What changed in this filing

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Item 1. Business

2024-02-29 compared with 2023-03-01 · 1217 added, 1037 removed, 67 unchanged (97% of the section changed)

purpose of the abrdn Silver ETF Trust (known as Aberdeen Standard Silver ETF Trust prior to March 31, 2022) (the “Trust”)

The purpose of the abrdn Silver ETF Trust (the “Trust”)

is to own silver transferred to the Trust in exchange for shares issued by the Trust (“Shares”).

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The assets of the Trust consist solely of silver

The Trust was formed on July 20, 2009 when an initial Creation and was made in exchange for the issuance of two

Baskets (a “Basket” consists of 50,000 Shares).

sponsor of the Trust is abrdn ETFs Sponsor LLC (known as Aberdeen Standard ETFs Sponsor LLC prior to March 1, 2022) (the “Sponsor”).

The Trust was formed on July 20, 2009 when an initial Creation and was made in exchange for the issuance of two Baskets

(a “Basket” consists of 50,000 Shares).

The sponsor of the Trust is abrdn ETFs Sponsor LLC (the “Sponsor”).

The trustee of the Trust is The Bank of New York Mellon (the “Trustee”).

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for the purpose of creations and redemptions was reduced from 100,000 Shares to 50,000 Shares effective on August 11, 2016.

Trust’s Shares at redeemable value increased from $995,151,629 at December 31, 2021 to $1,118,817,327 at December 31, 2022,

the Trust’s fiscal year end.

Outstanding Shares in the Trust increased from 44,750,000 Shares at December 31, 2021 to 48,650,000

Shares outstanding at December 31, 2022.

Trust is not managed like a corporation or an active investment vehicle.

The Trust’s Shares at redeemable value decreased from

$1,118,817,327 at December 31, 2022 to $1,060,402,598 at December 31, 2023, the Trust’s fiscal year end.

Outstanding Shares

in the Trust decreased from 48,650,000 Shares at December 31, 2022 to 46,550,000 Shares outstanding at December 31, 2023.

The Trust is not managed like a corporation or an active investment

The Trust has no directors, officers or employees.

does not engage in any activities designed to obtain a profit from or to improve the losses caused by changes in the price of silver.

The silver held by the Trust will only be delivered to pay the remuneration due to the Sponsor (the “Sponsor’s

Fee”), distributed to Authorized Participants (defined below) in connection with the redemption of Baskets or sold (1) on

an as-needed basis to pay Trust expenses not assumed by the Sponsor, (2) in the event the Trust terminates and liquidates its

assets, or (3) as otherwise required by law or regulation.

Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under

The Trust does not and will not hold or trade in commodities futures contracts, “commodity interests” or

any other instruments regulated by the Commodity Exchange Act (the “CEA”), as administered by the Commodity Futures

Trading Commission (the “CFTC”) and the National Futures Association (“NFA”).

The Trust is not a commodity

pool for purposes of the CEA and the Shares are not “commodity interests,” and neither the Sponsor nor the Trustee

is subject to regulation as a commodity pool operator or a commodity trading advisor in connection with the Shares.

has no fixed termination date.

Sponsor of the registrant maintains an Internet website at www.abrdn.com/us/etf through which the registrant’s annual reports

on Form 10-K, quarterly reports on Form 10-Q, and amendments to those reports filed or furnished pursuant to Section 13(a) or

15(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, are made available free of charge as soon as reasonably

practicable after they have been filed or furnished to the Securities and Exchange Commission (the “SEC”).

information regarding the Trust may also be found on the SEC’s EDGAR database at www.sec.gov.

investment objective of the Trust is for the Shares to reflect the performance of the price of physical silver bullion, less

the Trust’s expenses.

The Shares are intended to constitute a simple and cost-effective means of making an investment

similar to an investment in physical silver.

An investment in physical silver requires expensive and sometimes complicated

arrangements in connection with the assay, transportation, warehousing and insurance of the metal.

Traditionally, such expense

and complications have resulted in investments in physical silver being efficient only in amounts beyond the reach of many

Shares are intended to provide institutional and retail investors with a simple and cost-efficient

means, with minimal credit risk, of gaining investment benefits similar to those of holding silver

It does not engage in any activities designed to obtain a profit from

or to improve the losses caused by changes in the price of silver.

The silver held by the Trust will only be delivered

to pay the remuneration due to the Sponsor (the “Sponsor’s Fee”), distributed to Authorized Participants (defined

below) in connection with the redemption of Baskets or sold (1) on an as-needed basis to pay Trust expenses not assumed by the

Sponsor, (2) in the event the Trust terminates and liquidates its assets, or (3) as otherwise required by law or regulation.

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.

The Trust does not and will not hold or trade in

commodities futures contracts, “commodity interests” or any other instruments regulated by the Commodity Exchange Act

(the “CEA”), as administered by the Commodity Futures Trading Commission (the “CFTC”) and the National

Futures Association (“NFA”).

The Trust is not a commodity pool for purposes of the CEA and the Shares are not “commodity

interests,” and neither the Sponsor nor the Trustee is subject to regulation as a commodity pool operator or a commodity

trading advisor in connection with the Shares.

The Trust has no fixed termination date.

The Sponsor of the registrant maintains an Internet website

at www.abrdn.com/us/etf through which the registrant’s annual reports on Form 10-K, quarterly reports on Form 10-Q, and amendments

to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, or the

Exchange Act, are made available free of charge as soon as reasonably practicable after they have been filed or furnished to the

Securities and Exchange Commission (the “SEC”).

Additional information regarding the Trust may also be found on the

SEC’s EDGAR database at www.sec.gov.

Trust Objective

The investment objective of the Trust is for the Shares to reflect

the performance of the price of physical silver, less the Trust’s expenses.

The Shares are intended to constitute

a simple and cost-effective means of making an investment similar to an investment in physical silver.

An investment in physical silver

requires expensive and sometimes complicated arrangements in connection with the assay, transportation, warehousing and insurance

of the metal.

Traditionally, such expense and complications have resulted in investments in physical silver being efficient

only in amounts beyond the reach of many investors.

The Shares are intended to provide institutional and retail

investors with a simple and cost-efficient means, with minimal credit risk, of gaining investment benefits similar to those of

holding silver bullion.

The Shares offer an investment that:

Accessible and Relatively Cost Effective .

Investors can access the silver bullion market through a traditional brokerage

The Sponsor believes that investors will be able to more effectively implement strategic and tactical asset allocation

strategies that use silver bullion by using the Shares instead of using the traditional means of purchasing, trading and

holding silver bullion and for many investors, transaction costs related to the Shares will be lower than those associated with

the purchase, storage and insurance of physical silver.

Traded and Transparent.

The Shares trade on the NYSE Arca, providing investors with an efficient means to implement various

investment strategies.

The Shares are eligible for margin accounts and are backed by the assets of the Trust and the Trust does

not hold or employ any derivative securities.

Furthermore, the value of the Trust’s holdings are reported on the Trust’s

website daily.

● Easily Accessible and Relatively Cost Effective .

Investors can access the silver bullion market through a traditional brokerage account.

The Sponsor believes that investors

will be able to more effectively implement strategic and tactical asset allocation strategies that use silver bullion by using

the Shares instead of using the traditional means of purchasing, trading and holding silver bullion and for many investors,

transaction costs related to the Shares will be lower than those associated with the purchase, storage and insurance of physical

● Exchange Traded and Transparent.

trade on the NYSE Arca, providing investors with an efficient means to implement various investment strategies.

The Shares are

eligible for margin accounts and are backed by the assets of the Trust and the Trust does not hold or employ any derivative securities.

Furthermore, the value of the Trust’s holdings are reported on the Trust’s website daily.

● Minimal Credit Risk .

The Shares represent an interest in physical silver owned by the Trust (other than an amount

held in unallocated form which is not sufficient to make up a whole bar of which is held temporarily to effect a creation

or redemption of Shares).

Physical silver of the Trust in the Custodian’s possession is not subject to borrowing arrangements

with third parties.

Other than the silver temporarily being held in an unallocated silver account with the Custodian,

the physical silver of the Trust is not subject to counterparty or credit risks.

See “Risk Factors—Silver

held in the Trust’s unallocated silver account and any Authorized Participant’s unallocated silver account

is not segregated from the Custodian’s assets...” This contrasts with most other financial products that gain

exposure to silver through the use of derivatives that are subject to counterparty and credit risks.

in the Shares does not insulate the investor from certain risks, including price volatility.

The Shares represent an interest

in physical silver owned by the Trust (other than an amount held in unallocated form which is not sufficient to make up a

whole bar of which is held temporarily to effect a creation or redemption of Shares).

Physical silver of the Trust in

the Custodian’s possession is not subject to borrowing arrangements with third parties.

Other than the silver temporarily

being held in an unallocated silver account with the Custodian, the physical silver of the Trust is not subject to counterparty

or credit risks.

See “Risk Factors—Silver held in the Trust’s unallocated silver account and any Authorized

Participant’s unallocated silver account is not segregated from the Custodian’s assets...” This contrasts

with most other financial products that gain exposure to silver through the use of derivatives that are subject to counterparty

and credit risks.

Investing in the Shares does not insulate the investor from

certain risks, including price volatility.

See “Risk Factors.”

of the Silver Industry

section provides a brief introduction to the silver industry by looking at some of the key participants, detailing the primary

sources of demand and supply and outlining the role of the “official” sector (i.e., central banks) in the market.

this annual report, the term “ounces” refers to troy ounces.

participants in the world silver market may be classified in the following sectors:

the mining and producer sector, the banking

sector, the official sector, the investment sector, and the manufacturing sector.

Overview of the Silver Industry

This section provides a brief introduction to the silver industry

by looking at some of the key participants, detailing the primary sources of demand and supply and outlining the role of the “official”

sector (i.e., central banks) in the market.

In this annual report, the term “ounces” refers

to troy ounces.

Market Participants

The participants in the world silver market may be classified

in the following sectors:

the mining and producer sector, the banking sector, the official sector, the investment sector, and the

manufacturing sector.

A brief description of each follows.

and Producer Sector

group includes mining companies that specialize in silver and silver production, mining companies that produce silver as a by-product

of other production (such as a copper or gold producer), scrap merchants and recyclers.

banks provide a variety of services to the silver market and its participants, thereby facilitating interactions between other

Services provided by the bullion banking community include traditional banking products as well as mine financing, physical

silver purchases and sales, hedging and risk management, inventory management for industrial users and consumers and silver leasing.

Official Sector

are no official statistics published by the International Monetary Fund, Bank of International Settlements, or national banks

on silver holdings by national governments.

The main reason for this is that silver is generally not recognized as a reserve asset.

Consequently, there are very limited silver stocks held by governments.

According to The Silver Institute World Silver Survey

2022, the identifiable silver bullion inventories are as follows:

Mining and Producer Sector

This group includes mining

companies that specialize in silver and silver production, mining companies that produce silver as a by-product of other production

(such as a copper or gold producer), scrap merchants and recyclers.

According to The Silver Institute’s World Silver Survey 2023,

the top 20 producing countries are set forth in the table below.

As the World Silver Survey 2023 was published in April 2023,

information for 2023 is not available as of the date of this report.

million ounces

Banking Sector

Bullion banks provide a variety of services to the silver market

and its participants, thereby facilitating interactions between other parties.

Services provided by the bullion banking community

include traditional banking products as well as mine financing, physical silver purchases and sales, hedging and risk management,

inventory management for industrial users and consumers and silver leasing.

The Official Sector

There are no official statistics published by the International

Monetary Fund, Bank of International Settlements, or national banks on silver holdings by national governments.

The main reason

for this is that silver is generally not recognized as a reserve asset.

Consequently, there are very limited silver stocks held

by governments.

According to The Silver Institute World Silver Survey 2023, the identifiable silver bullion inventories are as

set forth in the table below.

As the World Silver Survey 2023 was published in April 2023, information for 2023 is not available

as of the date of this report.

Identifiable Silver Bullion Inventories*

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London Vaults

Shanghai Gold Exchange (SGE)

Shanghai Futures Exchange (SHFE)

Metals Focus, LBMA, COMEX, SGE, SHFE

Investment Sector

sector includes the investment and trading activities of both professional and private investors and speculators.

These participants

range from large hedge and mutual funds to day-traders on futures exchanges, and retail-level coin collectors.

Manufacturing Sector

fabrication and manufacturing sector represents all the commercial and industrial users of silver.

Industrial applications comprise

the largest use of silver.

The jewelry and silverware sector is the second largest, followed by the photographic industry (although

the latter has been declining over a number of years as a result of the spread of digital photography).

The Investment Sector

This sector includes the investment and trading activities of

both professional and private investors and speculators.

These participants range from large hedge and mutual funds to day-traders

on futures exchanges, and retail-level coin collectors.

The Manufacturing Sector

The fabrication and manufacturing sector represents all the

commercial and industrial users of silver.

Industrial applications comprise the largest use of silver.

The jewelry and silverware

sector is the second largest, followed by the photographic industry (although the latter has been declining over a number of years

as a result of the spread of digital photography).

Silver Supply and Demand 2014-2023

following table sets forth a summary of the world silver supply and demand for the period from 2012 to 2021 and is based

on information reported by the World Silver Survey 2022, published by The Silver Institute.

(in millions of ounces)

The following table sets forth a summary of the world silver

supply and demand for the period from 2014 to 2023 and

is based on information reported by the World Silver Survey 2023, published by The Silver Institute.

the World Silver Survey 2023 was published in April 2023, the table below includes forecasted information for 2023 as of the date

of publication.

As of the date of this report, final figures (i.e., non-forecasted) for 2023 are not yet available.

Silver Supply and Demand

Million ounces

Mine Production

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Net Official Sector Sales

Industrial Fabrication

Electrical & Electronic

…of which photovoltaics

Brazing Alloys & Solders

Other Industrials

Net Physical Investment

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Market Balance less ETPs

LBMA, Silver Price (US$/oz)

The Silver Institute - World Silver Survey 2022 (Metals Focus)

following are some of the main characteristics of the silver market illustrated by the table.

gold, silver has also been used as a currency in the past.

However, the main difference between gold and silver is that while

approximately half of gold demand is used for jewelry, approximately half of silver fabrication demand is used for industrial

applications.

mine production accounts for approximately 82% of total silver supply.

Silver Price (US$/oz, London price)

The Silver Institute - World Silver Survey 2023 (Metals

The following are some of the main characteristics of the silver

market illustrated by the table.

The balance between silver supply and demand is a fundamental

driver of its price.

Silver has some of the same drivers of investment demand as gold, in that it can be used as a hedge against inflation

or currency devaluation, or for portfolio diversification as an alternative currency.

As such, silver investment demand may be influenced

by interest rates.

Silver, unlike gold, has a significant demand for industrial applications, such as electronics, solar panels, and medical

equipment, due to its unique properties, such as high thermal and electrical conductivity.

New mine production accounts for approximately 82% of total

silver supply.

Recycled silver accounts for around 18% of total supply.

applications and jewelry demand accounted for over 65% of total demand in 2021.

Photography has been taking a lower share of overall

silver demand falling from 5% in 2012 to 3% in 2021, while photovoltaic demand has risen in recent years accounting for 11% in 2021.

Investment in ETP’s rose significantly in 2020 and represented 28% of demand in 2020.

chart of the price of Silver

price of silver is volatile and fluctuations are expected to have a direct impact on the value of the Shares.

However, movements

in the price of silver in the past are not a reliable indicator of future movements.

Movements may be influenced by various factors,

including announcements from central banks regarding a country’s reserve silver holdings, agreements among central banks,

political uncertainties around the world, and economic concerns.

The following chart illustrates the movements in the price of

an ounce of silver in dollars from December 31, 2012 to December 31, 2022 and is based on information provided by Bloomberg:

Industrial applications

and jewelry demand accounted for over 64% of total demand in 2022.

Photography has been taking a lower share of overall silver

demand falling from 4% in 2014 to 2% in 2022, while photovoltaic demand has risen in recent years accounting for 11% in 2022.

Net physical investment ( i.e.

in coins and bars) accounted for 27% of demand in 2022, up from a low of 16% in 2017.

Historical chart of the price of Silver

The price of silver is volatile and fluctuations are expected

to have a direct impact on the value of the Shares.

However, movements in the price of silver in the past are not a reliable indicator

of future movements.

Movements may be influenced by various factors, including announcements from central banks regarding a country’s

reserve silver holdings, agreements among central banks, political uncertainties around the world, and economic concerns.

The following

chart illustrates the movements in the price of an ounce of silver in dollars from December 31, 2013 to December 31, 2023 and is

based on information provided by Bloomberg:

Bloomberg, abrdn.

Chart data from 12/31/2013 to 12/31/2023.

Silver Price = SLVRLND Index.

in early 2011, when silver prices peaked at $48.44 per ounce, silver prices began a downward trend, albeit with multiple

upwards rallies (that have often lasted several months).

Spot Silver Price = SLVRLND Index.

Starting in early 2011, when silver prices

peaked at $48.44 per ounce, silver prices began a downward trend, albeit with multiple upwards rallies (that have often lasted several

The rise in the value of the U.S.

Dollar, sluggish industrial growth

and a tame inflation environment (which led some investors to revise their expectations of the effects of monetary expansion) were

some of the drivers behind the fall in silver prices from 2011 to 2019.

Silver reversed course in 2020, as prices rose 46.75%,

closing at $26.49 per ounce.

In 2021, silver took a slight step back after its historic performance in 2020, as it returned -13%

(as of December 31, 2021).

As the world emerged out of the pandemic, silver took a backseat to riskier asset classes such as equities

which is a reason for its negative performance during the year.

2022 was a volatile year for silver, as the price reached $26.41 per ounce in the weeks following Russia's invasion of Ukraine, up more

than 13% from the end of 2021.

However, the price of silver fell as low as $17.81 per ounce at the beginning of September, as the risk

of diminishing global economic growth, and aggressive interest rate hikes by the US Federal Reserve caused the U.S.

Dollar to strengthen

and silver prices to weaken.

Dollar, sluggish industrial growth and a tame inflation environment (which led some investors

to revise their expectations of the effects of monetary expansion) were some of the drivers behind the fall in silver prices from

2011 to 2019.

Silver reversed course in 2020, as prices rose 46.75%, closing at $26.49 per ounce.

In 2021, silver took a slight step

back after its historic performance in 2020, as it returned -13% (as of December 31, 2021).

Throughout 2021, silver took a backseat to

riskier asset classes, such as equities, which was one of the reasons for its negative performance during the year.

2022 was a volatile

year for silver.

On March 7, 2022, in response to Russia’s invasion of Ukraine, the LBMA suspended five Russian silver refiners.

Fewer suppliers to the LBMA may lead to a lower supply of Good Delivery silver and further volatility in the price of silver.

Factors—General Risks— War, a major terrorist attack and other geopolitical events, including but not limited to the war between Russia and Ukraine…may

lead to extended periods of price volatility” for additional information regarding the LBMA’s suspension of the Russian silver

The price of silver reached as high as $26.41 per ounce in the weeks following Russia’s invasion of Ukraine, up more

than 13% from the end of 2021, as the invasion, and the threat of sanctions on Russian exports, including silver, pushed prices higher.

The price of silver fell as low as $17.81 per ounce at the beginning of September 2022, as the risk of diminishing global economic growth,

and aggressive interest rate hikes by the U.S.

Federal Reserve caused the U.S.

Dollar to strengthen, and silver prices to weaken, in

concurrence with a slowing economy.

The potential of a weakening U.S.

Dollar, amidst low silver inventory levels and a reopening Chinese economy,

sparked a Q4 rally that saw the price of silver climb 25.9% over the quarter to close the year at $23.95 per ounce.

Despite the volatile

year, in 2022 the price of silver rose 2.8% above its 2021 closing price.

of the Silver Bullion Market

global trade in silver consists of Over-the-Counter (“OTC”) transactions in spot, forwards, and options and other

derivatives, together with exchange-traded futures and options.

Over-The-Counter Market

OTC silver market includes spot, forward, and option and other derivative transactions conducted on a principal-to-principal basis.

While this is a global, nearly 24-hour per day market, its main centers are London (the biggest venue) and New York.

Market makers,

as well as others in the OTC market, trade with each other and with their clients on a principal-to-principal basis.

and issues of credit are between the parties directly involved in the transaction.

Market makers include the market making members

of the London Bullion Market Association (“LBMA”), the trade association that acts as the coordinator for activities

conducted on behalf of its members and other participants in the London bullion market.

The twelve market-making members of the

BNP Paribas SA, Citibank N.A, Credit Suisse AG Zurich, HSBC, Goldman Sachs International, ICBC Standard Bank Plc, JPMorgan

Chase Bank, Merrill Lynch International, Morgan Stanley & Co.

International Plc, Standard Chartered Bank, Toronto-Dominion

Bank and UBS AG.

The OTC market provides a relatively flexible market in terms of quotes, price, size, destinations for delivery

and other factors.

Bullion dealers customize transactions to meet clients’ requirements.

The OTC market has no formal structure

and no open outcry meeting place.

Mining companies, central banks, manufacturers of jewelry and industrial products, together

with investors and speculators, tend to transact their business through one of these market centers.

Centers such as Dubai and

several cities in the Far East also transact substantial OTC market business, typically involving jewelry and small bars of silver

(1 kilogram or less) and will hedge their exposure by selling into one of these main OTC centers.

Bullion dealers have offices

around the world and most of the world’s major bullion dealers are either members or associate members of the LBMA.

are a further 75 full members, plus a number of associate members around the world.

The number of LBMA market-making, clearing

and full members reported in this annual report are as of the date of this annual report.

These numbers may change from time to

time as new members are added and existing members drop out.

In the OTC market for silver, the standard size of trades between

market makers is 100,000 ounces.

Liquidity in the OTC market can vary from time to time during the course of the 24-hour trading

Fluctuations in liquidity are reflected in adjustments to dealing spreads—the differential between a dealer’s

“buy” and “sell” prices.

The period of greatest liquidity in the bullion markets generally occurs at the

time of day when trading in the European time zones overlaps with trading in the United States, which is when OTC market trading

in London, New York, Zurich and other centers coincides with futures and options trading on the Commodity Exchange, Inc.

a designated contract market within the CME Group.

This period lasts for approximately four hours each New York business day morning.

London Silver Bullion Market

the market for physical silver is distributed globally, most OTC market trades are cleared through London.

In addition to coordinating

market activities, the LBMA acts as the principal point of contact between the market and its regulators.

A primary function of

the LBMA is its involvement in the promotion of refining standards by maintenance of the “Good Delivery List,” which

is a list of LBMA accredited refiners of silver.

The LBMA also coordinates market clearing and vaulting, promotes good trading

practices and develops standard documentation.

term “loco London” silver refers to silver physically held in London that meets the specifications for weight, dimensions,

fineness (or purity), identifying marks (including the assay stamp of a LBMA acceptable refiner) and appearance set forth in “The

Good Delivery Rules for Gold and Silver Bars” published by the LBMA.

Silver bars meeting these requirements are described

in this report from time to time as “Silver Good Delivery Bars.” The unit of trade in London is the troy ounce, whose

conversion between grams is:

1,000 grams equals 32.1507465 troy ounces and 1 troy ounce equals 31.1034768 grams.

A Silver Good

Delivery Bar is acceptable for delivery in settlement of a transaction on the OTC market.

A Silver Good Delivery Bar must contain

between 750 troy ounces and 1,100 troy ounces of silver with a minimum fineness (or purity) of 999.0 parts per 1,000.

Good Delivery Bar must also bear the stamp of one of the refiners who are on the LBMA-approved list.

Unless otherwise specified,

the silver spot price always refers to that of a Silver Good Delivery Bar.

Business is generally conducted over the phone and

through electronic dealing systems.

July 14, 2017, the LBMA announced that ICE Benchmark Administration (“IBA”) had been selected to be the third-party

administrator for the “LBMA Silver Price”.

Effective from October 2, 2017, IBA is providing the auction platform and

methodology as well as the overall administration and governance for the LBMA Silver Price benchmark.

IBA operates an “equilibrium

auction”, which is an electronic, tradable and auditable, over-the-counter auction for LBMA-authorized participating silver

bullion banks or market makers and sponsored clients of direct participants (“silver participants”) that establishes

a reference silver price for that day’s trading, often referred to as the “LBMA Silver Price”.

The LBMA Silver

Price equilibrium auction operated by CME Group Inc.

and Refinitiv prior to October 2, 2017 was selected by the LBMA as the silver

valuation replacement for the London silver fix previously determined by the London Silver Market Fixing Ltd.

that was discontinued

on August 14, 2014.

The LBMA Silver Price has become a widely used benchmark for daily silver prices and is quoted by various

financial information sources as the London silver fix was previously.

LBMA Silver Price is the result of an “equilibrium auction” because it establishes a price for a troy ounce of Silver

Good Delivery Bars that clears the maximum amount of bids and offers for silver entered by order-submitting silver participants

IBA uses ICE’s front-end system, WebICE, as the technology platform that allows direct participants, as well as

sponsored clients of direct participants, to manage their orders in the auction in real time via their own desktops.

electronic silver auction market develops, IBA expects to admit additional silver participants to the order submission process.

The benchmark is published when the auction finishes, typically a few minutes after 12:00 noon (London time).

the opening of each auction, IBA in the role of auction chairman (“Chairman”) announces an opening price (in U.S.

Dollars), that takes into account current market conditions and begins auction rounds, with an expected duration of at least 30

seconds each.

During each auction round, participants may enter the volume they wish to buy or sell at that price, and such orders

will be part of the price formation.

Aggregate bid and offer volume is shown live on WebICE.

At the end of each auction round,

the total net volume is calculated.

If this “imbalance” is larger than the imbalance tolerance (normally 500,000 oz.)

then the Chairman sets a new price (based on the current market conditions, and the direction and magnitude of the imbalance in

the round) and begins a new auction round.

If the imbalance is less than the tolerance, then the auction is complete with all

volume tradeable at that price.

Dollar, amidst low silver inventory levels and a reopening Chinese

economy, sparked a rally in the fourth quarter of 2022 that saw the price of silver climb 25.9% over the quarter to close the year at

$23.95 per ounce as of December 31, 2022.

Despite the volatile year, in 2022 the price of silver rose 2.8% above its 2021 closing price.

The strong demand and reduced supply trends that were prevalent towards the end of 2022 were expected

to continue in 2023;

however, economic and geopolitical factors continued to drive volatility in the price of silver over the course

While the spot price remained relatively flat to start the year, a disappointing Chinese economic recovery drove the

price as low as $20.09 on March 10, 2023, before a U.S.

banking crisis increased the likelihood of U.S.

policy rate cuts and drove

the spot price as high as $25.84 per ounce on May 5, 2023, as investors turned to silver in anticipation of lower interest rates.

However, the subsequent interest rate hike in May contributed to the price of silver falling as low as $22.34 per ounce on June

The price of silver continued to fluctuate throughout the third quarter of 2023 as a weaker dollar pushed the spot price

back above $25 per ounce on July 19, 2023;

however, the U.S.

Federal Reserve’s final interest rate hike of the year on July

26 increased the probability of a policy rate mistake, given mixed economic news, leading the price to close as low as $22.55 per

ounce on September 28, 2023.

The spot price of silver continued to fall at the start of Q4 2023, reaching as low as $21.06 per

ounce on October 3, 2023, before the U.S.

Treasury shifted issuance to short duration bonds, lowering 10-year yields.

market yields moved lower, removing the risk of excessive policy-rate tightening, the price climbed to $23.22 per ounce on October

The spot price of silver remained relatively steady over the next few weeks before speculation of potential interest

rate cuts in the U.S.

and Chinese economic stimulus drove the spot price of silver as high as $25.17 per ounce on December 4, 2023.

The price of silver ultimately ended the year at $23.79 per ounce on December 29, 2023, down -0.65% for the year, as market participants

were disappointed by the lack of economic stimulus in China.

Operation of the Silver Bullion Market

The global trade in silver consists of Over-the-Counter

(“OTC”) transactions in spot, forwards, and options and other derivatives, together with exchange-traded futures and

Global Over-The-Counter Market

The OTC silver market includes spot, forward, and option and

other derivative transactions conducted on a principal-to-principal basis.

While this is a global, nearly 24-hour per day market,

its main centers are London (the biggest venue) and New York.

Market makers, as well as others in the OTC market, trade with each

other and with their clients on a principal-to-principal basis.

All risks and issues of credit are between the parties directly

involved in the transaction.

Market makers include the market making members of the London Bullion Market Association (“LBMA”),

the trade association that acts as the coordinator for activities conducted on behalf of its members and other participants in

the London bullion market.

The eleven market-making members of the LBMA are:

BNP Paribas SA, Citibank N.A, HSBC, Goldman Sachs

International, ICBC Standard Bank Plc, JPMorgan Chase Bank, Merrill Lynch International, Morgan Stanley & Co.

International

Plc, Standard Chartered Bank, Toronto-Dominion Bank and UBS AG.

The OTC market provides a relatively flexible market in terms of

quotes, price, size, destinations for delivery and other factors.

Bullion dealers customize transactions to meet clients’

requirements.

The OTC market has no formal structure and no open outcry meeting place.

Mining companies, central banks, manufacturers

of jewelry and industrial products, together with investors and speculators, tend to transact their business through one of these

market centers.

Centers such as Dubai and several cities in the Far East also transact substantial OTC market business, typically

involving jewelry and small bars of silver (1 kilogram or less) and will hedge their exposure by selling into one of these main

Bullion dealers have offices around the world and most of the world’s major bullion dealers are either members

or associate members of the LBMA.

As of the date of this report, there are a further 80 full members, plus a number of associate members around the world.

number of LBMA market-making, clearing and full members reported in this annual report are as of the date of this annual report.

These numbers may change from time to time as new members are added and existing members drop out.

In the OTC market for silver,

the standard size of trades between market makers is 100,000 ounces.

Liquidity in the OTC market can vary from time to time during

the course of the 24-hour trading day.

Fluctuations in liquidity are reflected in adjustments to dealing spreads—the differential

between a dealer’s “buy” and “sell” prices.

The period of greatest liquidity in the bullion markets

generally occurs at the time of day when trading in the European time zones overlaps with trading in the United States, which is

when OTC market trading in London, New York, Zurich and other centers coincides with futures and options trading on the Commodity

Exchange, Inc.

(“COMEX”), a designated contract market within the CME Group.

This period lasts for approximately four

hours each New York business day morning.

The London Silver Bullion Market

Although the market for physical silver is distributed globally,

most OTC market trades are cleared through London.

In addition to coordinating market activities, the LBMA acts as the principal

point of contact between the market and its regulators.

A primary function of the LBMA is its involvement in the promotion of refining

standards by maintenance of the “Good Delivery List,” which is a list of LBMA accredited refiners of silver.

also coordinates market clearing and vaulting, promotes good trading practices and develops standard documentation.

The unit of trade in London is the troy ounce, whose conversion between grams is:

1,000 grams is equivalent to 32.1507465

troy ounces and 1 troy ounce is equivalent to 31.1034768 grams.

A Silver Good Delivery Bar is acceptable for delivery in settlement of a

transaction on the OTC market.

A Silver Good Delivery Bar must contain between 750 troy ounces and 1,100 troy ounces of silver

with a minimum fineness (or purity) of 999.0 parts per 1,000.

A Silver Good Delivery Bar must also bear the stamp of one of the

refiners who are on the LBMA-approved list.

Unless otherwise specified, the silver spot price always refers to that of a Silver

Good Delivery Bar.

Business is generally conducted over the phone and through electronic dealing systems.

On July 14, 2017, the LBMA announced that ICE Benchmark Administration

(“IBA”) had been selected to be the third-party administrator for the “LBMA Silver Price”.

Effective from

October 2, 2017, IBA is providing the auction platform and methodology as well as the overall administration and governance for

the LBMA Silver Price benchmark.

IBA operates an “equilibrium auction”, which is an electronic, tradable and auditable,

over-the-counter auction for LBMA-authorized participating silver bullion banks or market makers and sponsored clients of direct

participants (“silver participants”) that establishes a reference silver price for that day’s trading, often

referred to as the “LBMA Silver Price”.

The LBMA Silver Price equilibrium auction operated by CME Group Inc.

and Refinitiv

prior to October 2, 2017 was selected by the LBMA as the silver valuation replacement for the London silver fix previously determined

by the London Silver Market Fixing Ltd.

that was discontinued on August 14, 2014.

The LBMA Silver Price has become a widely used

benchmark for daily silver prices and is quoted by various financial information sources as the London silver fix was previously.

The LBMA Silver Price is the result of an “equilibrium

auction” because it establishes a price for a troy ounce of Silver Good Delivery Bars that clears the maximum amount of bids

and offers for silver entered by order-submitting silver participants each day.

IBA uses ICE’s front-end system, WebICE,

as the technology platform that allows direct participants, as well as sponsored clients of direct participants, to manage their

orders in the auction in real time via their own desktops.

As the IBA electronic silver auction market develops, IBA expects to

admit additional silver participants to the order submission process.

The benchmark is published when the auction finishes, typically

a few minutes after 12:00 noon (London time).

At the opening of each auction, IBA in the role of auction chairman

(“Chairman”) announces an opening price (in U.S.

Dollars), that takes into account current market conditions and begins

auction rounds, with an expected duration of at least 30 seconds each.

During each auction round, participants may enter the volume

they wish to buy or sell at that price, and such orders will be part of the price formation.

Aggregate bid and offer volume is

shown live on WebICE.

At the end of each auction round, the total net volume is calculated.

If this “imbalance” is

larger than the imbalance tolerance (normally 500,000 oz.) then the Chairman sets a new price (based on the current market conditions,

and the direction and magnitude of the imbalance in the round) and begins a new auction round.

If the imbalance is less than the

tolerance, then the auction is complete with all volume tradeable at that price.

The price is then set in U.S.

Dollars and also converted into other currencies, including Australian

Dollars, British Pounds, Canadian Dollars, Euros, Onshore and Offshore Yuan, Indian Rupees, Japanese Yen, Malaysian Ringgit, Russian

Rubles, Singapore Dollars, South African Rand, Swiss Francs, New Taiwan Dollars, Thai Baht and Turkish Lira.

The auction is run

at 12:00 noon (London time).

the auction, the price at the start of each round, and the volumes at the end of each round are available through major market

data vendors.

As soon as the auction finishes, the final prices and volumes are available through major market data vendors.

also publishes transparency reports, detailing the prices, volumes and times for each round of the auction.

These transparency

reports are available through major market data vendors and IBA when the auction finishes.

The process can also be observed real-time

through a WebICE screen.

The auction mechanism provides a complete audit trail.

are currently thirteen direct participants who have been accredited to contribute to the LBMA Silver Price:

Citibank N.A.

Branch, Coins ‘N Things Inc., DRW Investments, LLC, Goldman Sachs, HSBC Bank USA NA, Jane Street Global Trading

LLC, JP Morgan Chase Bank N.A London Branch, Koch Supply and Trading LP, Marex, Morgan Stanley, Standard Chartered Bank, StoneX

Financial Ltd.

Dollars and also

converted into other currencies, including Australian Dollars, British Pounds, Canadian Dollars, Euros, Onshore and Offshore Yuan,

Indian Rupees, Japanese Yen, Malaysian Ringgit, Russian Rubles, Singapore Dollars, South African Rand, Swiss Francs, New Taiwan

Dollars, Thai Baht and Turkish Lira.

The auction is run at 12:00 noon (London time).

During the auction, the price at the start of each round, and

the volumes at the end of each round are available through major market data vendors.

As soon as the auction finishes, the final

prices and volumes are available through major market data vendors.

IBA also publishes transparency reports, detailing the prices,

volumes and times for each round of the auction.

These transparency reports are available through major market data vendors and

IBA when the auction finishes.

The process can also be observed real-time through a WebICE screen.

The auction mechanism provides

a complete audit trail.

As of the date of

this report, there are thirteen direct participants who have been accredited to contribute to the LBMA Silver Price:

London Branch, Coins ‘N Things Inc., DRW Investments, LLC, Goldman Sachs, HSBC Bank USA NA, Jane Street

Global Trading LLC, JP Morgan Chase Bank N.A London Branch, Koch Supply and Trading LP, Marex, Morgan Stanley, Standard

Chartered Bank, StoneX Financial Ltd.

and The Toronto Dominion Bank.

April 1, 2015, the LBMA Silver Price has been regulated by the Financial Conduct Authority (“FCA”) in the United Kingdom

IBA is authorized as a regulated benchmark administrator by the FCA.

Under the UK benchmark regulation,

the governance structure for a regulated benchmark must include an Oversight Committee, made up of market participants, industry

bodies, direct participant representatives, infrastructure providers and the administrator (i.e., IBA).

Through the Oversight

Committee the LBMA continues to have significant involvement in the oversight of the auction process, including, among other matters,

changes to the methodology and accreditation of direct participants.

The price discovery process for the LBMA Silver Price is

subject to surveillance by IBA.

IBA has been formally assessed against the IOSCO Principles for Financial Benchmarks (the “IOSCO

Principles”).

In order to meet the IOSCO Principles, the price discovery used for the LBMA Silver Price benchmark is auditable

and transparent.

LBMA Silver Price is viewed as a full and fair representation of all market interest at the conclusion of the auction.

auction process is similar to CME Group’s auction process, which in turn was similar to the non-electronic process previously

used to establish the London silver fix where the London silver fix process adjusted the silver price up or down until all the

buy and sell orders are matched, at which time the price was declared fixed.

Nevertheless, the LBMA Silver Price has several advantages

over the previous London silver fix.

IBA’s auction process is fully transparent in real-time to direct participants and

sponsored clients and, at the close of each auction, to the general public.

IBA’s auction process is also fully auditable

since an audit trail exists for every change made in the process.

Moreover, the audit trail and active surveillance of the auction

process by IBA, as well as the FCA’s oversight of IBA, deters manipulative and abusive conduct in establishing each day’s

LBMA Silver Price.

August 15, 2014, the Sponsor determined that the London silver fix, which ceased to be published as of that date, would be an

inappropriate basis 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 on a daily basis, and that the LBMA Silver Price is an appropriate alternative

for determining the value of the Trust’s silver each trading day.

The Sponsor also determined that the LBMA Silver Price

fairly represents the commercial value of silver bullion held by the Trust and that the “Benchmark Price” (as defined

in the Trust Agreement) as of any day is the LBMA Silver Price for such day.

most significant silver futures exchanges are the COMEX, a designated contract market within the CME Group, and the Tokyo Commodity Exchange (“TOCOM”).

Since April 1, 2015, the LBMA Silver Price has been regulated

by the Financial Conduct Authority (“FCA”) in the United Kingdom (“UK”).

IBA is authorized as a regulated

benchmark administrator by the FCA.

Under the UK benchmark regulation, the governance structure for a regulated benchmark must

include an Oversight Committee, made up of market participants, industry bodies, direct participant representatives, infrastructure

providers and the administrator (i.e., IBA).

Through the Oversight Committee the LBMA continues to have significant involvement

in the oversight of the auction process, including, among other matters, changes to the methodology and accreditation of direct

participants.

The price discovery process for the LBMA Silver Price is subject to surveillance by IBA.

IBA has been formally assessed

against the IOSCO Principles for Financial Benchmarks (the “IOSCO Principles”).

In order to meet the IOSCO Principles,

the price discovery used for the LBMA Silver Price benchmark is auditable and transparent.

The LBMA Silver Price is viewed as a full and fair representation

of all market interest at the conclusion of the auction.

IBA’s auction process is similar to CME Group’s auction process,

which in turn was similar to the non-electronic process previously used to establish the London silver fix where the London silver

fix process adjusted the silver price up or down until all the buy and sell orders are matched, at which time the price was declared

Nevertheless, the LBMA Silver Price has several advantages over the previous London silver fix.

IBA’s auction process

is fully transparent in real-time to direct participants and sponsored clients and, at the close of each auction, to the general

IBA’s auction process is also fully auditable since an audit trail exists for every change made in the process.

the audit trail and active surveillance of the auction process by IBA, as well as the FCA’s oversight of IBA, deters manipulative

and abusive conduct in establishing each day’s LBMA Silver Price.

Since August 15, 2014, the Sponsor determined that the London

silver fix, which ceased to be published as of that date, would be an inappropriate basis 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 on

a daily basis, and that the LBMA Silver Price is an appropriate alternative for determining the value of the Trust’s silver

each trading day.

The Sponsor also determined that the LBMA Silver Price fairly represents the commercial value of silver bullion

held by the Trust and that the “Benchmark Price” (as defined in the Trust Agreement) as of any day is the LBMA Silver

Price for such day.

Futures Exchanges

seek to provide a neutral, regulated marketplace for the trading of derivatives contracts for commodities.

Futures contracts are

defined by the exchange for each commodity.

For each commodity traded, this contract specifies the precise quality and quantity

The most significant silver futures exchanges are the COMEX,

a designated contract market within the CME Group, and the Tokyo Commodity Exchange (“TOCOM”).

Futures exchanges seek

to provide a neutral, regulated marketplace for the trading of derivatives contracts for commodities.

Futures contracts are defined

by the exchange for each commodity.

For each commodity traded, this contract specifies the precise quality and quantity standards.

The contract’s terms and conditions also define the location and timing of physical delivery.

exchange does not buy or sell those contracts, but seeks to offer a transparent forum where members, on their own behalf or on

the behalf of customers, can trade the contracts in a safe, efficient and orderly manner.

During regular trading hours at the

COMEX, the commodity contracts are traded on CME Globex system, an electronic auction in which all bids, offers and trades

must be publicly announced to all members and, upon execution, centrally cleared.

Electronic trading is offered by the exchange

almost 24 hours a day (except for a short break in the evening), six days a week.

addition to the public nature of the pricing, futures exchanges in the United States are regulated at two levels:

external governmental supervision.

The internal is performed through self-regulation and consists of regular monitoring of the

the central algorithmic matching process to ensure that it is conducted in conformance with all exchange rules;

orderly trading and settlement of futures and options;

the financial condition of all exchange member firms to ensure that they

continuously meet financial commitments;

and the volume positions of commercial and non-commercial customers to ensure that physical

delivery and other commercial commitments can be met, and that pricing is not being improperly affected by the size of any particular

customer positions.

External governmental oversight is performed by the CFTC, which reviews all the rules and regulations of United

States futures exchanges and clearing houses and monitors their enforcement.

global silver markets are overseen and regulated by both governmental and self-regulatory organizations.

In addition, certain

trade associations have established rules and protocols for market practices and participants.

In the UK, responsibility for

the regulation of the financial market participants, including the major participating members of the LBMA falls under the

authority of the FCA as provided by the Financial Services and Markets Act 2000 (“FSM Act”).

Under this act,

all UK-based banks, together with other investment firms, are subject to a range of requirements, including fitness and properness,

capital adequacy, liquidity, and systems and controls.

FCA is responsible for regulating investment products, including derivatives, and those who deal in investment products.

of spot, commercial forwards, and deposits of silver not covered by the FSM Act is provided for by The London Code of Conduct

for Non-Investment Products, which was established by market participants in conjunction with the Bank of England.

TOCOM has authority to perform financial and operational surveillance on its members’ trading activities, scrutinize positions

held by members and large-scale customers, and monitor the price movements of futures markets by comparing them with cash and

other derivative markets’ prices.

To act as a Futures Commission Merchant Broker on the TOCOM, a broker must obtain a license

from Japan’s Ministry of Economy, Trade and Industry (“METI”), the regulatory authority that oversees the operations

of the TOCOM.

US Commodity Futures Trading Commission (“CFTC”) regulates trading in commodity contracts, such as futures, options

In addition, under the Commodity Exchange Act (“CEA”), the CFTC has jurisdiction to prosecute manipulation

and fraud in any commodity (including precious metals) traded in interstate commerce as spot as well as deliverable forwards.

An exchange does not buy or sell those contracts, but seeks

to offer a transparent forum where members, on their own behalf or on the behalf of customers, can trade the contracts in a safe,

efficient and orderly manner.

During regular trading hours at the COMEX, the commodity contracts are traded on CME Globex system,

an electronic auction in which all bids, offers and trades must be publicly announced to all members and, upon execution,

centrally cleared.

Electronic trading is offered by the exchange almost 24 hours a day (except for a short break in the evening),

six days a week.

In addition to the public nature of the pricing, futures exchanges

in the United States are regulated at two levels:

internal and external governmental supervision.

The internal is performed through

self-regulation and consists of regular monitoring of the following:

the central algorithmic matching process to ensure that it

is conducted in conformance with all exchange rules;

the orderly trading and settlement of futures and options;

the financial condition

of all exchange member firms to ensure that they continuously meet financial commitments;

and the volume positions of commercial

and non-commercial customers to ensure that physical delivery and other commercial commitments can be met, and that pricing is

not being improperly affected by the size of any particular customer positions.

External governmental oversight is performed by

the CFTC, which reviews all the rules and regulations of United States futures exchanges and clearing houses and monitors their

Market Regulation

The global silver markets are overseen and regulated by

both governmental and self-regulatory organizations.

In addition, certain trade associations have established rules and protocols

for market practices and participants.

In the UK, responsibility for the regulation of the financial market participants, including

the major participating members of the LBMA falls under the authority of the FCA as provided by the Financial Services

and Markets Act 2000 (“FSM Act”).

Under this act, all UK-based banks, together with other investment firms, are subject

to a range of requirements, including fitness and properness, capital adequacy, liquidity, and systems and controls.

The FCA is responsible for regulating investment products, including

derivatives, and those who deal in investment products.

Regulation of spot, commercial forwards, and deposits of silver not

covered by the FSM Act is provided for by The London Code of Conduct for Non-Investment Products, which was established by market

participants in conjunction with the Bank of England.

The TOCOM has authority to perform financial and operational

surveillance on its members’ trading activities, scrutinize positions held by members and large-scale customers, and monitor

the price movements of futures markets by comparing them with cash and other derivative markets’ prices.

To act as a Futures

Commission Merchant Broker on the TOCOM, a broker must obtain a license from Japan’s Ministry of Economy, Trade and Industry, the regulatory authority that oversees the operations of the TOCOM.

The US Commodity Futures Trading Commission (“CFTC”)

regulates trading in commodity contracts, such as futures, options and swaps.

In addition, under the Commodity Exchange Act (“CEA”),

the CFTC has jurisdiction to prosecute manipulation and fraud in any commodity (including precious metals) traded in interstate

commerce as spot as well as deliverable forwards.

The CFTC is the exclusive regulator of U.S.

commodity exchanges and clearing houses.

Market Trading

the Trust’s investment objective is for the Shares to reflect the performance of silver bullion, less the expenses

of the Trust, the Shares may trade in the secondary market on the NYSE Arca at prices that are lower or higher relative to their

net asset value (the value of the Trust’s assets less its liabilities (“NAV”)) per Share.

The amount of the

discount or premium in the trading price relative to the NAV per Share may be influenced by non-concurrent trading hours between

the NYSE Arca, COMEX and the London silver markets.

While the Shares trade on the NYSE Arca until 4:00 PM New York time, liquidity

in the global silver market is reduced after the close of the COMEX at 1:30 PM New York time.

As a result, during this time,

trading spreads, and the resulting premium or discount, on the Shares may widen.

of Silver and Computation of Net Asset Value

each day that the NYSE Arca is open for regular trading, as promptly as practicable after 4:00 p.m., New York time,

on such day (“Evaluation Time”), the Trustee evaluates the silver held by the Trust and determines both the adjusted

net asset value (“ANAV”) and the NAV of the Trust.

the Evaluation Time, the Trustee values the Trust’s silver on the basis of that day’s “LBMA Silver Price”

(the daily price of an ounce of silver determined by an electronic, over-the-counter auction that starts at 12:00 noon London,

England time in which LBMA-accredited bullion banks or market makers participate), or, if no LBMA Silver Price is made

on such day, the next most recent LBMA Silver Price determined prior to the Evaluation Time will be used, unless the Sponsor

determines that such price is inappropriate as a basis for evaluation.

In the event the Sponsor determines that the LBMA Silver

Price or such other publicly available price as the Sponsor may deem fairly represents the commercial value of the Trust’s

silver is not an appropriate basis for evaluation of the Trust’s silver, it shall identify an alternative basis for such

evaluation to be employed by the Trustee.

Neither the Trustee nor the Sponsor shall be liable to any person for the determination

that the LBMA Silver Price or such other publicly available price is not appropriate as a basis for evaluation of the Trust’s

commodity exchanges and clearing

Secondary Market Trading

While the Trust’s

investment objective is for the Shares to reflect the performance of the price of physical silver, less the expenses of the

Trust, the Shares may trade in the secondary market on the NYSE Arca at prices that are lower or higher relative to their net asset

value (the value of the Trust’s assets less its liabilities (“NAV”)) per Share.

The amount of the discount or

premium in the trading price relative to the NAV per Share may be influenced by non-concurrent trading hours between the NYSE Arca,

COMEX and the London silver markets.

While the Shares trade on the NYSE Arca until 4:00 PM New York time, liquidity in the

global silver market is reduced after the close of the COMEX at 1:30 PM New York time.

As a result, during this time, trading

spreads, and the resulting premium or discount, on the Shares may widen.

Valuation of Silver and Computation of Net Asset Value

On each day that the NYSE Arca is open for regular trading,

as promptly as practicable after 4:00 p.m., New York time, on such day (“Evaluation Time”), the Trustee evaluates

the silver held by the Trust and determines both the adjusted net asset value (“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 “LBMA Silver Price” (the daily price of an ounce of silver determined by an

electronic, over-the-counter auction that starts at 12:00 noon London, England time in which LBMA-accredited bullion banks or

market makers participate), or, if no LBMA Silver Price is made on such day, or has not been announced by the Evaluation Time,

the next most recent LBMA Silver Price determined prior to the Evaluation Time will be used, unless the Sponsor determines

that such price is inappropriate as a basis for evaluation.

In the event the Sponsor determines that the LBMA Silver Price or

such other publicly available price as the Sponsor may deem fairly represents the commercial value of the Trust’s silver

is not an appropriate basis for evaluation of the Trust’s silver, it shall identify an alternative basis for such evaluation

to be employed by the Trustee.

Neither the Trustee nor the Sponsor shall be liable to any person for the determination that the

LBMA Silver Price or such other publicly available price is not appropriate as a basis for evaluation of the Trust’s

silver or for any determination as to the alternative basis for such evaluation provided that such determination is made in good

1 unchanged sentence

of the LBMA Silver Price.

the value of the silver has been determined, the Trustee subtracts all estimated accrued but unpaid fees (other than

the fees accruing for such day on which the valuation takes place which are computed by reference to the value of the Trust

or its assets), expenses and other liabilities of the Trust from the total value of the silver and any other assets

of the Trust.

Once the value of

the silver has been determined, the Trustee subtracts all estimated accrued but unpaid fees (other than the fees

accruing for such day on which the valuation takes place which are computed by reference to the value of the Trust or

its assets), expenses and other liabilities of the Trust from the total value of the silver and any other assets of

The resulting figure is the ANAV of the Trust.

The ANAV of the Trust is used to compute the Sponsor’s Fee.

fees accruing for the day on which the valuation takes place which are computed by reference to the value of the Trust or

its assets are calculated using the ANAV calculated for such day.

The Trustee subtracts from the ANAV the amount of accrued fees

so computed for such day and the resulting figure is the NAV of the Trust.

The Trustee also determines the NAV per Share

by dividing the NAV of the Trust by the number of the Shares outstanding as of the close of trading on the NYSE Arca (which includes

the net number of any Shares created or redeemed on such evaluation day).

estimate of the accrued but unpaid fees, expenses and liabilities of the Trust for purposes of computing the NAV of the Trust

and ANAV made by the Trustee in good faith shall be conclusive upon all persons interested in the Trust and no revision or correction

in any computation made under the Trust Agreement will be required by reason of any difference in amounts estimated from those

actually paid.

Sponsor and the Shareholders may rely on any evaluation furnished by the Trustee, and the Sponsor has no responsibility for the

evaluation’s accuracy.

The determinations the Trustee makes will be made in good faith upon the basis of, and the Trustee

will not be liable for any errors contained in, information reasonably available to it.

The Trustee will not be liable to the

Sponsor, DTC, Authorized Participants, the Shareholders or any other person for errors in judgment.

However, the preceding liability

exclusion will not protect the Trustee against any liability resulting from bad faith or gross negligence in the performance of

Trust’s only ordinary recurring expense is the Sponsor’s Fee.

In exchange for the Sponsor’s Fee, the Sponsor

has agreed to assume the following administrative and marketing expenses incurred by the Trust:

the Trustee’s monthly fee

and out-of-pocket expenses, the Custodian’s fee and reimbursement of the Custodian’s expenses under the Custody Agreements,

Exchange listing fees, SEC registration fees, printing and mailing costs, audit fees and up to $100,000 per annum in legal expenses.

Sponsor’s Fee accrues daily at an annualized rate equal to 0.45% of the ANAV of the Trust and is payable monthly in arrears.

The Sponsor, from time to time, may temporarily waive all or a portion of the Sponsor’s Fee at its discretion for a stated

The ANAV of the Trust is used to compute the Sponsor’s

All fees accruing for the day on which the valuation takes place

which are computed by reference to the value of the Trust or its assets are calculated using the ANAV calculated for such

The Trustee subtracts from the ANAV the amount of accrued fees so computed for such day and the resulting figure is the NAV

of the Trust.

The Trustee also determines the NAV per Share by dividing the NAV of the Trust by the number of the Shares outstanding

as of the close of trading on the NYSE Arca (which includes the net number of any Shares created or redeemed on such evaluation

Any estimate of the accrued but unpaid fees, expenses and liabilities of

the Trust for purposes of computing the NAV of the Trust and ANAV made by the Trustee in good faith shall be conclusive upon all

persons interested in the Trust and no revision or correction in any computation made under the Trust Agreement will be required

by reason of any difference in amounts estimated from those actually paid.

The Sponsor and the Shareholders may rely on any evaluation

furnished by the Trustee, and the Sponsor has no responsibility for the evaluation’s accuracy.

The determinations the Trustee

makes will be made in good faith upon the basis of, and the Trustee will not be liable for any errors contained in, information

reasonably available to it.

The Trustee will not be liable to the Sponsor, DTC, Authorized Participants, the Shareholders or any

other person for errors in judgment.

However, the preceding liability exclusion will not protect the Trustee against any liability

resulting from bad faith or gross negligence in the performance of its duties.

Trust Expenses

The Trust’s only ordinary recurring expense is the Sponsor’s

In exchange for the Sponsor’s Fee, the Sponsor has agreed to assume the following administrative and marketing expenses

incurred by the Trust:

the Trustee’s monthly fee and out-of-pocket expenses, the Custodian’s fee and reimbursement

of the Custodian’s expenses under the Custody Agreements, Exchange listing fees, SEC registration fees, printing and mailing

costs, audit fees and up to $100,000 per annum in legal expenses.

The Sponsor’s

Fee accrues daily at an annualized rate equal to 0.45% of the ANAV of the Trust and is payable monthly in arrears.

Sponsor, from time to time, may temporarily waive all or a portion of the Sponsor’s Fee at its discretion for a stated

period of time.

Currently, this is being done on an annual basis.

The Sponsor has decided to waive a portion of the Sponsor’s

Fee to reduce the Sponsor’s Fee to 0.30%.

This fee waiver has been in existence since the Trust was formed.

Presently, the

Sponsor is continuing to waive a portion of its fee and reduce the Sponsor’s fee to 0.30%.

In the future, the Sponsor may

continue its fee waiver, waive a larger or smaller portion of its fee or not renew its fee waiver.

If, at any point in the future,

the Sponsor does not continue its partial fee waiver, the full Sponsor’s Fee will accrue and be paid to the Sponsor for

subsequent periods.

The Sponsor is under no obligation to continue to waive all or part of the Sponsor’s Fee on an ongoing

Sponsor’s Fee is paid by delivery of silver to an account maintained by the Custodian for the Sponsor on an unallocated

basis, monthly on the first business day of the month in respect of fees payable for the prior month.

The delivery is of that

number of ounces of silver which equals the daily accrual of the Sponsor’s Fee for such prior month calculated at the LBMA

Silver Price.

Trustee will, when directed by the Sponsor, and, in the absence of such direction, may, in its discretion, sell silver in such

quantity and at such times as may be necessary to permit payment in cash of Trust expenses not assumed by the Sponsor.

is authorized to sell silver at such times and in the smallest amounts required to permit such payments as they become due, it

being the intention to avoid or minimize the Trust’s holdings of assets other than silver.

Accordingly, the amount of silver

to be sold will vary from time to time depending on the level of the Trust’s expenses and the market price of silver.

Custodian has agreed to purchase from the Trust, at the request of the Trustee, silver needed to cover Trust expenses not assumed

by the Sponsor at a price at least equal to the price used by the Trustee to determine the value of the silver held by the Trust

on the date of the sale.

Sponsor’s Fee, net of waiver, for the year ended December 31, 2022 was $3,061,148 (December 31, 2021:

held by the Trustee pending payment of the Trust’s expenses will not bear any interest.

Each delivery or sale of silver by

the Trust to pay the Sponsor’s Fee or other Trust expenses will be a taxable event to Shareholders.

and Redemption of Shares

Trust creates and redeems Shares from time to time, but only in one or more Baskets of 50,000 Shares.

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.

Participants are the only persons that may place orders to create and redeem Baskets.

Authorized Participants must be (1) registered

broker-dealers or other securities market participants, such as banks and other financial institutions, which are not required

to register as broker-dealers to engage in securities transactions, and (2) participants in DTC.

To become an Authorized Participant,

a person must enter into an Authorized Participant Agreement with the Sponsor and the Trustee.

The Authorized Participant Agreement

provides the procedures for the creation and redemption of Baskets and for the delivery of the silver and any cash required

for such creations and redemptions.

The Authorized Participant Agreement and the related procedures attached thereto may be amended

by the Trustee and the Sponsor, without the consent of any Shareholder or Authorized Participant.

Authorized Participants pay

a transaction fee of $500 to the Trustee for each order they place to create or redeem one or more Baskets.

Authorized Participants

who make deposits with the Trust in exchange for Baskets receive no fees, commissions or other form of compensation or inducement

of any kind from either the Sponsor or the Trust for serving as an Authorized Participant, and no such person has any obligation

or responsibility to the Sponsor or the Trust to effect any sale or resale of Shares.

Participants are cautioned that some of their activities will result in their being deemed participants in a distribution in a

manner which would render them statutory underwriters and subject them to the prospectus-delivery and liability provisions of

the Securities Act.

to initiating any creation or redemption order, an Authorized Participant must have entered into an agreement with the Custodian

or a silver clearing bank to establish an Authorized Participant Unallocated Account in London or Zurich (“Authorized

Participant Unallocated Bullion Account Agreement”).

Silver held in Authorized Participant Unallocated Accounts is

typically not segregated from the Custodian’s or other silver clearing bank’s assets, as a consequence of which

an Authorized Participant will have no proprietary interest in any specific bars of silver held by the Custodian or the

clearing bank.

Credits to its Authorized Participant Unallocated Account are therefore at risk of the Custodian’s or other silver

clearing bank’s insolvency.

No fees will be charged by the Custodian for the use of the Authorized Participant Unallocated

Account as long as the Authorized Participant Unallocated Account is used solely for silver transfers to and from the Trust

Unallocated Account and the Custodian (or one of its affiliates) receives compensation for maintaining the Trust Allocated Account.

Authorized Participants should be aware that the Custodian’s liability threshold under the Authorized Participant Unallocated

Bullion Account Agreement is generally gross negligence, not negligence, which is the Custodian’s liability threshold under

the Trust’s Custody Agreements.

the terms of the Authorized Participant Unallocated Bullion Account Agreement differ in certain respects from the terms of the

Trust’s Unallocated Account Agreement, potential Authorized Participants should review the terms of the Authorized Participant

Unallocated Bullion Account Agreement carefully.

A copy of the Authorized Participant Agreement may be obtained by potential Authorized

Participants from the Trustee.

Authorized Participants are expected to have the facility to participate directly in the physical silver market and the silver

futures markets.

In some cases, an Authorized Participant may from time to time acquire silver from or sell silver to

its affiliated silver trading desk, which may profit in these instances.

Each Authorized Participant must be registered as

a broker-dealer under the Securities Exchange Act of 1934 (“Exchange Act”) and regulated by FINRA or be exempt from

being or otherwise not be required to be so regulated or registered, and must be qualified to act as a broker or dealer in

the states or other jurisdictions where the nature of its business so requires.

Certain Authorized Participants are regulated

under federal and state banking laws and regulations.

Each Authorized Participant has its own set of rules and procedures, internal

controls and information barriers as it determines is appropriate in light of its own regulatory regime.

Participants may act for their own accounts or as agents for broker-dealers, custodians and other securities market participants

that wish to create or redeem Baskets.

An order for one or more Baskets may be placed by an Authorized Participant on behalf of

multiple clients.

As of the date of this report, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co.

LLC, HSBC Securities

(USA) Inc., J.P.

Morgan Securities LLC, Merrill Lynch Professional Clearing Corp., Mizuho Securities USA LLC, Morgan Stanley

LLC, Scotia Capital (USA) Inc., UBS Securities LLC and Virtu Americas, LLC have each signed an Authorized

Participant Agreement with the Trust and, upon the effectiveness of such agreement, may create and redeem Baskets as described

Persons interested in purchasing Baskets should contact the Sponsor or the Trustee to obtain the contact information for

the Authorized Participants.

Shareholders who are not Authorized Participants are only able to redeem their Shares through an

Authorized Participant.

All silver will

be delivered to the Trust and distributed by the Trust in unallocated form through credits and debits between Authorized

Participant Unallocated Accounts and the Trust Unallocated Account.

Silver transferred from an Authorized Participant Unallocated

Account to the Trust in unallocated form will first be credited to the Trust Unallocated Account.

Thereafter, the Custodian will

allocate, or cause the allocation by the Zurich Sub-Custodian of, specific bars of silver representing the amount of silver

credited to the Trust Unallocated Account (to the extent such amount is representable by whole silver bars) to the Trust

Allocated Account.

The movement of silver is reversed for the distribution of silver to an Authorized Participant in connection

with the redemption of Baskets.

physical silver represented by a credit to any Authorized Participant Unallocated Account and to the Trust Unallocated Account

and all physical silver held in the Trust Allocated Account with the Custodian must be of at least a minimum fineness (or purity)

of 995 parts per 1,000 (99.5%) and otherwise conform to the rules, regulations practices and customs of the LBMA, including the

specifications for a Silver Good Delivery Bar.

the Authorized Participant Agreement, the Sponsor has agreed to indemnify the Authorized Participants against certain liabilities,

including liabilities under the Securities Act.

following description of the procedures for the creation and redemption of Baskets is only a summary and an investor should refer

to the relevant provisions of the Trust Agreement and the form of Authorized Participant Agreement for more detail.

any business day, an Authorized Participant may place an order with the Trustee to create one or more Baskets.

The Sponsor has voluntarily waived a portion of the

Sponsor’s Fee to reduce the Sponsor’s Fee to 0.30% of the ANAV of the Trust through February 28, 2027.

waiver has been in existence since the Trust was formed.

Although the Sponsor has no current intention of doing so, because the fee waiver is voluntary, the Sponsor may revert to

the 0.45% fee prior to February 28, 2027.

Should the Sponsor choose to revert to the 0.45% fee (or an amount higher than 0.30%

but no greater than 0.45% annualized), prior to February 28, 2027, it will provide Shareholders with at least 30 days’ prior

written notice of such change through either a prospectus supplement to its registration statement or through a report furnished

See “Description of the Trust Agreement - Amendments.” In the future, the Sponsor may continue its

fee waiver, waive a larger or smaller portion of its fee or discontinue its fee waiver.

If, at any point in the future, the

Sponsor does not continue its partial fee waiver, the full Sponsor’s Fee will accrue and be paid to the Sponsor for subsequent

The Sponsor is under no obligation to continue to waive all or part of the Sponsor’s Fee on an ongoing basis.

the Sponsor may, in its sole discretion, agree to rebate all or a portion of the Sponsor’s Fee attributable to Shares held

by certain institutional investors subject to minimum shareholding and lock up requirements as determined by the Sponsor to

foster stability in the Trust’s asset levels.

Any such rebate will be subject to negotiation and written agreement between

the Sponsor and the investor on a case-by-case basis.

The Sponsor is under no obligation to provide any rebates of the Sponsor’s

Neither the Trust nor the Trustee will be a party to any Sponsor’s Fee rebate arrangements negotiated by the Sponsor.

Any Sponsor’s Fee rebate shall be paid by the Sponsor and not from the assets of the Trust.

The Sponsor’s Fee is paid by delivery of silver to an

account maintained by the Custodian for the Sponsor on an unallocated basis, monthly on the first business day of the month in

respect of fees payable for the prior month.

The delivery is of that number of ounces of silver which equals the daily accrual

of the Sponsor’s Fee for such prior month calculated at the LBMA Silver Price.

The Trustee will, when directed by the Sponsor, and, in the

absence of such direction, may, in its discretion, sell silver in such quantity and at such times as may be necessary to permit

payment in cash of Trust expenses not assumed by the Sponsor.

The Trustee is authorized to sell silver at such times and in the

smallest amounts required to permit such payments as they become due, it being the intention to avoid or minimize the Trust’s

holdings of assets other than silver.

Accordingly, the amount of silver to be sold will vary from time to time depending on the

level of the Trust’s expenses and the market price of silver.

The Custodian has agreed to purchase from the Trust, at the

request of the Trustee, silver needed to cover Trust expenses not assumed by the Sponsor at a price at least equal to the price

used by the Trustee to determine the value of the silver held by the Trust on the date of the sale.

The Sponsor’s Fee, net of waiver, for the year ended December

31, 2023 was $3,247,514 (December 31, 2022 was $3,061,148;

December 31, 2021 was $2,968,351).

Cash held by the Trustee

pending payment of the Trust’s expenses will not bear any interest.

Each delivery or sale of silver by the Trust

to pay the Sponsor’s Fee or other Trust expenses will be a taxable event to Shareholders.

See “United States

Federal Income Tax Consequences - Taxation of US Shareholders.”

Creation and Redemption of Shares

The Trust creates and redeems Shares from time to time, but

only in one or more Baskets of 50,000 Shares.

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 physical 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 are the only persons that may place

orders to create and redeem Baskets.

Authorized Participants must be (1) registered broker-dealers or other securities market participants,

such as banks and other financial institutions, which are not required to register as broker-dealers to engage in securities

transactions, and (2) participants in DTC.

To become an Authorized Participant, a person must enter into an Authorized Participant

Agreement with the Sponsor and the Trustee.

The Authorized Participant Agreement provides the procedures for the creation and redemption

of Baskets and for the delivery of silver and any cash required for such creations and redemptions.

The Authorized Participant

Agreement and the related procedures attached thereto may be amended by the Trustee and the Sponsor, without the consent of any

Shareholder or Authorized Participant.

Authorized Participants pay a transaction fee of $500 to the Trustee for each order they

place to create or redeem one or more Baskets.

Authorized Participants who make deposits with the Trust in exchange for Baskets

receive no fees, commissions or other form of compensation or inducement of any kind from either the Sponsor or the Trust for serving

as an Authorized Participant, and no such person has any obligation or responsibility to the Sponsor or the Trust to effect any

sale or resale of Shares.

Authorized Participants are cautioned that some of their activities

will result in their being deemed participants in a distribution in a manner which would render them statutory underwriters and

subject them to the prospectus-delivery and liability provisions of the Securities Act.

Prior to initiating any creation or redemption order, an Authorized

Participant must have entered into an agreement with the Custodian or a silver clearing bank to establish an Authorized Participant

Unallocated Account in London or Zurich (“Authorized Participant Unallocated Bullion Account Agreement”).

held in Authorized Participant Unallocated Accounts is typically not segregated from the Custodian’s or other silver

clearing bank’s assets, as a consequence of which an Authorized Participant will have no proprietary interest in any specific bars

of silver held by the Custodian or the clearing bank.

Credits to its Authorized Participant Unallocated Account are therefore

at risk of the Custodian’s or other silver clearing bank’s insolvency.

No fees will be charged by the Custodian

for the use of the Authorized Participant Unallocated Account as long as the Authorized Participant Unallocated Account is used

solely for silver transfers to and from the Trust Unallocated Account and the Custodian (or one of its affiliates) receives

compensation for maintaining the Trust Allocated Account.

Authorized Participants should be aware that the Custodian’s liability

threshold under the Authorized Participant Unallocated Bullion Account Agreement is generally gross negligence, not negligence,

which is the Custodian’s liability threshold under the Trust’s Custody Agreements.

As the terms of the Authorized Participant Unallocated Bullion

Account Agreement differ in certain respects from the terms of the Trust’s Unallocated Account Agreement, potential Authorized

Participants should review the terms of the Authorized Participant Unallocated Bullion Account Agreement carefully.

A copy of the

Authorized Participant Agreement may be obtained by potential Authorized Participants from the Trustee.

Certain Authorized Participants are expected to have the facility

to participate directly in the physical silver market and the silver futures markets.

In some cases, an Authorized Participant

may from time to time acquire silver from or sell silver to its affiliated silver trading desk, which may profit

in these instances.

Each Authorized Participant must be registered as a broker-dealer under the Securities Exchange Act of 1934

(“Exchange Act”) and regulated by FINRA or be exempt from being or otherwise not be required to be so regulated or registered,

and must be qualified to act as a broker or dealer in the states or other jurisdictions where the nature of its business so

Certain Authorized Participants are regulated under federal and state banking laws and regulations.

Each Authorized Participant

has its own set of rules and procedures, internal controls and information barriers as it determines is appropriate in light of

its own regulatory regime.

Authorized Participants may act for their own accounts or as

agents for broker-dealers, custodians and other securities market participants that wish to create or redeem Baskets.

for one or more Baskets may be placed by an Authorized Participant on behalf of multiple clients.

As of the date of this report,

Goldman Sachs & Co., HSBC Securities (USA) Inc., J.P.

Morgan Securities LLC, Merrill Lynch Professional Clearing Corp.,

Mizuho Securities USA LLC, Morgan Stanley & Co.

LLC, Scotia Capital (USA) Inc., UBS Securities LLC and Virtu Americas,

LLC have each signed an Authorized Participant Agreement with the Trust and, upon the effectiveness of such agreement, may create

and redeem Baskets as described above.

Persons interested in purchasing Baskets should contact the Sponsor or the Trustee to obtain

the contact information for the Authorized Participants.

Shareholders who are not Authorized Participants are only able to

redeem their Shares through an Authorized Participant.

All silver will be delivered to the Trust and

distributed by the Trust in unallocated form through credits and debits between Authorized Participant Unallocated Accounts and

the Trust Unallocated Account.

Silver transferred from an Authorized Participant Unallocated Account to the Trust in unallocated

form will first be credited to the Trust Unallocated Account.

Thereafter, the Custodian will allocate, or cause the allocation

by the Zurich Sub-Custodian of, specific bars of silver representing the amount of silver credited to the Trust Unallocated

Account (to the extent such amount is representable by whole silver bars) to the Trust Allocated Account.

The movement of silver

is reversed for the distribution of silver to an Authorized Participant in connection with the redemption of Baskets.

All physical silver represented by a credit to any Authorized

Participant Unallocated Account and to the Trust Unallocated Account and all physical silver held in the Trust Allocated Account

with the Custodian must be of at least a minimum fineness (or purity) of 995 parts per 1,000 (99.5%) and otherwise conform to the

rules, regulations practices and customs of the LBMA, including the specifications for a Silver Good Delivery Bar.

Under the Authorized

Participant Agreement, the Sponsor has agreed to indemnify the Authorized Participants against certain liabilities, including

liabilities under the Securities Act.

The following description of the procedures for the creation

and redemption of Baskets is only a summary and an investor should refer to the relevant provisions of the Trust Agreement and

the form of Authorized Participant Agreement for more detail.

Creation Procedures

On any business

day, an Authorized Participant may place an order with the Trustee to create one or more Baskets.

Creation and redemption

orders are accepted on “business days” the NYSE Arca is open for regular trading.

Settlements of such orders requiring

receipt or delivery, or confirmation of receipt or delivery, of silver in the UK, Zurich or another jurisdiction will occur on

“business days” when (1) banks in the UK or another jurisdiction and (2) the London silver markets are regularly open

for business.

If such banks or the London silver markets are not open for regular business for a full day, such a day will only

be a “business day” for settlement purposes if the settlement procedures can be completed by the end of such day.

Settlement of orders requiring receipt or delivery, or confirmation of receipt or delivery, of Shares will occur, after confirmation

of the applicable silver delivery, on “business days” when the NYSE Arca is open for regular trading.

of a level 3 market-wide circuit breaker resulting in a trading halt for the remainder of the trading day, the time of the market-wide

trading halt is considered the close of regular trading and no creation orders for the current trade date will be accepted after

that time (the “cutoff”).

Orders placed after the cutoff will be deemed to be rejected and will not be processed.

orders are accepted on “ business days ” the

NYSE Arca is open for regular trading.

Settlements of such orders requiring receipt or delivery, or confirmation of receipt

or delivery, of silver in the UK, Zurich or another jurisdiction will occur on “business days” when (1) banks in

the UK or another jurisdiction and (2) the London silver markets are regularly open for business.

If such banks or the London

silver markets are not open for regular business for a full day, such a day will only be a “business day” for

settlement purposes if the settlement procedures can be completed by the end of such day.

Settlement of orders requiring

receipt or delivery, or confirmation of receipt or delivery, of Shares will occur, after confirmation of the applicable

silver delivery, on “business days” when the NYSE Arca is open for regular trading.

In the event of a level 3

market-wide circuit breaker resulting in a trading halt for the remainder of the trading day, the time of the market-wide

trading halt is considered the close of regular trading and no creation orders for the current trade date will be accepted

after that time (the “cutoff”).

Orders placed after the cutoff will be deemed to be rejected and will not be

Orders should be placed in proper form on the following business day.

Purchase orders must be placed no later than 3:59:59 p.m.

Purchase orders must be placed no later than

on each business day the NYSE Arca is open for regular trading.

placing a purchase order, an Authorized Participant agrees to deposit silver with the Trust.

Prior to the delivery of Baskets

for a purchase order, the Authorized Participant must also have wired to the Trustee the non-refundable transaction fee due for

the purchase order.

Determination

of required deposits

amount of silver in the required deposit is determined by dividing the number of ounces of silver held by the Trust by the number

of Baskets outstanding, as adjusted for the amount of silver constituting estimated accrued but unpaid fees and expenses of the

purchase order, an Authorized Participant agrees to deposit silver with the Trust.

Prior to the delivery of Baskets for a

purchase order, the Authorized Participant must also have wired to the Trustee the non-refundable transaction fee due for the

purchase order.

Determination of required deposits

The amount of

silver in the required deposit is determined by dividing the number of ounces of silver held by the Trust by the number of

Baskets outstanding, as adjusted for the amount of silver constituting estimated accrued but unpaid fees and expenses of the

Fractions of a fine ounce of silver smaller than 0.001 of a fine ounce which are included in the silver deposit amount

are disregarded in the foregoing calculation.

All questions as to the composition of a Creation Basket Deposit will be finally

determined by the Trustee.

The Trustee’s determination of the Creation Basket Deposit shall be final and binding on all

persons interested in the Trust.

of required deposits

All questions as to the composition of a Creation Basket Deposit will be

finally determined by the Trustee.

The Trustee’s determination of the Creation Basket Deposit shall be final and

binding on all persons interested in the Trust.

Delivery of required deposits

Authorized Participant who places a purchase order is responsible for crediting its Authorized Participant Unallocated Account

5 unchanged sentences

the Authorized Participant ’ s DTC account.

The expense and risk of delivery, ownership and safekeeping of silver until such

silver has been received by the Trust shall be borne solely by the Authorized Participant.

The Trustee may accept delivery of

silver by such other means as the Sponsor, from time to time, may determine with the Trustee to be acceptable for the Trust, provided

that the same is disclosed in a prospectus relating to the Trust filed with the SEC pursuant to Rule 424 under the Securities

If silver is to be delivered other than as described above, the Sponsor is authorized to establish such procedures and to

appoint such custodians and establish such custody accounts in addition to those described in this report, as the Sponsor determines

to be desirable.

on standing instructions given by the Trustee, the Custodian will transfer the silver deposit amount from the Trust Unallocated

Account to the Trust Allocated Account by transferring silver bars from its inventory to the Trust Allocated Account.

The Custodian

uses commercially reasonable efforts to complete the transfer of silver to the Trust Allocated Account prior to the time by which

the Trustee is to credit the Basket to the Authorized Participant’s DTC account;

if, however, such transfers have not been

completed by such time, the number of Baskets ordered will be delivered against receipt of the silver deposit amount in the Trust

Unallocated Account, and all Shareholders will be exposed to the risks of unallocated silver to the extent of that silver deposit

amount until the Custodian completes the allocation process or a Zurich Sub-Custodian completes the allocation process for the

See “Risk Factors—silver held in the Trust’s unallocated silver account and any Authorized Participant’s

unallocated silver account will not be segregated from the Custodian’s assets....”

silver is allocated only in multiples of whole bars, the amount of silver allocated from the Trust Unallocated Account to the

Trust Allocated Account may be less than the total fine ounces of silver credited to the Trust Unallocated Account.

The expense and

risk of delivery, ownership and safekeeping of silver until such silver has been received by the Trust shall be borne solely by

the Authorized Participant.

The Trustee may accept delivery of silver by such other means as the Sponsor, from time to time, may

determine with the Trustee to be acceptable for the Trust, provided that the same is disclosed in a prospectus relating to the

Trust filed with the SEC pursuant to Rule 424 under the Securities Act.

If silver is to be delivered other than as described above,

the Sponsor is authorized to establish such procedures and to appoint such custodians and establish such custody accounts in addition

to those described in this report, as the Sponsor determines to be desirable.

Acting on standing instructions

given by the Trustee, the Custodian will transfer the silver deposit amount from the Trust Unallocated Account to the Trust Allocated

Account by transferring silver bars from its inventory to the Trust Allocated Account.

The Custodian uses commercially reasonable

efforts to complete the transfer of silver to the Trust Allocated Account prior to the time by which the Trustee is to credit

the Basket to the Authorized Participant’s DTC account;

if, however, such transfers have not been completed by such time,

the number of Baskets ordered will be delivered against receipt of the silver deposit amount in the Trust Unallocated Account,

and all Shareholders will be exposed to the risks of unallocated silver to the extent of that silver deposit amount until the

Custodian completes the allocation process or a Zurich Sub-Custodian completes the allocation process for the Custodian.

Factors-silver held in the Trust’s unallocated silver account and any Authorized Participant’s unallocated silver account

will not be segregated from the Custodian’s assets....

Because silver is

only allocated in multiples of whole bars, the amount of silver allocated from the Trust Unallocated Account to the Trust

Allocated Account may be less than the total fine ounces of silver credited to the Trust Unallocated Account.

will be held in the Trust Unallocated Account.

The Custodian uses commercially reasonable efforts to minimize the amount of silver

held in the Trust Unallocated Account;

no more than 430 troy ounces of silver (maximum weight to make one Silver Good Delivery

Bar) is expected to be held in the Trust Unallocated Account at the close of each business day.

of purchase orders

Trustee may reject a purchase order or a Creation Basket Deposit if such order or Creation Basket Deposit is not presented in

proper form as described in the Authorized Participant Agreement or if the fulfillment of the order, in the opinion of counsel,

might be unlawful.

None of the Trustee, the Sponsor or the Custodian will be liable for the rejection of any purchase order or

Creation Basket Deposit.

procedures by which an Authorized Participant can redeem one or more Baskets will mirror the procedures for the creation of Baskets.

On any business day, an Authorized Participant may place an order with the Trustee to redeem one or more Baskets.

Redemption orders

must be placed no later than 3:59:59 p.m.

The Custodian uses commercially reasonable efforts to minimize the amount of

silver held in the Trust Unallocated Account;

no more than 1,100 troy ounces of silver (maximum weight to make one Silver Good

Delivery Bar) is expected to be held in the Trust Unallocated Account at the close of each business day.

Rejection of purchase orders

The Trustee may reject

a purchase order or a Creation Basket Deposit if such order or Creation Basket Deposit is not presented in proper form as described

in the Authorized Participant Agreement or if the fulfillment of the order, in the opinion of counsel, might be unlawful.

of the Trustee, the Sponsor or the Custodian will be liable for the rejection of any purchase order or Creation Basket Deposit.

Redemption Procedures

The procedures by which

an Authorized Participant can redeem one or more Baskets will mirror the procedures for the creation of Baskets.

On any business

day, an Authorized Participant may place an order with the Trustee to redeem one or more Baskets.

Redemption orders must be placed

no later than 3:59:59 p.m.

on each business day the NYSE Arca is open for regular trading.

In the event of a level

3 market-wide circuit breaker resulting in a trading halt for the remainder of the trading day, the time of the market-wide trading

halt is considered the close of regular trading and no redemption orders for the current trade date will be accepted after that

time (the “cutoff”).

In the event of a level 3 market-wide

circuit breaker resulting in a trading halt for the remainder of the trading day, the time of the market-wide trading halt is

considered the close of regular trading and no redemption orders for the current trade date will be accepted after that time (the

Orders placed after the cutoff will be deemed to be rejected and will not be processed.

should be placed in proper form on the following business day.

A redemption order so received is effective on the date it is received

in satisfactory form by the Trustee.

Orders should be

placed in proper form on the following business day.

A redemption order so received is effective on the date it is received in

satisfactory form by the Trustee.

The redemption procedures allow Authorized Participants to redeem Baskets and do not entitle

an individual Shareholder to redeem any Shares in an amount less than a Basket, or to redeem Baskets other than through an Authorized

placing a redemption order, an Authorized Participant agrees to deliver the Baskets to be redeemed through DTC’s book entry

system to the Trust not later than the second business day following the effective date of the redemption order.

delivery of the redemption distribution for a redemption order, the Authorized Participant must also have wired to the Trustee

the non-refundable transaction fee due for the redemption order.

Determination

of redemption distribution

redemption distribution from the Trust consists of a credit to the redeeming Authorized Participant’s Authorized Participant

Unallocated Account representing the amount of the silver held by the Trust evidenced by the Shares being redeemed.

of a fine ounce of silver included in the redemption distribution smaller than 0.001 of a fine ounce are disregarded.

distributions will be subject to the deduction of any applicable tax or other governmental charges which may be due.

of redemption distribution

redemption distribution due from the Trust will be delivered to the Authorized Participant on or before the fifth business day

following a loco London redemption order date if, by 10:00 a.m.

New York time on the second business day after the loco London

redemption order date, the Trustee’s DTC account has been credited with the Baskets to be redeemed.

If a loco swap or physical

transfer is necessary to effect a loco London redemption, the redemption distribution due from the Trust will be delivered to

the Authorized Participant on or before the fifth business day following such a loco London redemption order date if, by 10:00

New York time on the second business day after the loco London redemption order date, the Trustee’s DTC account has

been credited with the Baskets to be redeemed.

By placing a redemption

order, an Authorized Participant agrees to deliver the Baskets to be redeemed through DTC’s book entry system to the Trust

not later than the second business day following the effective date of the redemption order.

Prior to the delivery of the redemption

distribution for a redemption order, the Authorized Participant must also have wired to the Trustee the non-refundable transaction

fee due for the redemption order.

Determination of redemption distribution

The redemption distribution

from the Trust consists of a credit to the redeeming Authorized Participant’s Authorized Participant Unallocated Account

representing the amount of the silver held by the Trust evidenced by the Shares being redeemed.

Fractions of a fine ounce of silver

included in the redemption distribution smaller than 0.001 of a fine ounce are disregarded.

Redemption distributions will be subject

to the deduction of any applicable tax or other governmental charges which may be due.

Delivery of redemption distribution

The redemption distribution

due from the Trust will be delivered to the Authorized Participant on or before the fifth business day following a loco London

redemption order date if, by 10:00 a.m.

New York time on the second business day after the loco London redemption order date,

the Trustee’s DTC account has been credited with the Baskets to be redeemed.

If a loco swap or physical transfer is necessary

to effect a loco London redemption, the redemption distribution due from the Trust will be delivered to the Authorized Participant

on or before the fifth business day following such a loco London redemption order date if, by 10:00 a.m.

New York time on the

second business day after the loco London redemption order date, the Trustee’s DTC account has been credited with the Baskets

to be redeemed.

In the event that, by 10:00 a.m.

New York time on the second business day following

the order date of a redemption order, the Trustee’s DTC account has not been credited with the total number of Shares corresponding

to the total number of Baskets to be redeemed pursuant to such redemption order, the Trustee shall send to the Authorized Participant

and the Custodian via fax or electronic mail message notice of such fact and the Authorized Participant shall have two business

days following receipt of such notice to correct such failure.

If such failure is not cured within such two business day period,

the Trustee (in consultation with the Sponsor) will cancel such redemption order and will send via fax or electronic mail message

notice of such cancellation to the Authorized Participant and the Custodian, and the Authorized Participant will be solely responsible

for all costs incurred by the Trust, the Trustee or the Custodian related to the cancelled order.

The Trustee is also authorized

to deliver the redemption distribution notwithstanding that the Baskets to be redeemed are not credited to the Trustee’s

DTC account by 10:00 a.m.

New York time on the second business day following the redemption order date if the Authorized Participant

has collateralized its obligation to deliver the Baskets through DTC’s book entry system on such terms as the Sponsor and

the Trustee may from time to time agree upon.

Custodian transfers the redemption silver amount from the Trust Allocated Account to the Trust Unallocated Account and, thereafter,

to the redeeming Authorized Participant’s Authorized Participant Unallocated Account.

The Authorized Participant and the

Trust are each at risk in respect of silver credited to their respective unallocated accounts in the event of the Custodian’s

See “Risk Factors—Silver held in the Trust’s unallocated silver account and any Authorized Participant’s

unallocated silver account is not segregated from the Custodian’s assets....”

with the allocation of silver to the Trust Allocated Account which occurs upon a purchase order, if in transferring silver from

the Trust Allocated Account to the Trust Unallocated Account in connection with a redemption order there is an excess amount of

silver transferred to the Trust Unallocated Account, the excess over the silver redemption amount will be held in the Trust Unallocated

New York time on the second business day following the order date of a redemption

order, the Trustee’s DTC account has not been credited with the total number of Shares corresponding to the total number

of Baskets to be redeemed pursuant to such redemption order, the Trustee shall send to the Authorized Participant and the Custodian

via fax or electronic mail message notice of such fact and the Authorized Participant shall have two business days following receipt

of such notice to correct such failure.

If such failure is not cured within such two business day period, the Trustee (in consultation

with the Sponsor) will cancel such redemption order and will send via fax or electronic mail message notice of such cancellation

to the Authorized Participant and the Custodian, and the Authorized Participant will be solely responsible for all costs incurred

by the Trust, the Trustee or the Custodian related to the cancelled order.

The Trustee is also authorized to deliver the redemption

distribution notwithstanding that the Baskets to be redeemed are not credited to the Trustee’s DTC account by 10:00 a.m.

New York time on the second business day following the redemption order date if the Authorized Participant has collateralized

its obligation to deliver the Baskets through DTC’s book entry system on such terms as the Sponsor and the Trustee may from

time to time agree upon.

The Custodian transfers

the redemption silver amount from the Trust Allocated Account to the Trust Unallocated Account and, thereafter, to the redeeming

Authorized Participant’s Authorized Participant Unallocated Account.

The Authorized Participant and the Trust are each at

risk in respect of silver credited to their respective unallocated accounts in the event of the Custodian’s insolvency.

See “Risk Factors – Silver

held in the Trust’s unallocated silver account and any Authorized Participant’s unallocated silver account is not segregated

from the Custodian’s assets....”

As with the allocation

of silver to the Trust Allocated Account which occurs upon a purchase order, if in transferring silver from the Trust Allocated

Account to the Trust Unallocated Account in connection with a redemption order there is an excess amount of silver transferred

to the Trust Unallocated Account, the excess over the silver redemption amount will be held in the Trust Unallocated Account.

The Custodian uses commercially reasonable efforts to minimize the amount of silver held in the Trust Unallocated Account;

no more than 1,100 ounces of silver (maximum weight to make one Silver Good Delivery Bar) is expected to be held in the Trust

Unallocated Account at the close of each business day.

or rejection of redemption orders

Trustee may, in its discretion, and will when directed by the Sponsor, suspend the right of redemption, or postpone the redemption

settlement date, (1) for any period during which the NYSE Arca is closed other than customary weekend or holiday closings, or

trading on the NYSE Arca is suspended or restricted or (2) for any period during which an emergency exists as a result of which

delivery, disposal or evaluation of silver is not reasonably practicable.

None of the Sponsor, the Trustee or the Custodian are

liable to any person or in any way for any loss or damages that may result from any such suspension or postponement.

Trustee will reject a redemption order if the order is not in proper form as described in the Authorized Participant Agreement

or if the fulfillment of the order, in the opinion of its counsel, might be unlawful.

and Redemption Transaction Fe e

compensate the Trustee for services in processing the creation and redemption of Baskets, an Authorized Participant is required

to pay a transaction fee to the Trustee of $500 per order to create or redeem Baskets.

more than 1,100 ounces of silver (maximum weight to make one Silver Good Delivery Bar) is expected to be held in the Trust Unallocated

Account at the close of each business day.

Suspension or rejection of redemption orders

The Trustee may, in its discretion, and will when directed by

the Sponsor, suspend the right of redemption, or postpone the redemption settlement date, (1) for any period during which the NYSE

Arca is closed other than customary weekend or holiday closings, or trading on the NYSE Arca is suspended or restricted or (2)

for any period during which an emergency exists as a result of which delivery, disposal or evaluation of silver is not reasonably

None of the Sponsor, the Trustee or the Custodian are liable to any person or in any way for any loss or damages that

may result from any such suspension or postponement.

The Trustee will reject

a redemption order if the order is not in proper form as described in the Authorized Participant Agreement or if the fulfillment

of the order, in the opinion of its counsel, might be unlawful.

Creation and Redemption Transaction Fe e

To compensate the Trustee

for services in processing the creation and redemption of Baskets, an Authorized Participant is required to pay a transaction

fee to the Trustee of $500 per order to create or redeem Baskets.

An order may include multiple Baskets.

The transaction fee may be reduced, increased or otherwise changed by the Trustee with the consent of the Sponsor.

time, the Trustee, with the consent of the Sponsor, may waive all or a portion of the applicable transfer fee.

shall notify DTC of any agreement to change the transaction fee and will not implement any increase in the fee for the redemption

of Baskets until 30 days after the date of the notice.

Trust’s Sponsor is abrdn ETFs Sponsor LLC (known as Aberdeen Standard Investments ETFs Sponsor LLC prior to March 1, 2022

and ETF Securities USA LLC prior to October 1, 2018), a Delaware limited liability company formed on June 17, 2009.

Sponsor’s office is located at c/o abrdn ETFs Sponsor LLC, 1900 Market Street, Suite 200, Philadelphia, PA 19103.

to April 27, 2018, the Sponsor was wholly-owned by ETF Securities Limited, a Jersey, Channel Islands based company.

April 27, 2018, ETF Securities Limited sold its membership interest in the Sponsor to abrdn Inc.

(known as Aberdeen Standard Investments

The transaction fee may

be reduced, increased or otherwise changed by the Trustee with the consent of the Sponsor.

From time to time, the Trustee, with

the consent of the Sponsor, may waive all or a portion of the applicable transfer fee.

The Trustee shall notify DTC of any agreement

to change the transaction fee and will not implement any increase in the fee for the redemption of Baskets until 30 days after

the date of the notice.

The Trust’s Sponsor is abrdn ETFs Sponsor LLC a Delaware

limited liability company formed on June 17, 2009.

The Sponsor’s

office is located at c/o abrdn ETFs Sponsor LLC, 1900 Market Street, Suite 200, Philadelphia, PA 19103.

Prior to April 27,

2018, the Sponsor was wholly-owned by ETF Securities Limited, a Jersey, Channel Islands based company.

Effective April 27,

2018, ETF Securities Limited sold its membership interest in the Sponsor to abrdn Inc.

(known as Aberdeen Standard

Investments Inc.

prior to January 1, 2022), a Delaware corporation.

As a result of the sale, abrdn Inc.

became the sole member of the Sponsor.

is a wholly-owned indirect subsidiary of abrdn plc, which together with its affiliates and subsidiaries, is collectively

referred to as “abrdn.” Under the Delaware Limited Liability Company Act and the governing documents of the Sponsor,

the sole member of the Sponsor, abrdn Inc., is not responsible for the debts, obligations and liabilities of the Sponsor solely

by reason of being the sole member of the Sponsor.

Sponsor’s Role

Sponsor arranged for the creation of the Trust, and is responsible for the ongoing registration of the Shares for their public

offering in the United States and the listing of the Shares on the NYSE Arca.

The Sponsor has agreed to assume the following administrative

and marketing expenses incurred by the Trust:

the Trustee’s monthly fee and out-of-pocket expenses, the Custodian’s

fee and the reimbursement of the Custodian’s expenses under the Custody Agreements, Exchange listing fees, SEC registration

fees, printing and mailing costs, audit fees and up to $100,000 per annum in legal expenses.

The Sponsor also paid the costs of

the Trust’s organization and the initial sale of the Shares, including the applicable SEC registration fees.

Sponsor does not exercise day-to-day oversight over the Trustee or the Custodian.

The Sponsor may remove the Trustee and appoint

a successor Trustee (i) if the Trustee ceases to meet certain objective requirements (including the requirement that it have capital,

surplus and undivided profits of at least $150 million), (ii) if, having received written notice of a material breach of its obligations

under the Trust Agreement, the Trustee has not cured the breach within 30 days, or (iii) if the Trustee refuses to consent to

the implementation of an amendment to the Trust’s initial Internal Control Over Financial Reporting.

The Sponsor also has

the right to replace the Trustee during the 90 days following any merger, consolidation or conversion in which the Trustee is

not the surviving entity or, in its discretion, on the fifth anniversary of the creation of the Trust or on any subsequent third

anniversary thereafter.

The Sponsor also has the right to approve any new or additional custodian that the Trustee may wish to

Sponsor or one of its affiliates or agents (1) develops a marketing plan for the Trust on an ongoing basis, (2) prepares marketing

materials regarding the Shares, including the content of the Trust’s website and (3) executes the marketing plan for the

Bank of New York Mellon, a banking corporation organized under the laws of the State of New York with trust powers (“BNYM”),

serves as the Trustee.

BNYM has a trust office at 240 Greenwich Street, New York, NY 10286.

BNYM is subject to supervision by

the New York State Financial Services Department and the Board of Governors of the Federal Reserve System.

Information regarding

creation and redemption Basket composition, NAV of the Trust, transaction fees and the names of the parties that have each executed

an Authorized Participant Agreement may be obtained from BNYM.

A copy of the Trust Agreement is available for inspection at BNYM’s

trust office identified above.

Under the Trust Agreement, the Trustee is required to have capital, surplus and undivided profits

of at least $150 million.

Trustee’s Role

Trustee is generally responsible for the day-to-day administration of the Trust, including keeping the Trust’s operational

The Trustee’s principal responsibilities include (1) transferring the Trust’s silver as needed to pay the

Sponsor’s Fee in silver (silver transfers are expected to occur approximately monthly in the ordinary course), (2)

valuing the Trust’s silver and calculating the NAV of the Trust and the NAV per Share, (3) receiving and processing orders

from Authorized Participants to create and redeem Baskets and coordinating the processing of such orders with the Custodian and

DTC, (4) selling the Trust’s silver as needed to pay any extraordinary Trust expenses that are not assumed by the Sponsor,

(5) when appropriate, making distributions of cash or other property to Shareholders, and (6) receiving and reviewing reports

from or on the Custodian’s custody of and transactions in the Trust’s silver.

The Trustee shall, with respect to directing

the Custodian, act in accordance with the instructions of the Sponsor.

If the Custodian resigns, the Trustee shall appoint an

additional or replacement Custodian selected by the Sponsor.

Trustee intends to regularly communicate with the Sponsor to monitor the overall performance of the Trust.

The Trustee does not

monitor the performance of the Custodian, or any other sub-custodian other than to review the reports provided by the Custodian

pursuant to the Custody Agreements.

The Trustee, along with the Sponsor, will liaise with the Trust’s legal, accounting

and other professional service providers as needed.

The Trustee will assist and support the Sponsor with the preparation of all

periodic reports required to be filed with the SEC on behalf of the Trust.

Trustee’s monthly fees and out-of-pocket expenses are paid by the Sponsor.

of the Trustee may from time to time act as Authorized Participants or purchase or sell silver or Shares for their own

account, as agent for their customers and for accounts over which they exercise investment discretion.

Affiliates of the Trustee

are subject to the same transaction fee as other Authorized Participants.

Chase Bank N.A.

(“JPMorgan”) serves as the Custodian of the Trust’s silver.

JPMorgan is a national banking association

organized under the laws of the United States of America.

JPMorgan is subject to supervision by the Federal Reserve Bank of New

York and the Federal Deposit Insurance Corporation.

JPMorgan’s London office is regulated by the FCA and is located at 25

Bank Street, Canary Wharf, London, E14 5JP, United Kingdom.

became the sole

member of the Sponsor.

is a wholly-owned indirect subsidiary of abrdn plc, which together with its affiliates and

subsidiaries, is collectively referred to as “abrdn.” Under the Delaware Limited Liability Company Act and the

governing documents of the Sponsor, the sole member of the Sponsor, abrdn Inc., is not responsible for the debts, obligations

and liabilities of the Sponsor solely by reason of being the sole member of the Sponsor.

The Sponsor’s Role

The Sponsor arranged for the creation of the Trust, and is responsible

for the ongoing registration of the Shares for their public offering in the United States and the listing of the Shares on the

The Sponsor has agreed to assume the following administrative and marketing expenses incurred by the Trust:

the Trustee’s

monthly fee and out-of-pocket expenses, the Custodian’s fee and the reimbursement of the Custodian’s expenses under

the Custody Agreements, Exchange listing fees, SEC registration fees, printing and mailing costs, audit fees and up to $100,000

per annum in legal expenses.

The Sponsor also paid the costs of the Trust’s organization and the initial sale of the Shares,

including the applicable SEC registration fees.

The Sponsor does not exercise day-to-day oversight over the

Trustee or the Custodian.

The Sponsor may remove the Trustee and appoint a successor Trustee (i) if the Trustee ceases to meet

certain objective requirements (including the requirement that it have capital, surplus and undivided profits of at least $150

million), (ii) if, having received written notice of a material breach of its obligations under the Trust Agreement, the Trustee

has not cured the breach within 30 days, or (iii) if the Trustee refuses to consent to the implementation of an amendment to the

Trust’s initial Internal Control Over Financial Reporting.

The Sponsor also has the right to replace the Trustee during the

90 days following any merger, consolidation or conversion in which the Trustee is not the surviving entity or, in its discretion,

on the fifth anniversary of the creation of the Trust or on any subsequent third anniversary thereafter.

The Sponsor also has the

right to approve any new or additional custodian that the Trustee may wish to appoint.

The Sponsor or one of its affiliates or agents (1) develops

a marketing plan for the Trust on an ongoing basis, (2) prepares marketing materials regarding the Shares, including the content

of the Trust’s website and (3) executes the marketing plan for the Trust.

The Bank of New York Mellon, a banking corporation organized

under the laws of the State of New York with trust powers (“BNYM”), serves as the Trustee.

BNYM has a trust office

at 240 Greenwich Street, New York, NY 10286.

BNYM is subject to supervision by the New York State Financial Services Department

and the Board of Governors of the Federal Reserve System.

Information regarding creation and redemption Basket composition, NAV

of the Trust, transaction fees and the names of the parties that have each executed an Authorized Participant Agreement may be

obtained from BNYM.

A copy of the Trust Agreement is available for inspection at BNYM’s trust office identified above.

the Trust Agreement, the Trustee is required to have capital, surplus and undivided profits of at least $150 million.

The Trustee’s Role

The Trustee is generally responsible for the day-to-day administration

of the Trust, including keeping the Trust’s operational records.

The Trustee’s principal responsibilities include (1)

transferring the Trust’s silver as needed to pay the Sponsor’s Fee in silver (silver transfers are expected

to occur approximately monthly in the ordinary course), (2) valuing the Trust’s silver and calculating the NAV of the Trust

and the NAV per Share, (3) receiving and processing orders from Authorized Participants to create and redeem Baskets and coordinating

the processing of such orders with the Custodian and DTC, (4) selling the Trust’s silver as needed to pay any extraordinary

Trust expenses that are not assumed by the Sponsor, (5) when appropriate, making distributions of cash or other property to Shareholders,

and (6) receiving and reviewing reports from or on the Custodian’s custody of and transactions in the Trust’s silver.

The Trustee shall, with respect to directing the Custodian, act in accordance with the instructions of the Sponsor.

If the Custodian

resigns, the Trustee shall appoint an additional or replacement Custodian selected by the Sponsor.

The Trustee intends to regularly communicate with the Sponsor

to monitor the overall performance of the Trust.

The Trustee does not monitor the performance of the Custodian, or any other sub-custodian

other than to review the reports provided by the Custodian pursuant to the Custody Agreements.

The Trustee, along with the Sponsor,

will liaise with the Trust’s legal, accounting and other professional service providers as needed.

The Trustee will assist

and support the Sponsor with the preparation of all periodic reports required to be filed with the SEC on behalf of the Trust.

The Trustee’s monthly fees and out-of-pocket expenses

are paid by the Sponsor.

Affiliates of the Trustee may from time to time act as Authorized

Participants or purchase or sell silver or Shares for their own account, as agent for their customers and for accounts over

which they exercise investment discretion.

Affiliates of the Trustee are subject to the same transaction fee as other Authorized

Participants.

The Custodian

JPMorgan Chase Bank N.A.

(“JPMorgan”) serves as

the Custodian of the Trust’s silver.

JPMorgan is a national banking association organized under the laws of the United States

JPMorgan is subject to supervision by the Federal Reserve Bank of New York and the Federal Deposit Insurance Corporation.

JPMorgan’s London office is regulated by the FCA and is located at 25 Bank Street, Canary Wharf, London, E14 5JP, United

JPMorgan is a subsidiary of JPMorgan Chase & Co.

While the United

Kingdom operations of the Custodian are regulated by the FCA, the custodial services provided by the Custodian and any sub-custodian

under the Custody Agreements, are presently not a regulated activity subject to the supervision and rules of the FCA.

Custodian’s Role

Custodian is responsible for safekeeping of the Trust’s silver deposited with it by Authorized Participants in connection

with the creation of Baskets.

The Custodian is also responsible for selecting sub-custodians, if any.

The Custodian facilitates

the transfer of silver in and out of the Trust through the unallocated silver accounts it will maintain for each Authorized Participant

and the unallocated and allocated silver accounts it will maintain for the Trust.

The Custodian holds the Trust’s allocated

silver at a sub-custodian.

The Custodian is responsible for allocating specific bars of silver bullion to the Trust Allocated

The Custodian provides the Trustee with regular reports detailing the silver transfers in and out of the Trust’s

unallocated and allocated silver accounts and identifying the silver bars held in the Trust’s allocated silver account.

Custodian’s fees and expenses under the Custody Agreements are paid by the Sponsor.

Custodian and its affiliates may from time to time act as Authorized Participants or purchase or sell silver or Shares for their

own account, as agent for their customers and for accounts over which they exercise investment discretion.

The Custodian and its

affiliates are subject to the same transaction fee as other Authorized Participants.

the Custody Agreements, the Trustee, the Sponsor and the Trust’s auditors and inspectors may, only up to twice a year, visit

the premises of the Custodian for the purpose of examining the Trust’s silver and certain related records maintained

by the Custodian.

In addition, under the Custody Agreements, the Custodian shall procure that any sub-custodian that it appoints

allows access to its premises during normal business hours to examine the Trust’s silver held there and such records as

the Trustee, the Sponsor or the Trust’s auditors and inspectors may reasonably require to perform their respective duties

to Shareholders.

Sponsor has exercised its right to visit the Custodian in order to examine the silver and the records maintained by them.

Inspections were conducted by Bureau Veritas Commodities UK Ltd, a leading commodity inspection and testing company retained by

the Sponsor, as of June 30,2022 and December 31, 2022.

can be no guarantee that the Sponsor or the Trust’s auditors and inspectors will be able to perform physical inspections

of the Trust’s silver as planned.

Local policies, regulations, or ordinances, as well as polices or restrictions adopted

by the Custodian, the Zurich Sub-Custodian, or any other sub-custodian, may temporarily prevent, or otherwise impair the ability

of, the Sponsor or the Trust’s auditors and inspectors, from performing a physical inspection of the Trust’s silver

on a desired date.

In those situations, the Sponsor or the Trust’s auditors and inspectors may seek to verify the silver held

by the Trust by alternate means, including through virtual inspections of the Trust’s silver and/or a review of pertinent

of the Shares

Trustee is authorized under the Trust Agreement to create and issue an unlimited number of Shares.

The Trustee creates Shares

only in Baskets (a Basket equals a block of 50,000 Shares) and only upon the order of an Authorized Participant.

The Shares represent

units of fractional undivided beneficial interest in and ownership of the Trust and have no par value.

Any creation and issuance

of Shares above the amount registered on the Trust’s then-current and effective registration statement with the SEC will

require the registration of such additional Shares.

of Limited Rights

Shares do not represent a traditional investment and Shareholders should not view them as similar to shares of a corporation operating

a business enterprise with management and a board of directors.

Shareholders do not have the statutory rights normally associated

with the ownership of shares of a corporation, including, for example, the right to bring “oppression” or “derivative”

All Shares are of the same class with equal rights and privileges.

Each Share is transferable, is fully paid and non-assessable

and entitles the holder to vote on the limited matters upon which Shareholders may vote under the Trust Agreement.

do not entitle their holders to any conversion or pre-emptive rights, or, except as provided below, any redemption rights or rights

to distributions.

While the United Kingdom operations of the Custodian are regulated

by the FCA, the custodial services provided by the Custodian and any sub-custodian under the Custody Agreements, are presently

not a regulated activity subject to the supervision and rules of the FCA.

The Custodian’s Role

The Custodian is responsible for the safekeeping of the Trust’s

silver deposited with it by Authorized Participants in connection with the creation of Baskets.

The Custodian is also responsible

for selecting sub-custodians, if any.

The Custodian facilitates the transfer of silver in and out of the Trust through the unallocated

silver accounts it will maintain for each Authorized Participant and the unallocated and allocated silver accounts it maintains

for the Trust.

The Custodian holds the Trust’s allocated silver at a sub-custodian.

The Custodian is responsible for allocating

specific bars of silver bullion to the Trust Allocated Account.

The Custodian provides the Trustee with regular reports detailing

the silver transfers in and out of the Trust’s unallocated and allocated silver accounts and identifying the silver bars

held in the Trust’s allocated silver account.

The Custodian’s fees and expenses under the Custody Agreements

are paid by the Sponsor.

The Custodian and its affiliates may from time to time act as

Authorized Participants or purchase or sell silver or Shares for their own account, as agent for their customers and for accounts

over which they exercise investment discretion.

The Custodian and its affiliates are subject to the same transaction fee as other

Authorized Participants.

Inspection of Silver

Under the Custody Agreements, the Trustee, the Sponsor and the

Trust’s auditors and inspectors may, only up to twice a year, visit the premises of the Custodian for the purpose of examining

the Trust’s silver and certain related records maintained by the Custodian.

In addition, under the Custody Agreements,

the Custodian shall procure that any sub-custodian that it appoints allows access to its premises during normal business hours

to examine the Trust’s silver held there and such records as the Trustee, the Sponsor or the Trust’s auditors and inspectors may

reasonably require to perform their respective duties to Shareholders.

The Sponsor has exercised its right to visit the Custodian in

order to examine the silver and the records maintained by the Custodian.

Inspections were conducted by Bureau Veritas Commodities

UK Ltd, a leading commodity inspection and testing company retained by the Sponsor, as of July 7, 2023 and December 31, 2023.

There can be no guarantee that the Sponsor or the Trust’s

auditors and inspectors will be able to perform physical inspections of the Trust’s silver as planned.

Local policies,

regulations, or ordinances, as well as polices or restrictions adopted by the Custodian, the Zurich Sub-Custodian, or any other

sub-custodian, may temporarily prevent, or otherwise impair the ability of, the Sponsor or the Trust’s auditors and inspectors,

from performing a physical inspection of the Trust’s silver on a desired date.

In those situations, the Sponsor or the

Trust’s auditors and inspectors may seek to verify the silver held by the Trust by alternate means, including through

virtual inspections of the Trust’s silver and/or a review of pertinent records.

Description of the Shares

The Trustee is authorized under the Trust Agreement to create

and issue an unlimited number of Shares.

The Trustee creates Shares only in Baskets (a Basket equals a block of 50,000 Shares)

and only upon the order of an Authorized Participant.

The Shares represent units of fractional undivided beneficial interest in

and ownership of the Trust and have no par value.

Any creation and issuance of Shares above the amount registered on the Trust’s

then-current and effective registration statement with the SEC will require the registration of such additional Shares.

Description of Limited Rights

The Shares do not represent a traditional investment and Shareholders

should not view them as similar to shares of a corporation operating a business enterprise with management and a board of directors.

Shareholders do not have the statutory rights normally associated with the ownership of shares of a corporation, including, for

example, the right to bring “oppression” or “derivative” actions.

All Shares are of the same class with

equal rights and privileges.

Each Share is transferable, is fully paid and non-assessable and entitles the holder to vote on the

limited matters upon which Shareholders may vote under the Trust Agreement.

The Shares do not entitle their holders to any conversion

or pre-emptive rights, or, except as provided below, any redemption rights or rights to distributions.

Distributions

the Trust is terminated and liquidated, the Trustee will distribute to the Shareholders any amounts remaining after the satisfaction

of all outstanding liabilities of the Trust and the establishment of such reserves for applicable taxes, other governmental charges

and contingent or future liabilities as the Trustee shall determine.

Shareholders of record on the record date fixed by the Trustee

for a distribution will be entitled to receive their pro rata portion of any distribution.

and Approvals

the Trust Agreement, Shareholders have no voting rights, except in limited circumstances.

The Trustee may terminate the Trust

upon the agreement of Shareholders owning at least 75% of the outstanding Shares.

In addition, certain amendments to the Trust

Agreement require advance notice to the Shareholders before the effectiveness of such amendments, but no Shareholder vote or approval

is required for any amendment to the Trust Agreement.

of the Shares

Shares may only be redeemed by or through an Authorized Participant and only in Baskets.

certificates will not be issued for the Shares.

Instead, one or more global certificates is deposited by the Trustee with DTC

and registered in the name of Cede & Co., as nominee for DTC.

The global certificates evidence all of the Shares outstanding

Under the Trust Agreement, Shareholders are limited to (1) participants in DTC such as banks, brokers, dealers and

trust companies (DTC Participants), (2) those who maintain, either directly or indirectly, a custodial relationship with a DTC

Participant (Indirect Participants), and (3) those banks, brokers, dealers, trust companies and others who hold interests in the

Shares through DTC Participants or Indirect Participants.

The Shares are only transferable through the book-entry system of DTC.

Shareholders who are not DTC Participants may transfer their Shares through DTC by instructing the DTC Participant holding their

Shares (or by instructing the Indirect Participant or other entity through which their Shares are held) to transfer the Shares.

Transfers will be made in accordance with standard securities industry practice.

of the Trust’s Silver

of the silver bullion deposited with and held by the Trust is provided by sub-custodians selected by the Custodian.

The Custodian

is a market maker, clearer and approved weigher under the rules of the LBMA.

Custodian is the custodian of the silver bullion credited to Trust Allocated Account in accordance with the Custody Agreements.

The Custodian segregates the silver bullion credited to the Trust Allocated Account from any other precious metal it holds or

holds for others by entering appropriate entries in its books and records.

Under the Custody Agreements, the Trustee, the Sponsor

and the Trust’s auditors and inspectors may inspect the vaults of the Custodian.

If the Trust is terminated and liquidated, the Trustee will

distribute to the Shareholders any amounts remaining after the satisfaction of all outstanding liabilities of the Trust and the

establishment of such reserves for applicable taxes, other governmental charges and contingent or future liabilities as the Trustee

shall determine.

Shareholders of record on the record date fixed by the Trustee for a distribution will be entitled to receive

their pro rata portion of any distribution.

Voting and Approvals

Under the Trust Agreement, Shareholders have no voting rights,

except in limited circumstances.

The Trustee may terminate the Trust upon the agreement of Shareholders owning at least 75% of

the outstanding Shares.

In addition, certain amendments to the Trust Agreement require advance notice to the Shareholders before

the effectiveness of such amendments, but no Shareholder vote or approval is required for any amendment to the Trust Agreement.

Redemption of the Shares

The Shares may only be redeemed by or through an Authorized

Participant and only in Baskets.

Book-Entry Form

Individual certificates will not be issued for the Shares.

one or more global certificates is deposited by the Trustee with DTC and registered in the name of Cede & Co., as nominee for

The global certificates evidence all of the Shares outstanding at any time.

Under the Trust Agreement, Shareholders are limited

to (1) participants in DTC such as banks, brokers, dealers and trust companies (DTC Participants), (2) those who maintain, either

directly or indirectly, a custodial relationship with a DTC Participant (Indirect Participants), and (3) those banks, brokers,

dealers, trust companies and others who hold interests in the Shares through DTC Participants or Indirect Participants.

are only transferable through the book-entry system of DTC.

Shareholders who are not DTC Participants may transfer their Shares

through DTC by instructing the DTC Participant holding their Shares (or by instructing the Indirect Participant or other entity

through which their Shares are held) to transfer the Shares.

Transfers will be made in accordance with standard securities industry

Custody of the Trust’s Silver

Custody of the silver bullion deposited with and held by the

Trust is provided by sub-custodians selected by the Custodian.

The Custodian is a market maker, clearer and approved weigher under

the rules of the LBMA.

The Custodian is the custodian of the silver bullion credited

to Trust Allocated Account in accordance with the Custody Agreements.

The Custodian segregates the silver bullion credited to the

Trust Allocated Account from any other precious metal it holds or holds for others by entering appropriate entries in its books

Under the Custody Agreements, the Trustee, the Sponsor and the Trust’s auditors and inspectors may inspect the

vaults of the Custodian.

See “ Inspection of Silver ”.

Custodian, as instructed by the Trustee on behalf of the Trust, is authorized to accept, on behalf of the Trust, deposits of silver

in unallocated form.

Acting on standing instructions specified in the Custody Agreements, the Custodian allocates silver deposited

in unallocated form with the Trust by selecting bars of silver bullion for deposit to the Trust Allocated Account.

bullion allocated to the Trust must conform to the rules, regulations, practices and customs of the LBMA, and the Custodian must

replace any non-conforming silver bullion with conforming silver bullion as soon as practical upon a determination by the Custodian

any silver bullion is non-conforming.

process of withdrawing silver from the Trust for a redemption of a Basket follows the same general procedure as for depositing silver

with the Trust for a creation of a Basket, only in reverse.

Each transfer of silver between the Trust Allocated Account and

the Trust Unallocated Account connected with a creation or redemption of a Basket may result in a small amount of silver

being held in the Trust Unallocated Account after the completion of the transfer.

In making deposits and withdrawals between the

Trust Allocated Account and the Trust Unallocated Account, the Custodian will use commercially reasonable efforts to minimize

the amount of silver held in the Trust Unallocated Account as of the close of each business day.

See “Creation and

Redemption of Shares.”

States Federal Income Tax Consequences

following discussion of the material US federal income tax consequences generally applies to the purchase, ownership and disposition

of Shares by a US Shareholder (as defined below) and certain US federal income tax consequences that may apply to an investment in

Shares by a Non-US Shareholder (as defined below).

The discussion is based on the United States Internal Revenue Code of 1986 as

amended (the “Code”).

The discussion below is based on the Code, United States Treasury Regulations (“Treasury

Regulations”) promulgated under the Code and judicial and administrative interpretations of the Code, all as in effect on the

date of this annual report and all of which are subject to change either prospectively or retroactively.

The tax treatment of

Shareholders may vary depending upon their own particular circumstances.

Certain Shareholders (including broker-dealers, traders,

banks and other financial institutions, insurance companies, real estate investment trusts, tax-exempt entities, Shareholders whose

functional currency is not the U.S.

Dollar or other investors with special circumstances) may be subject to special rules not

discussed below.

In addition, the following discussion applies only to investors who hold Shares as “capital assets”

within the meaning of Code section 1221 and not as part of a straddle, hedging transaction or a conversion or constructive sale

Moreover, the discussion below does not address the effect of any state, local or foreign tax law or any transfer tax

on an owner of Shares.

Purchasers of Shares are urged to consult their own tax advisors with respect to all federal, state, local

and foreign tax law or any transfer tax considerations potentially applicable to their investment in Shares.

purposes of this discussion, a “US Shareholder” is a Shareholder that is:

individual who is treated as a citizen or resident of the United States;

corporation (or other entity treated as a corporation for US federal tax purposes) created or organized in or under the laws of

the United States or any political subdivision thereof;

estate, the income of which is includible in gross income for US federal income tax purposes regardless of its source;

trust, if a court within the United States is able to exercise primary supervision over the administration of the trust and one

or more US persons have the authority to control all substantial decisions of the trust.

Shareholder that is not a US Shareholder as defined above (other than a partnership, or an entity treated as a partnership for

US federal tax purposes) generally is considered a “Non-US Shareholder” for purposes of this discussion.

For US federal

income tax purposes, the treatment of any beneficial owner of an interest in a partnership, including any entity treated as a

partnership for US federal income tax purposes, generally depends upon the status of the partner and upon the activities of the

Partnerships and partners in partnerships should consult their tax advisors about the US federal income tax consequences

of purchasing, owning and disposing of Shares.

Trust is classified as a “grantor trust” for US federal income tax purposes.

As a result, the Trust itself is not

subject to US federal income tax.

Instead, the Trust’s income and expenses “flow through” to the Shareholders,

and the Trustee reports the Trust’s income, gains, losses and deductions to the Internal Revenue Service (“IRS”)

on that basis.

of US Shareholders

generally are treated, for US federal income tax purposes, as if they directly owned a pro rata share of the underlying assets

held by the Trust.

Shareholders are also treated as if they directly received their respective pro rata share of the Trust’s

income, if any, and as if they directly incurred their respective pro rata share of the Trust’s expenses.

In the case of

a Shareholder that purchases Shares for cash, its initial tax basis in its pro rata share of the assets held by the Trust at the

time it acquires its Shares is equal to its cost of acquiring the Shares.

In the case of a Shareholder that acquires its Shares

as part of a creation of a Basket, the delivery of silver to the Trust in exchange for the Shares is not a taxable event

to the Shareholder, and the Shareholder’s tax basis and holding period for the Shares are the same as its tax basis and

holding period for the silver delivered in exchange therefore (except to the extent of any cash contributed for such Shares).

For purposes of this discussion, it is assumed that all of a Shareholder’s Shares are acquired on the same date and at the

same price per Share.

Shareholders that hold multiple lots of Shares, or that are contemplating acquiring multiple lots of Shares,

should consult their tax advisors.

the Trust sells or transfers silver, for example to pay expenses, a Shareholder generally will recognize gain or loss in an amount

equal to the difference between (1) the Shareholder’s pro rata share of the amount realized by the Trust upon the sale or

transfer and (2) the Shareholder’s tax basis for its pro rata share of the silver that was sold or transferred.

or loss will generally be long-term or short-term capital gain or loss, depending upon whether the Shareholder has a holding period

in its Shares of longer than one year.

A Shareholder’s tax basis for its share of any silver sold by the Trust generally

will be determined by multiplying the Shareholder’s total basis for its Shares immediately prior to the sale, by a fraction

the numerator of which is the amount of silver sold, and the denominator of which is the total amount of the silver held by the

Trust immediately prior to the sale.

After any such sale, a Shareholder’s tax basis for its pro rata share of the silver

remaining in the Trust will be equal to its tax basis for its Shares immediately prior to the sale, less the portion of such basis

allocable to its share of the silver that was sold.

a Shareholder’s sale of some or all of its Shares, the Shareholder will be treated as having sold a pro rata share of the silver

held in the Trust at the time of the sale.

Accordingly, the Shareholder generally will recognize a gain or loss on the sale

in an amount equal to the difference between (1) the amount realized pursuant to the sale of the Shares, and (2) the Shareholder’s

tax basis for the Shares sold, as determined in the manner described in the preceding paragraph.

redemption of some or all of a Shareholder’s Shares in exchange for the underlying silver represented by the Shares

redeemed generally will not be a taxable event to the Shareholder.

The Shareholder’s tax basis for the silver received

in the redemption generally will be the same as the Shareholder’s tax basis for the Shares redeemed.

The Shareholder’s

holding period with respect to the silver received should include the period during which the Shareholder held the Shares

A subsequent sale of the silver received by the Shareholder will be a taxable event.

Authorized Participant and other investors may be able to re-invest, on a tax-deferred basis, in-kind redemption proceeds received

from exchange-traded products that are substantially similar to the Trust in the Trust’s Shares.

Authorized Participants

and other investors should consult their tax advisors as to whether and under what circumstances the reinvestment in the Shares

of proceeds from substantially similar exchange-traded products can be accomplished on a tax-deferred basis.

current law, gains recognized by individuals, estates or trusts from the sale of “collectibles,” including physical

silver, held for more than one year are taxed at a maximum federal income tax rate of 28%, rather than the 20% rate applicable

to most other long-term capital gains.

For these purposes, gains recognized by an individual upon the sale of Shares held for

more than one year, or attributable to the Trust’s sale of any physical silver which the Shareholder is treated (through

its ownership of Shares) as having held for more than one year, generally will be taxed at a maximum rate of 28%.

The tax rates

for capital gains recognized upon the sale of assets held by an individual US Shareholder for one year or less or by a corporate

taxpayer are generally the same as those at which ordinary income is taxed.

addition, high-income individuals and certain trusts and estates are subject to a 3.8% Medicare contribution tax that is imposed

on net investment income and gain.

Shareholders should consult their tax advisor regarding this tax.

Fees and Trust Expenses

brokerage or other transaction fees incurred by a Shareholder in purchasing Shares is treated as part of the Shareholder’s

tax basis in the Shares.

Similarly, any brokerage fee incurred by a Shareholder in selling Shares reduces the amount realized

by the Shareholder with respect to the sale.

will be required to recognize a gain or loss upon a sale of silver by the Trust (as discussed above), even though some or

all of the proceeds of such sale are used by the Trustee to pay Trust expenses.

Shareholders may deduct their respective pro rata

share of each expense incurred by the Trust to the same extent as if they directly incurred the expense.

Shareholders who are

individuals, estates or trusts, however, may be required to treat some or all of the expenses of the Trust, to the extent that

such expenses may be deducted, as miscellaneous itemized deductions.

Miscellaneous itemized deductions, including expenses for

the production of income, will not be deductible for either regular federal income tax or alternative minimum tax purposes for

taxable years beginning after December 31, 2017 and before January 1, 2026 and thereafter generally are (i) deductible only

to the extent that the aggregate of a Shareholder’s miscellaneous itemized deductions exceeds 2% of such Shareholder’s

adjusted gross income for federal income tax purposes, (ii) not deductible for the purposes of the alternative minimum tax and

(iii) are subject to the overall limitation on itemized deductions under the Code.

by Regulated Investment Companies

funds and other investment vehicles which are “regulated investment companies” within the meaning of Code section

851 should consult with their tax advisors concerning (1) the likelihood that an investment in Shares, although they are a “security”

within the meaning of the Investment Company Act of 1940, may be considered an investment in the underlying silver for purposes

of Code section 851(b), and (2) the extent to which an investment in Shares might nevertheless be consistent with preservation

of their qualification under Code section 851.

In administrative guidance, the IRS stated that it will no longer issue rulings

under Code section 851(b) relating to the determination of whether or not an instrument or position is a “security”,

but, instead, intends to defer to guidance from the SEC for such determination.

States Information Reporting and Backup Withholding Tax for US and Non-US Shareholders

Trustee or the appropriate broker will file certain information returns with the IRS, and provides certain tax-related information

to Shareholders, in accordance with applicable Treasury Regulations.

Each Shareholder will be provided with information regarding

its allocable portion of the Trust’s annual income (if any) and expenses.

US Shareholder may be subject to US backup withholding tax in certain circumstances unless it provides its taxpayer identification

number and complies with certain certification procedures.

Non-US Shareholders may have to comply with certification procedures

to establish that they are not a US person in order to avoid the backup withholding tax.

amount of any backup withholding tax will be allowed as a credit against a Shareholder’s US federal income tax liability

and may entitle such a Shareholder to a refund, provided that the required information is furnished to the IRS.

Taxation of Non-US Shareholders

Trust does not expect to generate taxable income except for gains (if any) upon the sale of silver.

A Non-US Shareholder generally

is not subject to US federal income tax with respect to gains recognized upon the sale or other disposition of Shares, or upon

the sale of silver by the Trust, unless (1) the Non-US Shareholder is an individual and is present in the United States for

183 days or more during the taxable year of the sale or other disposition, and the gain is treated as being from United States

or (2) the gain is effectively connected with the conduct by the Non-US Shareholder of a trade or business in the United

in Jurisdictions other than the United States

purchasers of Shares that are based in or acting out of a jurisdiction other than the United States are advised to consult their

own tax advisers as to the tax consequences, under the laws of such jurisdiction (or any other jurisdiction not being the United

States to which they are subject), of their purchase, holding, sale and redemption of or any other dealing in Shares and, in particular,

as to whether any value added tax, other consumption tax or transfer tax is payable in relation to such purchase, holding, sale,

redemption or other dealing.

and Related Considerations

Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and/or Code section 4975 impose certain requirements

on certain employee benefit plans and certain other plans and arrangements, including individual retirement accounts and annuities,

Keogh plans, and certain commingled investment vehicles or insurance company general or separate accounts in which such plans

or arrangements are invested (collectively, “Plans”), and on persons who are fiduciaries with respect to the investment

of “plan assets” of a Plan.

Government plans and some church plans are not subject to the fiduciary responsibility

provisions of ERISA or the provisions of section 4975 of the Code, but may be subject to substantially similar rules under other

federal law, or under state or local law (“Other Law”).

contemplating an investment of a portion of Plan assets in Shares, the Plan fiduciary responsible for making such investment should

carefully consider, taking into account the facts and circumstances of the Plan and the “Risk Factors” discussed above

and whether such investment is consistent with its fiduciary responsibilities under ERISA or Other Law, including, but not limited

(1) whether the investment is permitted under the Plan’s governing documents, (2) whether the fiduciary has the authority

to make the investment, (3) whether the investment is consistent with the Plan’s funding objectives, (4) the tax effects

of the investment on the Plan, and (5) whether the investment is prudent considering the factors discussed in this report.

addition, ERISA and Code section 4975 prohibit a broad range of transactions involving assets of a plan and persons who are “parties

in interest” under ERISA or “disqualified persons” under section 4975 of the Code.

A violation of these rules

may result in the imposition of significant excise taxes and other liabilities.

Plans subject to Other Law may be subject to similar

restrictions.

is anticipated that the Shares will constitute “publicly offered securities” as defined in the Department of Labor

“Plan Asset Regulations,” §2510.3-101 (b)(2) as modified by section 3(42) of ERISA.

Accordingly, pursuant to

the Plan Asset Regulations, only Shares purchased by a Plan, and not an interest in the underlying assets held in the Trust, should

be treated as assets of the Plan, for purposes of applying the “fiduciary responsibility” rules of ERISA and the “prohibited

transaction” rules of ERISA and the Code.

Fiduciaries of plans subject to Other Law should consult legal counsel to determine

whether there would be a similar result under the Other Law.

by Certain Retirement Plans

section 408(m) provides that the acquisition of a “collectible” by an individual retirement account (“IRA”)

or a participant-directed account maintained under any plan that is tax-qualified under Code section 401(a) (“Tax Qualified

Account”) is treated as a taxable distribution from the account to the owner of the IRA, or to the participant for whom

the Tax Qualified Account is maintained, of an amount equal to the cost to the account of acquiring the collectible.

“collectible” is defined to include, with certain exceptions, “any metal or gem”.

The IRS has issued several

private letter rulings to the effect that a purchase by an IRA, or by a participant-directed account under a Code section 401(a)

plan, of publicly-traded shares in a trust holding silver will not be treated as resulting in a taxable distribution to the IRA

owner or Tax Qualified Account participant under Code section 408(m).

However the private letter rulings provide that, if any

of the Shares so purchased are distributed from the IRA or Tax Qualified Account to the IRA owner or Tax Qualified Account participant,

or if any silver is received by such IRA or Tax Qualified Account upon the redemption of any of the Shares purchased by it,

the Shares or silver so distributed will be subject to federal income tax in the year of distribution, to the extent provided

under the applicable provisions of Code sections 408(d), 408(m) or 402.

Accordingly, potential IRA or Tax Qualified Account investors

are urged to consult with their own professional advisors concerning the treatment of an investment in Shares under Code section

The Custodian, as instructed

by the Trustee on behalf of the Trust, is authorized to accept, on behalf of the Trust, deposits of silver in unallocated form.

Acting on standing instructions specified in the Custody Agreements, the Custodian allocates silver deposited in unallocated form

with the Trust by selecting bars of silver bullion for deposit to the Trust Allocated Account.

All silver bullion allocated to

the Trust must conform to the rules, regulations, practices and customs of the LBMA, and the Custodian must replace any non-conforming

silver bullion with conforming silver bullion as soon as practical upon a determination by the Custodian any silver bullion is

non-conforming.

The process of withdrawing silver from the Trust for a

redemption of a Basket follows the same general procedure as for depositing silver with the Trust for a creation of a Basket,

only in reverse.

Each transfer of silver between the Trust Allocated Account and the Trust Unallocated Account connected with

a creation or redemption of a Basket may result in a small amount of silver being held in the Trust Unallocated Account after

the completion of the transfer.

In making deposits and withdrawals between the Trust Allocated Account and the Trust Unallocated

Account, the Custodian will use commercially reasonable efforts to minimize the amount of silver held in the Trust Unallocated

Account as of the close of each business day.

See “Creation and Redemption of Shares.”

United States Federal Income Tax Consequences

The following discussion of the material US federal income tax

consequences generally applies to the purchase, ownership and disposition of Shares by a US Shareholder (as defined below) and

certain US federal income tax consequences that may apply to an investment in Shares by a Non-US Shareholder (as defined below).

The discussion is based on the United States Internal Revenue Code of 1986 as amended (the “Code”).

The discussion

below is based on the Code, United States Treasury Regulations (“Treasury Regulations”) promulgated under the Code

and judicial and administrative interpretations of the Code, all as in effect on the date of this annual report and all of which

are subject to change either prospectively or retroactively.

The tax treatment of Shareholders may vary depending upon their own

particular circumstances.

Certain Shareholders (including broker-dealers, traders, banks and other financial institutions, insurance

companies, real estate investment trusts, tax-exempt entities, Shareholders whose functional currency is not the U.S.

other investors with special circumstances) may be subject to special rules not discussed below.

In addition, the following discussion

applies only to investors who hold Shares as “capital assets” within the meaning of Code section 1221 and not as part

of a straddle, hedging transaction or a conversion or constructive sale transaction.

Moreover, the discussion below does not address

the effect of any state, local or foreign tax law or any transfer tax on an owner of Shares.

Purchasers of Shares are urged to

consult their own tax advisors with respect to all federal, state, local and foreign tax law or any transfer tax considerations

potentially applicable to their investment in Shares.

For purposes of this discussion, a “US Shareholder”

is a Shareholder that is:

● An individual who is treated as a citizen or

resident of the United States;

● A corporation (or other entity treated as a corporation

for US federal tax purposes) created or organized in or under the laws of the United States or any political subdivision thereof;

● An estate, the income of which is includible in

gross income for US federal income tax purposes regardless of its source;

● A trust, if a court within the United States is

able to exercise primary supervision over the administration of the trust and one or more US persons have the authority to control

all substantial decisions of the trust.

Taxation of the Trust

The Trust is classified as a “grantor trust” for

US federal income tax purposes.

As a result, the Trust itself is not subject to US federal income tax.

Instead, the Trust’s

income and expenses “flow through” to the Shareholders, and the Trustee reports the Trust’s income, gains, losses

and deductions to the Internal Revenue Service (“IRS”) on that basis.

A Shareholder that is not a US Shareholder as defined above

(other than a partnership, or an entity treated as a partnership for US federal tax purposes) generally is considered a “Non-US

Shareholder” for purposes of this discussion.

For US federal income tax purposes, the treatment of any beneficial owner of

an interest in a partnership, including any entity treated as a partnership for US federal income tax purposes, generally depends

upon the status of the partner and upon the activities of the partnership.

Partnerships and partners in partnerships should consult

their tax advisors about the US federal income tax consequences of purchasing, owning and disposing of Shares.

Taxation of US Shareholders

Shareholders generally are treated, for US federal income tax

purposes, as if they directly owned a pro rata share of the underlying assets held by the Trust.

Shareholders are also treated

as if they directly received their respective pro rata share of the Trust’s income, if any, and as if they directly incurred

their respective pro rata share of the Trust’s expenses.

In the case of a Shareholder that purchases Shares for cash, its

initial tax basis in its pro rata share of the assets held in the Trust at the time it acquires its Shares is equal to its cost

of acquiring the Shares.

In the case of a Shareholder that acquires its Shares as part of a creation of a Basket, the delivery

of silver to the Trust in exchange for the Shares is not a taxable event to the Shareholder, and the Shareholder’s tax

basis and holding period for the Shares are the same as its tax basis and holding period for the silver delivered in exchange

therefore (except to the extent of any cash contributed for such Shares).

For purposes of this discussion, it is assumed that all

of a Shareholder’s Shares are acquired on the same date and at the same price per Share.

Shareholders that hold multiple

lots of Shares, or that are contemplating acquiring multiple lots of Shares, should consult their tax advisors.

When the Trust sells or transfers silver, for example to pay

expenses, a Shareholder generally will recognize gain or loss in an amount equal to the difference between (1) the Shareholder’s

pro rata share of the amount realized by the Trust upon the sale or transfer and (2) the Shareholder’s tax basis for its

pro rata share of the silver that was sold or transferred.

Such gain or loss will generally be long-term or short-term capital

gain or loss, depending upon whether the Shareholder has a holding period in its Shares of longer than one year.

A Shareholder’s

tax basis for its share of any silver sold by the Trust generally will be determined by multiplying the Shareholder’s total

basis for its Shares immediately prior to the sale, by a fraction the numerator of which is the amount of silver sold, and the

denominator of which is the total amount of the silver held by the Trust immediately prior to the sale.

After any such sale, a

Shareholder’s tax basis for its pro rata share of the silver remaining in the Trust will be equal to its tax basis for its

Shares immediately prior to the sale, less the portion of such basis allocable to its share of the silver that was sold.

Upon a Shareholder’s sale of some or all of its Shares,

the Shareholder will be treated as having sold a pro rata share of the silver held in the Trust at the time of the sale.

the Shareholder generally will recognize a gain or loss on the sale in an amount equal to the difference between (1) the amount

realized pursuant to the sale of the Shares, and (2) the Shareholder’s tax basis for the Shares sold, as determined in the

manner described in the preceding paragraph.

A redemption of some or all of a Shareholder’s Shares

in exchange for the underlying silver represented by the Shares redeemed generally will not be a taxable event to the Shareholder.

The Shareholder’s tax basis for the silver received in the redemption generally will be the same as the Shareholder’s

tax basis for the Shares redeemed.

The Shareholder’s holding period with respect to the silver received should include

the period during which the Shareholder held the Shares redeemed.

A subsequent sale of the silver received by the Shareholder

will be a taxable event.

An Authorized Participant and other investors may be able to

re-invest, on a tax-deferred basis, in-kind redemption proceeds received from exchange-traded products that are substantially similar

to the Trust in the Trust’s Shares.

Authorized Participants and other investors should consult their tax advisors as to whether

and under what circumstances the reinvestment in the Shares of proceeds from substantially similar exchange-traded products can

be accomplished on a tax-deferred basis.

Under current law, gains recognized by individuals, estates

or trusts from the sale of “collectibles,” including physical silver, held for more than one year are taxed at a maximum

federal income tax rate of 28%, rather than the 20% rate applicable to most other long-term capital gains.

For these purposes,

gains recognized by an individual upon the sale of Shares held for more than one year, or attributable to the Trust’s sale

of any physical silver which the Shareholder is treated (through its ownership of Shares) as having held for more than one

year, generally will be taxed at a maximum rate of 28%.

The tax rates for capital gains recognized upon the sale of assets held

by an individual US Shareholder for one year or less or by a corporate taxpayer are generally the same as those at which ordinary

income is taxed.

In addition, high-income individuals and certain trusts and

estates are subject to a 3.8% Medicare contribution tax that is imposed on net investment income and gain.

Shareholders should

consult their tax advisor regarding this tax.

Brokerage Fees and Trust Expenses

Any brokerage or other transaction fees incurred by a Shareholder

in purchasing Shares is treated as part of the Shareholder’s tax basis in the Shares.

Similarly, any brokerage fee incurred

by a Shareholder in selling Shares reduces the amount realized by the Shareholder with respect to the sale.

Shareholders will be

required to recognize a gain or loss upon a sale of silver by the Trust (as discussed above), even though some or all of

the proceeds of such sale are used by the Trustee to pay Trust expenses.

Shareholders may deduct their respective pro rata share

of each expense incurred by the Trust to the same extent as if they directly incurred the expense.

Shareholders who are individuals,

estates or trusts, however, may be required to treat some or all of the expenses of the Trust, to the extent that such expenses

may be deducted, as miscellaneous itemized deductions.

Miscellaneous itemized deductions, including expenses for the production

of income, will not be deductible for either regular federal income tax or alternative minimum tax purposes for taxable years

beginning after December 31, 2017 and before January 1, 2026 and thereafter generally are (i) deductible only to the extent

that the aggregate of a Shareholder’s miscellaneous itemized deductions exceeds 2% of such Shareholder’s adjusted

gross income for federal income tax purposes, (ii) not deductible for the purposes of the alternative minimum tax and (iii) are

subject to the overall limitation on itemized deductions under the Code.

Investment by Regulated Investment Companies

Mutual funds and other investment vehicles which are “regulated

investment companies” within the meaning of Code section 851 should consult with their tax advisors concerning (1) the likelihood

that an investment in Shares, although they are a “security” within the meaning of the Investment Company Act of 1940,

may be considered an investment in the underlying silver for purposes of Code section 851(b), and (2) the extent to which

an investment in Shares might nevertheless be consistent with preservation of their qualification under Code section 851.

In administrative

guidance, the IRS stated that it will no longer issue rulings under Code section 851(b) relating to the determination of whether

or not an instrument or position is a “security”, but, instead, intends to defer to guidance from the SEC for such

determination.

United States Information Reporting and Backup Withholding

Tax for US and Non-US Shareholders

The Trustee or the appropriate broker will file certain information

returns with the IRS, and provides certain tax-related information to Shareholders, in accordance with applicable Treasury Regulations.

Each Shareholder will be provided with information regarding its allocable portion of the Trust’s annual income (if any)

and expenses.

A US Shareholder may be subject to US backup withholding tax

in certain circumstances unless it provides its taxpayer identification number and complies with certain certification procedures.

Non-US Shareholders may have to comply with certification procedures to establish that they are not a US person in order to avoid

the backup withholding tax.

The amount of any backup withholding tax will be allowed as

a credit against a Shareholder’s US federal income tax liability and may entitle such a Shareholder to a refund, provided

that the required information is furnished to the IRS.

Income Taxation of Non-US Shareholders

The Trust does not expect to generate taxable income except

for gains (if any) upon the sale of silver.

A Non-US Shareholder generally is not subject to US federal income tax with respect

to gains recognized upon the sale or other disposition of Shares, or upon the sale of silver by the Trust, unless (1) the

Non-US Shareholder is an individual and is present in the United States for 183 days or more during the taxable year of the sale

or other disposition, and the gain is treated as being from United States sources;

or (2) the gain is effectively connected with

the conduct by the Non-US Shareholder of a trade or business in the United States.

Taxation in Jurisdictions other than the United States

Prospective purchasers of Shares that are based in or acting

out of a jurisdiction other than the United States are advised to consult their own tax advisers as to the tax consequences, under

the laws of such jurisdiction (or any other jurisdiction not being the United States to which they are subject), of their purchase,

holding, sale and redemption of or any other dealing in Shares and, in particular, as to whether any value added tax, other consumption

tax or transfer tax is payable in relation to such purchase, holding, sale, redemption or other dealing.

ERISA and Related Considerations

The Employee Retirement Income Security Act of 1974, as amended

(“ERISA”), and/or Code section 4975 impose certain requirements on certain employee benefit plans and certain other

plans and arrangements, including individual retirement accounts and annuities, Keogh plans, and certain commingled investment

vehicles or insurance company general or separate accounts in which such plans or arrangements are invested (collectively, “Plans”),

and on persons who are fiduciaries with respect to the investment of “plan assets” of a Plan.

Government plans and

some church plans are not subject to the fiduciary responsibility provisions of ERISA or the provisions of section 4975 of the

Code, but may be subject to substantially similar rules under other federal law, or under state or local law (“Other Law”).

In contemplating an investment of a portion of Plan assets in

Shares, the Plan fiduciary responsible for making such investment should carefully consider, taking into account the facts and

circumstances of the Plan and the “Risk Factors” discussed above and whether such investment is consistent with its

fiduciary responsibilities under ERISA or Other Law, including, but not limited to:

(1) whether the investment is permitted under

the Plan’s governing documents, (2) whether the fiduciary has the authority to make the investment, (3) whether the investment

is consistent with the Plan’s funding objectives, (4) the tax effects of the investment on the Plan, and (5) whether the

investment is prudent considering the factors discussed in this report.

In addition, ERISA and Code section 4975 prohibit a broad

range of transactions involving assets of a plan and persons who are “parties in interest” under ERISA or “disqualified

persons” under section 4975 of the Code.

A violation of these rules may result in the imposition of significant excise taxes

and other liabilities.

Plans subject to Other Law may be subject to similar restrictions.

It is anticipated that the Shares will constitute “publicly

offered securities” as defined in the Department of Labor “Plan Asset Regulations,” §2510.3-101 (b)(2) as

modified by section 3(42) of ERISA.

Accordingly, pursuant to the Plan Asset Regulations, only Shares purchased by a Plan, and not

an interest in the underlying assets held in the Trust, should be treated as assets of the Plan, for purposes of applying the “fiduciary

responsibility” rules of ERISA and the “prohibited transaction” rules of ERISA and the Code.

Fiduciaries of plans

subject to Other Law should consult legal counsel to determine whether there would be a similar result under the Other Law.

Investment by Certain Retirement Plans

Code section 408(m) provides that the acquisition of a “collectible”

by an individual retirement account (“IRA”) or a participant-directed account maintained under any plan that is tax-qualified

under Code section 401(a) (“Tax Qualified Account”) is treated as a taxable distribution from the account to the owner

of the IRA, or to the participant for whom the Tax Qualified Account is maintained, of an amount equal to the cost to the account

of acquiring the collectible.

The term “collectible” is defined to include, with certain exceptions, “any metal

The IRS has issued several private letter rulings to the effect that a purchase by an IRA, or by a participant-directed

account under a Code section 401(a) plan, of publicly-traded shares in a trust holding silver will not be treated as resulting

in a taxable distribution to the IRA owner or Tax Qualified Account participant under Code section 408(m).

However the private

letter rulings provide that, if any of the Shares so purchased are distributed from the IRA or Tax Qualified Account to the IRA

owner or Tax Qualified Account participant, or if any silver is received by such IRA or Tax Qualified Account upon the redemption

of any of the Shares purchased by it, the Shares or silver so distributed will be subject to federal income tax in the year

of distribution, to the extent provided under the applicable provisions of Code sections 408(d), 408(m) or 402.

Accordingly, potential

IRA or Tax Qualified Account investors are urged to consult with their own professional advisors concerning the treatment of an

investment in Shares under Code section 408(m).

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business