| Significant Accounting Policies | 2. Significant
Accounting Policies The
preparation of financial statements in accordance with U.S. GAAP 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 The
Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting
Standards Codification (“ASC”) 946, Financial Services—Investment Companies 2.2. Valuation
of Silver The
Trust follows the provisions of ASC 820, Fair Value Measurement The
Trust’s silver is held by JPMorgan Chase Bank, N.A. (the “Custodian”). The Trust's silver may also be held by
another firm selected by the Custodian to hold the Trust's silver in the Trust's allocated account in the firm's vault premises
on a segregated basis and whose appointment has been approved by the Sponsor. At March 31, 2022, approximately 95.82 The
Trust's silver 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 Bullion Market Association ("LBMA") Silver Price. Realized gains and losses on transfers
of silver, or silver distributed for the redemption of Shares, are calculated on a trade date basis as the difference between
the fair value and average cost of silver transferred. The
ICE Benchmark Administration (“IBA”) conducts an electronic, over-the-counter silver auction in London, England to
establish a fixing price for an ounce of silver once each trading day, which is disseminated by major market vendors (the “LBMA
Silver Price”). The LBMA Silver Price is established by the LBMA-authorized bullion banks and market makers participating
in the auction. Once
the value of silver has been determined, the net asset value (the “NAV”) is computed by the Trustee by
deducting all accrued fees, expenses 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
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. The
per Share amount of silver exchanged for a purchase or redemption is calculated daily by the Trustee using the LBMA Silver
Price 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. Fair
Value Hierarchy ASC
820 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 Trust 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 Trust’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
Trust’s investment in silver is classified as a level 1 asset, as its value is calculated using unadjusted
quoted prices from primary market sources. The
categorization of the Trust’s assets is as shown below:
(Amounts in 000’s of US$) March 31, 2022 December 31, 2021
Level 1
Investment in silver $ 1,206,577 $ 995,405
There were no transfers between levels during the three months ended March 31, 2022 or the year ended December 31, 2021.
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
silver is transferred within two business days of the trade date. At March 31, 2022, the Trust had no no 2.4. Creations
and Redemptions of Shares The
Trust expects to create and redeem Shares from time to time, but only in one or more Baskets (a Basket equals a block of 50,000 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. 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 two 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
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 on each transaction.
For each transaction, this amount is not more than 1/1000th of an ounce of silver. As
the Shares of the Trust are subject to redemption at the option of Authorized Participants, the Trust has classified the outstanding
Shares as Net Assets. Changes in the number of Shares outstanding are presented in the Statement of Changes in Net Assets. 2.5. 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 2.6. Investment
in Silver Changes
in ounces of silver and their respective values for the three months ended March 31, 2022 and 2021 are set
out below:
Three
Months Ended March
31, 2022 Three
Months Ended March
31, 2021
(Amounts in 000’s of US$, except for ounces data)
Ounces of silver
Opening balance 43,119,101.1 32,617,862.0
Creations 5,535,699.4 5,989,089.7
Redemptions — (1,641,982.4 )
Transfers of silver to pay expenses (31,914.2 ) (25,386.9 )
Closing balance 48,622,886.3 36,939,582.4
Investment in silver
Opening balance $ 995,405 $ 863,884
Creations 138,785 160,444
Redemptions — (45,079 )
Realized gain on silver distributed for the redemption of Shares — 13,011
Transfers of silver to pay expenses (740 ) (674 )
Realized gain on silver transferred to pay expenses 77 184
Change in unrealized gain / (loss) on investment in silver 73,050 (105,220 )
Closing balance $ 1,206,577 $ 886,550 2.7. Expenses
/ Realized Gains / Losses The
Trust will transfer silver to the Sponsor to pay the Sponsor’s Fee that accrues daily at an annualized rate equal to 0.45 0.30 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 up to $ 100,000 For
the three months ended March 31, 2022 and 2021, the Sponsor's Fee, net of fees waived by the Sponsor, was $ 778,583 681,313 At
March 31, 2022 and at December 31, 2021, the fees payable to the Sponsor were $ 291,013 252,819 As
a result of the waiver, the Sponsor's Fee waived for the three months March 31, 2022 and 2021 was $ 389,290 340,657 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 Unless
otherwise directed by the Sponsor, when selling silver the Trustee will endeavor to sell at the price established by the
LBMA. 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 LBMA Silver Price 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 average cost
of the silver sold. Neither the Trustee nor the Sponsor is liable for depreciation or loss incurred by reason of any sale. Realized
gains and losses result from the transfer of silver for Share redemptions and / or to pay expenses and are recognized on
a trade date basis as the difference between the fair value and average cost of silver transferred. 2.8. Subsequent
Events In
accordance with the provisions set forth in FASB ASC 855-10, Subsequent Events |
