013 disclosures have also been included for comparative purposes.

The quantitative effect of the adoption of investment company accounting is presented below:



	Value at				Gain / (loss)
	December 31, 2013		Value at		as a result of
	at lower of cost		January 1, 2014		change in
(Amounts in 000's of US$)	or market value		at fair value		accounting principle
Investment in silver	$	346,436	$	346,436	$	-

ETFS SILVER TRUST

2.2. Valuation of Silver

The Trust follows the provisions of ASC 820, Fair Value Measurements and Disclosures ("ASC 820"). ASC 820 provides guidance for determining fair value and requires increased disclosure regarding the inputs to valuation techniques used to measure fair value. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Silver is held by HSBC Bank USA, N.A. (the “Custodian”) on behalf of the Trust and is recorded at fair value. The cost of silver is determined according to the average cost method and the fair value is based on the London Fix. Realized gains and losses on transfers of silver, or silver distributed for the redemption of Shares, are calculated on a trade date basis using cost. The London Fix price for silver is set by three market making members of the London Bullion Market Association at approximately 12:00 noon London Time, on each working day.

Once the value of silver has been determined, the NAV is computed by the Trustee by deducting all accrued fees and other liabilities of the Trust, including the remuneration due to the Sponsor (the “Sponsor’s Fee”), from the fair value of the silver and all other assets held by the Trust.

The table below summarizes the unrealized gains or losses on the Trust’s silver holdings as of June 30, 2014 and December 31, 2013:



(Amounts in 000's of US$)	June 30, 2014		December 31, 2013
Investment in silver - cost	$	367,804	$	346,436
Unrealized gain on investment in silver		25,041		-
Investment in silver - fair value	$	392,845	$	346,436

For the fiscal year 2014 onwards, the Trust recognizes changes in fair value of the investment in silver as changes in unrealized gains or losses on investment in silver through the Statement of Operations.

Prior to 2014, the Trust recognized the movements in value of the investment in silver arising from market declines on an interim basis. Increases in the value of the investment in silver through market price recoveries in later interim periods of the same fiscal year were recognized in the later interim period. Increases in value recognized on an interim basis were not permitted to exceed the previously recognized diminution in value. Unrealized losses at December 31, 2013 were crystallized as realized losses, and the average cost of silver was written down to market value.

The per Share amount of silver exchanged for a purchase or redemption is calculated daily by the Trustee, using the London Fix to calculate the silver amount in respect of any liabilities for which covering silver sales have not yet been made, and represents the per Share amount of silver held by the Trust, after giving effect to its liabilities, to cover expenses and liabilities and any losses that may have occurred.

ETFS SILVER TRUST

2.2. Valuation of Silver (continued)

Fair Value Hierarchy

Inputs

Generally accepted accounting principles establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows:

–	Level 1.	Unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access.
–	Level 2.	Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments and similar data.
–	Level 3.	Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the company’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The investment in silver is classified as a level 2 asset, as the Trust’s investment in silver is calculated using third party pricing sources supported by observable, verifiable inputs.

The categorization of the Trust’s assets is as shown below:



(Amounts in 000's of US$)	June 30, 2014		December 31, 2013

Level 2
Investment in silver	$	392,845	$	346,436

There were no re-allocations or transfers between levels during the period.

2.3. Silver Receivable and Payable

Silver receivable or payable represents the quantity of silver covered by contractually binding orders for the creation or redemption of Shares respectively, where the silver has not yet been transferred to or from the Trust’s account. Generally, ownership of the silver is transferred within three business days of the trade date.

Silver receivable or payable at June 30, 2014 and December 31, 2013 is set out below:



(Amounts in 000's of US$)	June 30, 2014		December 31, 2013
Silver receivable	$	-	$	-

Silver payable	$	4,113	$	-

ETFS SILVER TRUST

2.4. Creations and Redemptions of Shares

The Trust’s contractual obligation is to create or redeem Baskets with Authorized Participants at set prices on each trading day. These prices are based on an agreed formula published in the prospectus, which is equal to the net asset value of the Trust. The Trust expects to create and redeem Shares from time to time, but only in one or more Baskets. The Trust issues Shares in Baskets to Authorized Participants on an ongoing basis. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. An Authorized Participant is a person who (1) is a registered broker-dealer or other securities market participant such as a bank or other financial institution which is not required to register as a broker-dealer to engage in securities transactions, (2) is a participant in The Depository Trust Company, (3) has entered into an Authorized Participant Agreement with the Trustee and the Sponsor, and (4) has established an Authorized Participant Unallocated Account with the Trust’s Custodian or other silver clearing bank. An Authorized Participant Agreement is an agreement entered into by each Authorized Participant, the Sponsor and the Trustee which provides the procedures for the creation and redemption of Baskets and for the delivery of the silver required for such creations and redemptions. An Authorized Participant Unallocated Account is an unallocated silver account established with the Custodian or a silver clearing bank by an Authorized Participant.

The creation and redemption of Baskets is only made in exchange for the delivery to the Trust or the distribution by the Trust of the amount of silver represented by the Baskets being created or redeemed, the amount of which is based on the combined NAV of the number of Shares included in the Baskets being created or redeemed determined on the day the order to create or redeem Baskets is properly received.

The amount of silver represented by the Baskets created or redeemed can only be settled to the nearest 1/1000th of an ounce. As a result, the value attributed to the creation or redemption of Shares may differ from the value of silver to be delivered or distributed by the Trust. In order to ensure that the correct amount of silver is available at all times to back the Shares, the Sponsor accepts an adjustment to its management fees in the event of any shortfall or excess. For each transaction, this amount is not more than 1/1000th of an ounce.

Authorized Participants may, on any business day, place an order with the Trustee to create or redeem one or more Baskets. The typical settlement period for Shares is three business days. In the event of a trade date at period end, where a settlement is pending, a respective account receivable and/or payable will be recorded. When silver is exchanged in settlement of a redemption, it is considered a sale of silver for financial statement purposes.

The Shares of the Trust are classified as “Redeemable Shares” for financial statement purposes, since they are subject to redemption at the option of Authorized Participants. Outstanding Shares are reflected at redemption value, which represents the maximum obligation (based on NAV per Share), with the difference from historical cost recorded as an offsetting amount to retained earnings. When silver is exchanged in settlement of a redemption, a realized gain or loss in the amount of the difference between the fair value on the trade date and the historical cost is recorded through the Condensed Statement of Operations.

Changes in the Shares for the year ended December 31, 2013 is set out below:



	Year
	Ended
(Amounts in 000's of US$, except for Share and per Share data)	December 31, 2013
Number of Redeemable Shares
Opening balance		18,600,000
Creations		900,000
Redemptions		(1,500,000)
Closing balance		18,000,000

Redeemable Shares:
Opening balance	$	551,340
Creations		24,087
Redemptions		(32,844)
Adjustment to redemption value		(196,235)
Closing balance	$	346,348

Redemption value per Share at period end	$	19.24

ETFS SILVER TRUST

2.5. Revenue Recognition Policy

The primary expense of the Trust is the Sponsor’s Fee, which is paid by the Trust through in-kind transfers of silver to the Sponsor. With respect to expenses not otherwise assumed by the Sponsor, the Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s silver as necessary to pay these expenses. When selling silver to pay expenses, the Trustee will endeavor to sell the smallest amounts of silver needed to pay these expenses in order to minimize the Trust’s holdings of assets other than silver. Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended June 30, 2014.

Unless otherwise directed by the Sponsor, when selling silver the Trustee will endeavor to sell at the price established by the London Fix. The Trustee will place orders with dealers (which may include the Custodian) through which the Trustee expects to receive the most favorable price and execution of orders. The Custodian may be the purchaser of such silver only if the sale transaction is made at the next London Fix, or such other publicly available price that the Sponsor deems fair, in each case as set following the sale order. A gain or loss is recognized based on the difference between the selling price and the cost of the silver sold. Neither the Trustee nor the Sponsor is liable for depreciation or loss incurred by reason of any sale.

2.6. Income Taxes

The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself will not be subject to U.S. federal income tax. Instead, the Trust’s income and expenses will “flow through” to the Shareholders, and the Trustee will report the Trust’s proceeds, income, deductions, gains, and losses to the Internal Revenue Service on that basis.

The Sponsor has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required as of June 30, 2014 and December 31, 2013.

2.7. Investment in Silver

Changes in ounces of silver and the respective values for the six months ended June 30, 2014 and for the year ended December 31, 2013 are set out below:



	Six Months		Year
	Ended		Ended
(Amounts in 000's of US$, except for ounces data)	June 30, 2014		December 31, 2013
Ounces of silver
Opening balance		17,765,948.8		18,413,374.2
Creations		1,084,543.0		890,077.9
Redemptions		-		(1,482,521.1)
Transfers of silver to pay expenses		(27,067.4)		(54,982.2)
Closing balance		18,823,424.4		17,765,948.8

Investment in silver
Opening balance	$	346,436	$	509,601
Creations		21,896		24,087
Redemptions		-		(32,844)
Realized loss on silver distributed for the redemption of Shares		-		(8,241)
Transfers of silver to pay expenses		(540)		(1,360)
Realized gain/(loss) on silver transferred to pay expenses		12		(163)
Realized loss on investment in silver		-		(144,644)
Unrealized gain on investment in silver		25,041		-
Closing balance	$	392,845	$	346,436

ETFS SILVER TRUST

2.8. Expenses

The Trust will transfer silver to the Sponsor to pay the Sponsor’s Fee that will accrue daily at an annualized rate equal to 0.45% of the adjusted net asset value (“ANAV”) of the Trust, paid monthly in arrears. Presently, the Sponsor is continuing to waive a portion of its fee and reduce the Sponsor’s Fee to 0.30% (which it has done since the Date of Inception).

The Sponsor has agreed to assume administrative and marketing expenses incurred by the Trust, including the Trustee’s monthly fee and out-of-pocket expenses, the Custodian’s fee and the reimbursement of the Custodian’s expenses, exchange listing fees, United States Securities and Exchange Commission (the “SEC”) registration fees, printing and mailing costs, audit fees and certain legal expenses.

For the three months ended June 30, 2014 and 2013 the Sponsor’s Fee, net of fees waived by the Sponsor, was $281,968 and $313,654, respectively. For the six months ended June 30, 2014 and 2013 the Sponsor’s Fee, net of fees waived by the Sponsor, was $549,547 and $727,574, respectively.

As a result of the waiver, fees waived for the three months ended June 30, 2014 and 2013 were $140,984 and $156,827, respectively. Fees waived for the six months ended June 30, 2014 and 2013 were $274,774 and $363,787, respectively.

At June 30, 2014 and at December 31, 2013, the fees payable to the Sponsor were $96,999 and $88,391, respectively.

2.9. Subsequent Events

In accordance with the provisions set forth in FASB ASC 855-10, Subsequent Events, the Trust’s management has evaluated the possibility of subsequent events in the Trust’s financial statements through the filing date.

On May 14, 2014 that the London Silver Market Fixing Ltd announced it would discontinue the “London Fix” pricing benchmark for silver after August 14, 2014. The London Fix has been the benchmark price for the valuation of silver bullion held by the Trust. The London Bullion Market Association has accepted a proposal by CME Group and Thomson Reuters to operate a replacement silver price benchmark mechanism. Commencing August 15, 2014, CME Group/Thomson Reuters will operate an electronic, volume-weighted, over-the-counter silver bullion market clearing process to establish and publish a fixing price for a troy ounce of silver once each trading day at 12.00pm London time (the “London Silver Price”).

Commencing August 15, 2014, on each trading day the Sponsor will use the London Silver Price for valuing silver bullion received upon purchase of the Trust’s shares, delivered upon redemption of the Trust’s shares and otherwise held by the Trust. The Sponsor also expects to determine that the London Silver Price will fairly represent the commercial value of silver bullion held by the Trust and, effective 60 days after the delivery of notice of such determination to The Depository Trust Company, the registered owner of the shares of the Trust, the “Benchmark Price" (as defined in each ETFS Trust’s Trust Agreement) as of any day will be the London Silver Price for such day.

During this period, no other material subsequent events requiring adjustment to or disclosure in the financial statements were identified.

3. Related Parties

The Sponsor and the Trustee are considered to be related parties to the Trust. The Trustee’s and Custodian’s fees are paid by the Sponsor and are not separate expenses of the Trust. The Trustee and the Custodian and their affiliates may from time to time act as Authorized Participants and purchase or sell Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion. In addition the Trustee and the Custodian and their affiliates may from time to time purchase or sell silver directly, for their own account, as agent for their customers and for accounts over which they exercise investment discretion.

4. Concentration of Risk

The Trust’s sole business activity is the investment in silver, and substantially all the Trust’s assets are holdings of silver which creates a concentration of risk associated with fluctuations in the price of silver. Several factors could affect the price of silver, including: (i) a change in economic conditions, such as a recession; (ii) investors’ expectations with respect to the rate of inflation; (iii) currency exchange rates; (iv) interest rates; (v) investment and trading activities of hedge funds and commodity funds; and (vi) global or regional political, economic or financial events and situations. In addition, there is no assurance that silver will maintain its long-term value in terms of purchasing power in the future. In the event that the price of silver declines, the Sponsor expects the value of an investment in the Shares to decline proportionately. Each of these events could have a material effect on the Trust’s financial position and results of operations.

ETFS SILVER TRUST

5. Indemnification

Under the Trust’s organizational documents, the Trustee (and its directors, employees and agents) and the Sponsor (and its members, managers, directors, officers, employees and affiliates) are indemnified by the Trust against any liability, cost or expense it incurs without gross negligence, bad faith or willful misconduct on its part and without reckless disregard on its part of its obligations and duties under the Trust’s organizational documents. 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.

ETFS SILVER TRUST

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

This information should be read in conjunction with the unaudited condensed financial statements and notes to the unaudited condensed financial statements included in Item 1 of Part 1 of this Form 10-Q. The discussion and analysis that follows may contain forward-looking statements with respect to the Trust’s financial conditions, operations, future performance and business. These statements can be identified by the use of the words “may”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or similar words and phrases. These statements are based upon certain assumptions and analyses the Sponsor has made based on its perception of historical trends, current conditions and expected future developments. 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 reflect a change in management’s expectations or predictions.

Introduction

The Trust is a common law trust, formed under the laws of the state of New York on the July 20, 2009. The Trust is not managed like a corporation or an active investment vehicle. It does not have any officers, directors or employees and is administered by the Trustee pursuant to the Trust Agreement. The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act. It will not hold or trade in commodity futures contracts, nor is it a commodity pool, or subject to regulation as a commodity pool operator or a commodity trading adviser in connection with issuing Shares.

The Trust holds silver and is expected to issue Baskets in exchange for deposits of silver, and to distribute silver in connection with redemptions of Baskets. Shares issued by the Trust represent units of undivided beneficial interest in and ownership of the Trust. The investment objective of the Trust is for the Shares to reflect the performance of the price of silver, less the Trust’s expenses. The Sponsor believes that, for many investors, the Shares will represent a cost effective investment relative to traditional means of investing in silver.

The Trust issues and redeems Shares only with Authorized Participants in exchange for silver, only in aggregations of 100,000 or integral multiples thereof. A list of current Authorized Participants is available from the Sponsor or the Trustee.

Shares of the Trust trade on the New York Stock Exchange (the “NYSE”) Arca under the symbol “SIVR”.

Valuation of Silver and Computation of Net Asset Value

As of the London Fix on each day that the NYSE Arca is open for regular trading or as soon as practicable after 4:00 p.m. New York time on such day (the “Evaluation Time”), the Trustee values the silver held by the Trust and determines both the ANAV and the NAV of the Trust.

At the Evaluation Time, the Trustee values the Trust’s silver on the basis of that day’s London Fix, or, if no London Fix is made on such day or has not been announced by the Evaluation Time, the next most recent London Fix determined prior to the Evaluation Time is used, unless the Sponsor determines that such price is inappropriate as a basis for valuation. In the case this determination is made, the Sponsor will identify an alternative basis for such evaluation to be used by the Trustee.

Once the value of the silver held by the Trust has been determined, the Trustee subtracts all estimated accrued but unpaid fees and other liabilities of the Trust from the total value of the silver and all other assets of the Trust. The resulting figure is the ANAV of the Trust. The ANAV is used to compute the Sponsor’s Fee.

The Trustee then subtracts from the ANAV the amount of accrued Sponsor’s Fees computed for such day to determine the net asset value (“NAV”) of the Trust. The Trustee also determines the NAV per Share by dividing the NAV of the Trust by the number of Shares outstanding as of the close of trading on the NYSE Arca.

ETFS SILVER TRUST

The Quarter Ended June 30, 2014

Effective January 1, 2014, the Trust is deemed to be an investment company under generally accepted accounting principles. Accordingly, the Trust adopted the specialized accounting for an investment company as prescribed in Topic 946, Investment Companies. Refer to Note 2.1 of the unaudited condensed financial statements for additional information.

NAV of the Trust is obtained by subtracting the Trust’s liabilities on any day from the value of the silver owned and receivable by the Trust on that day; the NAV per Share is obtained by dividing the NAV of the Trust on a given day by the number of Shares outstanding on that day.

The Trust’s NAV increased from $366,247,224 at March 31, 2014 to $388,635,321 at June 30, 2014, a 6.11% increase for the quarter. The increase in the Trust’s NAV resulted primarily from an increase in the price per ounce of silver, which rose 4.51% from $19.97 at March 31, 2014 to $20.87 at June 30, 2014, and an increase in outstanding Shares, which rose from 18,600,000 Shares at March 31, 2014 to 18,900,000 Shares at June 30, 2014, a result of 500,000 Shares (5 Baskets) being created and 200,000 Shares (2 Baskets) being redeemed during the quarter.

NAV per Share increased 4.42% from $19.69 at March 31, 2014 to $20.56 at June 30, 2014. The Trust’s NAV per Share rose slightly less than the price per ounce of silver on a percentage basis due to the Sponsor’s Fee, net of waiver, which was $281,968 for the quarter, or 0.30% of the Trust’s assets on an annualized basis.

The NAV per Share of $20.81 at June 24, 2014 was the highest during the quarter, compared with a low of $18.49 at June 4, 2014.

Change in net assets from operations for the quarter ended June 30, 2014 was $17,053,935, resulting from a net gain of $5,484 on the transfer of silver to pay expenses and a change in unrealized gain on investment in silver of $17,330,419, offset by Sponsor’s Fees of $281,968. Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended June 30, 2014.

Prior to the adoption of investment company accounting, the Trust recorded its investment in silver at the lower of cost or market value. Under the previous presentation and accounting policies the net loss from operations for the quarter ended June 30, 2013 was $165,878,508, resulting from a net loss of $28,313 on the transfer of silver to pay expenses, a net loss of $4,274,491 on silver distributed for the redemption of Shares, an unrealized loss on silver of $161,262,050 and Sponsor’s Fees of $313,654. Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended June 30, 2013.

There was a change in unrealized gain on investment in silver in the quarter ended June 30, 2014 compared to an unrealized loss on investment in silver in the quarter ended June 30, 2014 as a result of the adoption of investment company accounting and movements in the price of silver during the respective quarters. Sponsor’s Fees are calculated as a percentage of assets. The Sponsor’s Fee in the quarter ended June 30, 2014 was lower than the fee for the quarter ended June 30, 2013, as the average assets were lower in the quarter ended June 30, 2014 compared to the quarter ended June 30, 2013.

The Six Months Ended June 30, 2014

The Trust’s NAV increased from $346,347,607 at December 31, 2013 to $388,635,321 at June 30, 2014, a 12.21% increase for the period. The increase in the Trust’s NAV resulted primarily from an increase in the price per ounce of silver, which rose 7.03% from $19.50 at December 31, 2013 to $20.87 at June 30, 2014, and an increase in outstanding Shares, which rose from 18,000,000 Shares at December 31, 2013 to 18,900,000 Shares at June 30, 2014, a result of 1,100,000 Shares (11 Baskets) being created and 200,000 Shares (2 Baskets) being redeemed during the period.

NAV per Share increased 6.86% from $19.24 at December 31, 2013 to $20.56 at June 30, 2014. The Trust’s NAV per Share rose slightly less than the price per ounce of silver on a percentage basis due to the Sponsor’s Fee, net of waiver, which was $549,547 for the period, or 0.30% of the Trust’s assets on an annualized basis.

The NAV per Share of $21.75 at February 24, 2014 was the highest during the period, compared with a low of $18.49 at June 4, 2014.

There was no change in net assets arising from the change in accounting principle (Refer to Note 2.1 of the unaudited condensed financial statements) as of January 1, 2014. Change in net assets from operations for the period ended June 30, 2014 was $24,503,981, resulting from a net gain of $12,330 on the transfer of silver to pay expenses and a change in unrealized gain on investment in silver of $25,041,198, offset by Sponsor’s Fees of $549,547. Other than the Sponsor’s Fee, the Trust had no expenses during the period ended June 30, 2014.

Prior to the adoption of investment company accounting, the Trust recorded its investment in silver at the lower of cost or market value. Under the previous presentation and accounting policies the net loss from operations for the period ended June 30, 2013 was $165,843,828, resulting from a net gain of $9,080 on the transfer of silver to pay expenses, offset by a net loss of $3,863,284 on silver distributed for the redemption of Shares, an unrealized loss of on silver of $161,262,050 and Sponsor’s Fees of $727,574. Other than the Sponsor’s Fee, the Trust had no expenses during the period ended June 30, 2013.

There was a change in unrealized gain on investment in silver in the period ended June 30, 2014 compared to an unrealized loss on investment in silver in the period ended June 30, 2013 as a result of the adoption of investment company accounting and movements in the price of silver during the respective periods. Sponsor’s Fees are calculated as a percentage of assets. The Sponsor’s Fee in the period ended June 30, 2014 was lower than the fee for the period ended June 30, 2013, as the average assets were lower in the period ended June 30, 2014 compared to the period ended June 30, 2013.

ETFS SILVER TRUST

Liquidity & Capital Resources

The Trust is not aware of any trends, demands, commitments, events or uncertainties that are reasonably likely to result in material changes to its liquidity needs. In exchange for the Sponsor’s 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 Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s silver as necessary to pay the Trust’s expenses not otherwise assumed by the Sponsor. The Trustee will not sell silver to pay the Sponsor’s Fee but will pay the Sponsor’s Fee through in-kind transfers of silver to the Sponsor. At June 30, 2014 the Trust did not have any cash balances.

Off-Balance Sheet Arrangements

The Trust has no off-balance sheet arrangements.

Critical Accounting Policies

The unaudited condensed financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these unaudited condensed 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. In addition, please refer to Note 2 to the unaudited condensed financial statements for further discussion of accounting policies.

Effective January 1, 2014, the Trust has adopted the provisions of Topic 946, Investment Companies, and follows specialized accounting. Other than a change in the presentation of the Trust’s financial statements, the most significant change is that the Trust must, from January 1, 2014, record its investment in silver at fair value. Prior to January 1, 2014 the investment in silver was recorded at the lower of cost and market value. As a result of this change, the Trust expects that there will be fluctuations in the value of investments based on changes in the price of silver.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

The Trust maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Chief Executive Officer and Chief Financial Officer of the Sponsor, and to the audit committee, as appropriate, to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of the Chief Executive Officer and the Chief Financial Officer of the Sponsor, the Sponsor conducted an evaluation of the Trust’s disclosure controls and procedures, as defined under Exchange Act Rules 13a-15(e) and 15d-15(e). Based on this evaluation, the Chief Executive Officer and the Chief Financial Officer of the Sponsor concluded that, as of June 30, 2014, the Trust’s disclosure controls and procedures were effective.

There have been no changes in the Trust’s or Sponsor’s internal control over financial reporting that occurred during the Trust’s fiscal quarter ended June 30, 2014 that have materially affected, or are reasonably likely to materially affect, the Trust’s or Sponsor’s internal control over financial reporting.

Item 4T. Controls and Procedures

Not applicable.

ETFS SILVER TRUST

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

There have been no material changes to the risk factors previously disclosed in the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

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

Item 2(a). None.

Item 2(b). Not applicable.

Item 2(c). For the three months ended June 30, 2014

5 Baskets were created.

2 Baskets were redeemed.



	Total Baskets	Total Shares	Average ounces of
Period	Redeemed	Redeemed	silver per Share
April 2014	-	-	-
May 2014	-	-	-
June 2014	2	200,000	0.985
	2	200,000	0.985

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

Item 6. Exhibits

(a) Exhibits



31.1	Chief Executive Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2	Chief Financial Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1	Chief Executive Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2	Chief Financial Officer’s Certificate, 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 Document*

101.DEF	XBRL Taxonomy Extension Definitions Document*

101.LAB	XBRL Taxonomy Extension Labels Document*

101.PRE	XBRL Taxonomy Extension Presentation Document*

*In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall be deemed to be “furnished” and not “filed.”

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 thereunto duly authorized.



	ETF SECURITIES USA LLC
	Sponsor of the ETFS Silver Trust
	(Registrant)

Date: August 11, 2014	/s/ Graham Tuckwell
	Graham Tuckwell
	President and Chief Executive Officer
	(Principal Executive Officer)

Date: August 11, 2014	/s/ Christopher Foulds
	Christopher Foulds
	Chief Financial Officer and Treasurer
	(Principal Financial Officer and Principal
	Accounting Officer)

*The Registrant is a trust and the persons are signing in their capacities as officers of ETF Securities USA LLC, the Sponsor of the Registrant.