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Form 10-Q iShares Silver Trust For: Mar 31

May 6, 2016 1:43 PM EDT
Table Of Contents

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, 2016

  

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, 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.

 

Large accelerated filer ☒

Accelerated filer ☐

 

 

Non-accelerated filer ☐

Smaller reporting company ☐

(Do not check if a 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 ☒

 



 

 

 

Table of Contents

 

PART I – FINANCIAL INFORMATION

Page

   

Item 1.

Financial Statements (Unaudited)

1

     
 

Statements of Assets and Liabilities at March 31, 2016 and December 31, 2015

1

     
 

Statements of Operations for the three months ended March 31, 2016 and 2015

2

     
 

Statements of Changes in Net Assets for the three months ended March 31, 2016 and the year ended December 31, 2015

3

     
 

Statements of Cash Flows for the three months ended March 31, 2016 and 2015

4

     
 

Schedules of Investments at March 31, 2016 and December 31, 2015

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, 2016 and December 31, 2015

 

   

March 31,

   

December 31,

 

(Dollar amounts in $000’s, except for per Share amounts)

 

2016

   

2015

 

Assets

               

Investment in silver bullion, at fair value(a)

  $ 5,115,057     $ 4,393,861  

Total Assets

    5,115,057       4,393,861  
                 

Liabilities

               

Sponsor’s fees payable

    2,123       1,917  

Total Liabilities

    2,123       1,917  
                 

Commitments and contingent liabilities (Note 6)

           
                 

Net Assets

  $ 5,112,934     $ 4,391,944  
                 

Shares issued and outstanding(b)

    349,350,000       333,550,000  

Net asset value per Share (Note 2D)

  $ 14.64     $ 13.17  

 


(a)     Cost of investment in silver bullion: $6,159,729 and $5,979,252, respectively.

(b)     No par value, unlimited amount authorized.

 

 

See notes to financial statements. 

 

  

iShares Silver Trust

Statements of Operations (Unaudited) 

For the three months ended March 31, 2016 and 2015

 

   

Three Months Ended
March 31,

 

(Dollar amounts in $000’s, except for per Share amounts)

 

2016

   

2015

 
Expenses                

Sponsor’s fees

  $ 5,845     $ 6,656  

Total expenses

    5,845       6,656  

Net investment loss

    (5,845 )     (6,656 )
                 
Net Realized and Unrealized Gain (Loss)                
Net realized loss from:                

Silver bullion sold to pay expenses

    (1,703 )     (1,169 )

Silver bullion distributed for the redemption of Shares

    (51,397 )     (42,041 )

Net realized loss

    (53,100 )     (43,210 )

Net change in unrealized appreciation/depreciation

    540,719       256,233  

Net realized and unrealized gain

    487,619       213,023  
                 

Net increase in net assets resulting from operations

  $ 481,774     $ 206,367  
                 

Net increase in net assets per Share

  $ 1.45     $ 0.61  

Weighted-average Shares outstanding

    333,035,714       338,820,000  

 

  

See notes to financial statements.

 

  

iShares Silver Trust

Statements of Changes in Net Assets (Unaudited)

For the three months ended March 31, 2016 and the year ended December 31, 2015

 

   

Three Months Ended

   

Year Ended

 

(Dollar amounts in $000’s)

 

March 31, 2016

   

December 31, 2015

 

Net Assets, Beginning of Period

  $ 4,391,944     $ 5,260,802  
                 
Operations:                

Net investment loss

    (5,845 )     (25,295 )

Net realized loss

    (53,100 )     (212,156 )

Net change in unrealized appreciation/depreciation

    540,719       (461,781 )

Net increase (decrease) in net assets resulting from operations

    481,774       (699,232 )
                 
Capital Share Transactions:                

Contributions for Shares issued

    412,201       859,468  

Distributions for Shares redeemed

    (172,985 )     (1,029,094 )

Net increase (decrease) in net assets from capital share transactions

    239,216       (169,626 )
                 

Increase (decrease) in net assets

    720,990       (868,858 )
                 

Net Assets, End of Period

  $ 5,112,934     $ 4,391,944  
                 
Shares issued and redeemed                

Shares issued

    28,350,000       57,150,000  

Shares redeemed

    (12,550,000 )     (67,600,000 )

Net increase (decrease) in Shares issued and outstanding

    15,800,000       (10,450,000 )

  

 

See notes to financial statements.

 

  

iShares Silver Trust

Statements of Cash Flows (Unaudited) 

For the three months ended March 31, 2016 and 2015

 

   

Three Months Ended
March 31,

 

(Dollar amounts in $000’s)

 

2016

   

2015

 

Cash Flows from Operating Activities:

               

Proceeds from silver bullion sold to pay expenses

  $ 5,639     $ 6,747  

Expenses – Sponsor’s fees paid

    (5,639 )     (6,747 )

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 Operating Activities:

               

Net increase in net assets resulting from operations

  $ 481,774     $ 206,367  

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:

               

Proceeds from silver bullion sold to pay expenses

    5,639       6,747  

Net realized loss

    53,100       43,210  

Net change in unrealized appreciation/depreciation

    (540,719 )     (256,233 )
Change in operating assets and liabilities:                

Sponsor’s fees payable

    206       (91 )

Net cash provided by operating activities

  $     $  
                 

Supplemental disclosure of non-cash information:

               

Silver bullion contributed for Shares issued

  $ 412,201     $ 180,518  

Silver bullion distributed for Shares redeemed

  $ (172,985 )   $ (305,139 )

 

 

See notes to financial statements.

 

 

iShares Silver Trust

Schedules of Investments (Unaudited)

At March 31, 2016 and December 31, 2015

 

(All balances in 000’s, except percentage data)

 

March 31, 2016

 

Description

 

Ounces

   

Cost

   

Fair Value

 

Silver bullion

    332,578.5     $ 6,159,729     $ 5,115,057  
                         

Total Investment – 100.04%

                    5,115,057  

Less Liabilities – (0.04)%

                    (2,123 )

Net Assets – 100.00%

                  $ 5,112,934  

 

December 31, 2015

 

Description

 

Ounces

   

Cost

   

Fair Value

 

Silver bullion

    317,934.9     $ 5,979,252     $ 4,393,861  
                         

Total Investment – 100.04%

                    4,393,861  

Less Liabilities – (0.04)%

                    (1,917 )

Net Assets – 100.00%

                  $ 4,391,944  

 

 

See notes to financial statements.

 

 

iShares Silver Trust

Notes to Financial Statements (Unaudited)

March 31, 2016

 

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 First Amended and Restated Depositary Trust Agreement (the “Trust Agreement”) executed by the Trustee and the Sponsor as of February 28, 2013. The Trust issues units of beneficial interest (or “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 accounting principles generally accepted 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, 2015, as filed with the SEC on February 29, 2016.

 

The Trust qualifies 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 year 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, 2016 and 2015 (all balances in 000’s):

 

Three Months Ended March 31, 2016

 

Ounces

   

Average
Cost

   

Fair
Value

   

Realized
Gain (Loss)

 

Beginning balance

    317,934.9     $ 5,979,252     $ 4,393,861     $  

Silver bullion contributed

    26,987.1       412,201       412,201        

Silver bullion distributed

    (11,952.6 )     (224,382 )     (172,985 )     (51,397 )

Silver bullion sold to pay expenses

    (390.9 )     (7,342 )     (5,639 )     (1,703 )

Net realized loss

                (53,100 )      

Net change in unrealized appreciation/depreciation

                540,719        

Ending balance

    332,578.5     $ 6,159,729     $ 5,115,057     $ (53,100 )

  

  

Three Months Ended March 31, 2015

 

Ounces

   

Average
Cost

   

Fair
Value

   

Realized
Gain (Loss)

 

Beginning balance

    329,564.2     $ 6,386,750     $ 5,263,140     $  

Silver bullion contributed

    10,767.1       180,518       180,518        

Silver bullion distributed

    (17,946.5 )     (347,180 )     (305,139 )     (42,041 )

Silver bullion sold to pay expenses

    (409.2 )     (7,916 )     (6,747 )     (1,169 )

Net realized loss

                (43,210 )      

Net change in unrealized appreciation/depreciation

                256,233        

Ending balance

    321,975.6     $ 6,212,172     $ 5,344,795     $ (43,210 )

  

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 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, 2016 and has determined that no provision for income tax is required in the Trust’s financial statements.

 

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.

 

8 - Financial Highlights

 

The following financial highlights relate to investment performance and operations for a Share outstanding for the three months ended March 31, 2016 and 2015.

 

   

Three Months Ended
March 31,

 
   

2016

   

2015

 

Net asset value per Share, beginning of period

  $ 13.17     $ 15.29  
                 

Net investment loss(a)

    (0.02 )     (0.02 )

Net realized and unrealized gain(b)

    1.49       0.61  

Net increase in net assets from operations

    1.47       0.59  

Net asset value per Share, end of period

  $ 14.64     $ 15.88  
                 

Total return, at net asset value(c),(d)

    11.16

%

    3.86

%

                 

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, 2016 and December 31, 2015, the value of the silver bullion held by the Trust is categorized as Level 1.

  

 

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 First Amended and Restated Depositary Trust Agreement (the “Trust Agreement”) between the Trustee and iShares Delaware Trust Sponsor LLC, the sponsor of the Trust (the “Sponsor”). The Trust issues units of beneficial interest (or “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 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 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 the net asset value per Share. 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 then subtracts 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 result is the net asset value of the Trust. The Trustee computes the net asset value per Share 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 it believes is important to understanding its results of operations and financial position. In addition, please refer to Note 2 to the financial statements for further discussion of the Trust’s accounting policies.

 

Valuation of Silver Bullion

 

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 indicators 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 held by the Trust.

 

Results of Operations

 

The Quarter Ended March 31, 2016

 

The Trust’s net asset value grew from $4,391,943,604 at December 31, 2015 to $5,112,934,270 at March 31, 2016, a 16.42% increase. The increase in the Trust’s net asset value resulted primarily from an increase in the LBMA Silver Price, which rose 11.29% from $13.82 at December 31, 2015 to $15.38 at March 31, 2016. Net asset value also increased due to an increase in outstanding Shares, which rose from 333,550,000 Shares at December 31, 2015 to 349,350,000 Shares at March 31, 2016, a consequence of 28,350,000 Shares (567 Baskets) being created and 12,550,000 Shares (251 Baskets) being redeemed during the quarter.

 

The 11.16% increase in the Trust’s net asset value per Share from $13.17 at December 31, 2015 to $14.64 at March 31, 2016 is directly related to the 11.29% increase in the LBMA Silver Price. 

 

The Trust’s net asset value per Share increased slightly less than the price of silver on a percentage basis due to the Sponsor’s fees, which were $5,844,914 for the quarter, or 0.12% of the Trust’s average weighted assets of $4,709,455,721 during the quarter. The net asset value per Share of $15.17 on March 18, 2016 was the highest during the quarter, compared with a low during the quarter of $12.93 on January 28, 2016.

 

Net increase in net assets resulting from operations for the quarter ended March 31, 2016 was $481,774,179, resulting from an unrealized gain on investment in silver bullion of $540,719,490, offset by a net investment loss of $5,844,914, a net realized loss of $1,703,192 from silver sold to pay expenses and a net realized loss of $51,397,205 on silver bullion distributed for the redemption of Shares. Other than the Sponsor’s fees of $5,844,914, 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.

 

 

  

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, 2015, filed with the Securities and Exchange Commission (“SEC”) on February 29, 2016.

 

 

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

 

a)  None.

 

b)  Not applicable.

 

c)  12,550,000 Shares (251 Baskets) were redeemed during the quarter ended March 31, 2016.

 

Period

 

Total Number of Shares
Redeemed

   

Average Ounces of
Silver Per Share

 

01/01/16 to 01/31/16

    8,700,000       0.9526  

02/01/16 to 02/29/16

    2,350,000       0.9522  

03/01/16 to 03/31/16

    1,500,000       0.9517  

Total

    12,550,000       0.9524  

 

 

Item 3. Defaults Upon Senior Securities

 

None.

 

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

 

Item 5. Other Information

 

None.

 

 

Item 6. Exhibits

 

Exhibit No.

 

Description

4.1

 

First Amended and Restated Depositary Trust Agreement is incorporated by reference to Exhibit 4.1 filed with Annual Report on Form 10-K on February 28, 2013

     

4.2

 

Standard Terms for Authorized Participant Agreements is incorporated by reference to Exhibit 4.2 filed with Registration Statement No.

333-156506 on December 30, 2008

     

10.1

 

Custodian Agreement is incorporated by reference to Exhibit 10.1 filed with Registration Statement No. 333-156506 on December 30, 2008

     

10.2

 

Sub-license Agreement is incorporated by reference to Exhibit 10.2 filed with Registration Statement No. 333-156506 on December 30, 2008

     

10.3

 

First Amendment to Custodian Agreement is incorporated by reference to Exhibit 10.3 filed with Registration Statement No. 333-137621 on September 27, 2006

     

10.4

 

Second Amendment to Custodian Agreement is incorporated by reference to Exhibit 10.1 filed with Current Report on Form 8-K on February 10, 2010

     

10.5

 

Third Amendment to Custodian Agreement is incorporated by reference to Exhibit 10.5 filed with Registration Statement No. 333-170492 on November 9, 2010

     

10.6

 

Fourth Amendment to Custodian Agreement is incorporated by reference to Exhibit 10.1 filed with Current Report on Form 8-K on February 14, 2012

     

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

 

 

  

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 6, 2016

 

 

/s/ Jack Gee

 

Jack Gee

 

Director and Chief Financial Officer

 

(Principal financial and accounting officer)

 

 

Date: May 6, 2016

  


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

 

 

 

 14

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 6, 2016

 

/s/ Paul Lohrey

 

Paul Lohrey

 

President and Chief Executive Officer

 

(Principal executive officer)

 

 

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 6, 2016

 

/s/ Jack Gee

 

Jack Gee

 

Chief Financial Officer

 

(Principal financial officer)

 

 

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, 2016 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. § 1350, as adopted pursuant to § 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 6, 2016 

 

/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.

 

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, 2016 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. § 1350, as adopted pursuant to § 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 6, 2016

 

/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.

 

v3.4.0.3
Document And Entity Information
3 Months Ended
Mar. 31, 2016
shares
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) 349,350,000
Document Type 10-Q
Document Period End Date Mar. 31, 2016
Document Fiscal Year Focus 2016
Document Fiscal Period Focus Q1
Amendment Flag false
v3.4.0.3
Statements of Assets and Liabilities (Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Assets    
Investment in silver bullion, at fair value(a) [1] $ 5,115,057 $ 4,393,861
Total Assets 5,115,057 4,393,861
Liabilities    
Sponsor’s fees payable 2,123 1,917
Total Liabilities $ 2,123 $ 1,917
Commitments and contingent liabilities (Note 6)
Net Assets $ 5,112,934 $ 4,391,944
Shares issued and outstanding(b) (in shares) [2] 349,350,000 333,550,000
Net asset value per Share (Note 2D) (in dollars per share) $ 14.64 $ 13.17
[1] Cost of investment in silver bullion: $6,159,729 and $5,979,252, respectively.
[2] No par value, unlimited amount authorized.
v3.4.0.3
Statements of Assets and Liabilities (Unaudited) (Parentheticals) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Investment in silver bullion, cost $ 6,159,729 $ 5,979,252
Shares, par value (in dollars per share) $ 0 $ 0
Shares issued (in shares) 349,350,000 333,550,000
v3.4.0.3
Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Expenses    
Sponsor’s fees $ 5,845 $ 6,656
Total expenses 5,845 6,656
Net investment loss (5,845) (6,656)
Net Realized and Unrealized Gain (Loss)    
Silver bullion sold to pay expenses, realized gain (loss) (1,703) (1,169)
Silver bullion distributed, realized gain (loss) (51,397) (42,041)
Net realized loss (53,100) (43,210)
Net change in unrealized appreciation/depreciation 540,719 256,233
Net realized and unrealized gain 487,619 213,023
Net increase in net assets resulting from operations $ 481,774 $ 206,367
Net increase in net assets per Share (in dollars per share) $ 1.45 $ 0.61
Weighted-average Shares outstanding (in shares) 333,035,714 338,820,000
v3.4.0.3
Statements of Changes in Net Assets (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Net Assets, Beginning of Period $ 4,391,944 $ 5,260,802
Operations:    
Net investment loss (5,845) (25,295)
Net realized loss (53,100) (212,156)
Net change in unrealized appreciation/depreciation 540,719 (461,781)
Net increase in net assets resulting from operations 481,774 (699,232)
Capital Share Transactions:    
Contributions for Shares issued 412,201 859,468
Distributions for Shares redeemed (172,985) (1,029,094)
Net increase (decrease) in net assets from capital share transactions 239,216 (169,626)
Increase (decrease) in net assets 720,990 (868,858)
Net Assets, End of Period $ 5,112,934 $ 4,391,944
Shares issued and redeemed    
Shares issued (in shares) 28,350,000 57,150,000
Shares redeemed (in shares) (12,550,000) (67,600,000)
Net increase (decrease) in Shares issued and outstanding (in shares) 15,800,000 (10,450,000)
v3.4.0.3
Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Cash Flows from Operating Activities:      
Proceeds from silver bullion sold to pay expenses $ 5,639,000 $ 6,747,000  
Expenses – Sponsor’s fees paid (5,639,000) (6,747,000)  
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 Operating Activities:      
Net increase in net assets resulting from operations 481,774,000 206,367,000 (699,232,000)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:      
Proceeds from silver bullion sold to pay expenses 5,639,000 6,747,000  
Net realized loss 53,100,000 43,210,000 212,156,000
Net change in unrealized appreciation/depreciation (540,719,000) (256,233,000) $ 461,781,000
Change in operating assets and liabilities:      
Sponsor’s fees payable 206,000 (91,000)  
Net cash provided by operating activities 0 0  
Supplemental disclosure of non-cash information:      
Silver bullion contributed for Shares issued 412,201,000 180,518,000  
Silver bullion distributed for Shares redeemed $ (172,985,000) $ (305,139,000)  
v3.4.0.3
Schedule of Investments (Unaudited)
3 Months Ended
Mar. 31, 2016
Notes to Financial Statements  
Investment Holdings, Schedule of Investments [Text Block]
Schedules of Investments
(Unaudited)
At March 31, 2016 and December 31, 2015
 
(All balances in 000’s, except percentage data)
 
March 31, 2016
 
Description
 
Ounces
   
Cost
   
Fair Value
 
Silver bullion
    332,578.5     $ 6,159,729     $ 5,115,057  
                         
Total Investment – 100.04%
                    5,115,057  
Less Liabilities – (0.04)%
                    (2,123 )
Net Assets – 100.00%
                  $ 5,112,934  
 
December 31, 2015
 
Description
 
Ounces
   
Cost
   
Fair Value
 
Silver bullion
    317,934.9     $ 5,979,252     $ 4,393,861  
                         
Total Investment – 100.04%
                    4,393,861  
Less Liabilities – (0.04)%
                    (1,917 )
Net Assets – 100.00%
                  $ 4,391,944  
v3.4.0.3
Note 1 - Organization
3 Months Ended
Mar. 31, 2016
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 First Amended and Restated Depositary Trust Agreement (the “Trust Agreement”) executed by the Trustee and the Sponsor as of February 28, 2013. The Trust issues units of beneficial interest (or “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 accounting principles generally accepted 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, 2015, as filed with the SEC on February 29, 2016.
 
The Trust qualifies 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.
v3.4.0.3
Note 2 - Significant Accounting Policies
3 Months Ended
Mar. 31, 2016
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 year 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, 2016 and 2015 (all balances in 000’s):
 
Three Months Ended March 31, 2016
 
Ounces
 
 
Average
Cost
 
 
Fair
Value
 
 
Realized
Gain (Loss)
 
Beginning balance
    317,934.9     $ 5,979,252     $ 4,393,861     $  
Silver bullion contributed
    26,987.1       412,201       412,201        
Silver bullion distributed
    (11,952.6 )     (224,382 )     (172,985 )     (51,397 )
Silver bullion sold to pay expenses
    (390.9 )     (7,342 )     (5,639 )     (1,703 )
Net realized loss
                (53,100 )      
Net change in unrealized appreciation/depreciation
                540,719        
Ending balance
    332,578.5     $ 6,159,729     $ 5,115,057     $ (53,100 )
 
 
 
 
Three Months Ended March 31, 2015
 
Ounces
 
 
Average
Cost
 
 
Fair
Value
 
 
Realized
Gain (Loss)
 
Beginning balance
    329,564.2     $ 6,386,750     $ 5,263,140     $  
Silver bullion contributed
    10,767.1       180,518       180,518        
Silver bullion distributed
    (17,946.5 )     (347,180 )     (305,139 )     (42,041 )
Silver bullion sold to pay expenses
    (409.2 )     (7,916 )     (6,747 )     (1,169 )
Net realized loss
                (43,210 )      
Net change in unrealized appreciation/depreciation
                256,233        
Ending balance
    321,975.6     $ 6,212,172     $ 5,344,795     $ (43,210 )
 
 
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 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, 2016 and has determined that no provision for income tax is required in the Trust’s financial statements.
v3.4.0.3
Note 3 - Trust Expenses
3 Months Ended
Mar. 31, 2016
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.
v3.4.0.3
Note 4 - Related Parties
3 Months Ended
Mar. 31, 2016
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.
v3.4.0.3
Note 5 - Indemnification
3 Months Ended
Mar. 31, 2016
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.
v3.4.0.3
Note 6 - Commitments and Contingent Liabilities
3 Months Ended
Mar. 31, 2016
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.
v3.4.0.3
Note 7 - Concentration Risk
3 Months Ended
Mar. 31, 2016
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.
v3.4.0.3
Note 8 - Financial Highlights
3 Months Ended
Mar. 31, 2016
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, 2016 and 2015.
 
 
 
Three Months Ended
March 31,
 
 
 
2016
 
 
2015
 
Net asset value per Share, beginning of period
  $ 13.17     $ 15.29  
                 
Net investment loss
(a)
    (0.02 )     (0.02 )
Net realized and unrealized gain
(b)
    1.49       0.61  
Net increase in net assets from operations
    1.47       0.59  
Net asset value per Share, end of period
  $ 14.64     $ 15.88  
                 
Total return, at net asset value
(c),(d)
    11.16
%
    3.86
%
                 
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.
v3.4.0.3
Note 9 - Investment Valuation
3 Months Ended
Mar. 31, 2016
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, 2016 and December 31, 2015, the value of the silver bullion held by the Trust is categorized as Level 1.
v3.4.0.3
Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2016
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 year 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, 2016 and 2015 (all balances in 000’s):
 
Three Months Ended March 31, 2016
 
Ounces
 
 
Average
Cost
 
 
Fair
Value
 
 
Realized
Gain (Loss)
 
Beginning balance
    317,934.9     $ 5,979,252     $ 4,393,861     $  
Silver bullion contributed
    26,987.1       412,201       412,201        
Silver bullion distributed
    (11,952.6 )     (224,382 )     (172,985 )     (51,397 )
Silver bullion sold to pay expenses
    (390.9 )     (7,342 )     (5,639 )     (1,703 )
Net realized loss
                (53,100 )      
Net change in unrealized appreciation/depreciation
                540,719        
Ending balance
    332,578.5     $ 6,159,729     $ 5,115,057     $ (53,100 )
 
 
Three Months Ended March 31, 2015
 
Ounces
 
 
Average
Cost
 
 
Fair
Value
 
 
Realized
Gain (Loss)
 
Beginning balance
    329,564.2     $ 6,386,750     $ 5,263,140     $  
Silver bullion contributed
    10,767.1       180,518       180,518        
Silver bullion distributed
    (17,946.5 )     (347,180 )     (305,139 )     (42,041 )
Silver bullion sold to pay expenses
    (409.2 )     (7,916 )     (6,747 )     (1,169 )
Net realized loss
                (43,210 )      
Net change in unrealized appreciation/depreciation
                256,233        
Ending balance
    321,975.6     $ 6,212,172     $ 5,344,795     $ (43,210 )
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 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, 2016 and has determined that no provision for income tax is required in the Trust’s financial statements.
v3.4.0.3
Schedule of Investments (Unaudited) (Tables)
3 Months Ended
Mar. 31, 2016
Notes Tables  
Investment [Table Text Block]
(All balances in 000’s, except percentage data)
 
March 31, 2016
 
Description
 
Ounces
   
Cost
   
Fair Value
 
Silver bullion
    332,578.5     $ 6,159,729     $ 5,115,057  
                         
Total Investment – 100.04%
                    5,115,057  
Less Liabilities – (0.04)%
                    (2,123 )
Net Assets – 100.00%
                  $ 5,112,934  
December 31, 2015
 
Description
 
Ounces
   
Cost
   
Fair Value
 
Silver bullion
    317,934.9     $ 5,979,252     $ 4,393,861  
                         
Total Investment – 100.04%
                    4,393,861  
Less Liabilities – (0.04)%
                    (1,917 )
Net Assets – 100.00%
                  $ 4,391,944  
v3.4.0.3
Note 2 - Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2016
Notes Tables  
Activity in Silver Bullion [Table Text Block]
Three Months Ended March 31, 2016
 
Ounces
 
 
Average
Cost
 
 
Fair
Value
 
 
Realized
Gain (Loss)
 
Beginning balance
    317,934.9     $ 5,979,252     $ 4,393,861     $  
Silver bullion contributed
    26,987.1       412,201       412,201        
Silver bullion distributed
    (11,952.6 )     (224,382 )     (172,985 )     (51,397 )
Silver bullion sold to pay expenses
    (390.9 )     (7,342 )     (5,639 )     (1,703 )
Net realized loss
                (53,100 )      
Net change in unrealized appreciation/depreciation
                540,719        
Ending balance
    332,578.5     $ 6,159,729     $ 5,115,057     $ (53,100 )
Three Months Ended March 31, 2015
 
Ounces
 
 
Average
Cost
 
 
Fair
Value
 
 
Realized
Gain (Loss)
 
Beginning balance
    329,564.2     $ 6,386,750     $ 5,263,140     $  
Silver bullion contributed
    10,767.1       180,518       180,518        
Silver bullion distributed
    (17,946.5 )     (347,180 )     (305,139 )     (42,041 )
Silver bullion sold to pay expenses
    (409.2 )     (7,916 )     (6,747 )     (1,169 )
Net realized loss
                (43,210 )      
Net change in unrealized appreciation/depreciation
                256,233        
Ending balance
    321,975.6     $ 6,212,172     $ 5,344,795     $ (43,210 )
v3.4.0.3
Note 8 - Financial Highlights (Tables)
3 Months Ended
Mar. 31, 2016
Notes Tables  
Financial Highlights [Table Text Block]
 
 
Three Months Ended
March 31,
 
 
 
2016
 
 
2015
 
Net asset value per Share, beginning of period
  $ 13.17     $ 15.29  
                 
Net investment loss
(a)
    (0.02 )     (0.02 )
Net realized and unrealized gain
(b)
    1.49       0.61  
Net increase in net assets from operations
    1.47       0.59  
Net asset value per Share, end of period
  $ 14.64     $ 15.88  
                 
Total return, at net asset value
(c),(d)
    11.16
%
    3.86
%
                 
Ratio to average net assets:
               
Net investment loss
(e)
    (0.50
)
%
    (0.50
)
%
Expenses
(e)
    0.50
%
    0.50
%
v3.4.0.3
Schedules of Investments (Unaudited) - Investments (Details)
$ in Thousands
Mar. 31, 2016
USD ($)
oz
Dec. 31, 2015
USD ($)
oz
Mar. 31, 2015
USD ($)
oz
Dec. 31, 2014
USD ($)
oz
Silver bullion | oz 332,578,500 317,934,900 321,975,600 329,564,200
Silver bullion $ 6,159,729 $ 5,979,252 $ 6,212,172 $ 6,386,750
Silver bullion 5,115,057 4,393,861    
Less Liabilities (2,123) (1,917)    
Net Assets $ 5,112,934 $ 4,391,944   $ 5,260,802
v3.4.0.3
Schedules of Investments (Unaudited) - Investments (Details) (Parentheticals)
Mar. 31, 2016
Total Investment, Percentage of Net Asset Value 100.04%
Less Liabilities, Percentage of Net Asset Value (0.04%)
Net Assets, Percentage of Net Asset Value 100.00%
v3.4.0.3
Note 2 - Significant Accounting Policies (Details Textual)
Mar. 31, 2016
shares
Shares Prescribed Aggregation 50,000
v3.4.0.3
Note 2 - Significant Accounting Policies - Activity in Silver Bullion (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2016
USD ($)
oz
Mar. 31, 2015
USD ($)
oz
Dec. 31, 2015
USD ($)
oz
Beginning balance (in Ounces) | oz 317,934,900 329,564,200 329,564,200
Beginning balance, average cost $ 5,979,252 $ 6,386,750 $ 6,386,750
Beginning balance, fair value $ 4,393,861 [1] $ 5,263,140 5,263,140
Silver bullion contributed (in Ounces) | oz 26,987,100 10,767,100  
Silver bullion contributed, average cost $ 412,201 $ 180,518  
Silver bullion contributed, fair value $ 412,201 $ 180,518  
Silver bullion distributed (in Ounces) | oz (11,952,600) (17,946,500)  
Silver bullion distributed, average cost $ (224,382) $ (347,180)  
Silver bullion distributed, fair value (172,985) (305,139)  
Silver bullion distributed, realized gain (loss) $ (51,397) $ (42,041)  
Silver bullion sold to pay expenses (in Ounces) | oz (390,900) (409,200)  
Silver bullion sold to pay expenses, average cost $ (7,342) $ (7,916)  
Silver bullion sold to pay expenses, fair value (5,639) (6,747)  
Silver bullion sold to pay expenses, realized gain (loss) (1,703) (1,169)  
Net realized loss (53,100) (43,210) (212,156)
Net change in unrealized appreciation/depreciation $ 540,719 $ 256,233 $ (461,781)
Ending balance (in Ounces) | oz 332,578,500 321,975,600 317,934,900
Ending balance, average cost $ 6,159,729 $ 6,212,172 $ 5,979,252
Ending balance, fair value 5,115,057 [1] 5,344,795 4,393,861 [1]
Ending balance, realized gain (loss) $ (53,100) $ (43,210) $ (212,156)
[1] Cost of investment in silver bullion: $6,159,729 and $5,979,252, respectively.
v3.4.0.3
Note 3 - Trust Expenses (Details Textual)
3 Months Ended
Mar. 31, 2016
USD ($)
Maximum [Member]  
Legal Fees Per Year $ 100,000
Sponsor's Fee Annualized Accrual Rate Based on Daily Net Asset Value 0.50%
v3.4.0.3
Note 8 - Financial Highlights - Financial Highlights (Details) - $ / shares
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Net asset value per Share, beginning of period (in dollars per share) $ 13.17 $ 15.29
Net investment loss(a) (in dollars per share) [1] (0.02) (0.02)
Net realized and unrealized gain(b) (in dollars per share) [2] 1.49 0.61
Net increase in net assets from operations (in dollars per share) 1.47 0.59
Net asset value per Share, end of period (in dollars per share) $ 14.64 $ 15.88
Total return, at net asset value(c),(d) [3],[4] 11.16% 3.86%
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.
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