iShares Silver Trust 10-Q

Item 1. Financial Statements iShares ® Silver Trust Statements of Assets and Liabilities (Unaudited) At September 30, 2024 and December 31, 2023 September 30, 2024 December 31, 2023 Assets Investment in silver bullion, at fair value (a) $ 14,580,341,237 $ 10,393,666,180 Total Assets 14,580,341,237 10,393,666,180 Liabilities Sponsor’s fees payable 5,739,559 4,488,405 Total Liabilities 5,739,559 4,488,405 Commitments and contingent liabilities (Note 6) — — Net Assets $ 14,574,601,678 $ 10,389,177,775 Shares issued and outstanding (b) 514,200,000 477,000,000 Net asset value per Share (Note 2C) $ 28.34 $ 21.78 (a) Cost of investment in silver bullion: $11,352,007,744 and $9,616,427,847, respectively. (b) No par value, unlimited amount authorized. See notes to financial statements. 1 Table of Contents iShares ® Silver Trust Statements of Operations (Unaudited) For the three and nine months ended September 30, 2024 and 2023 Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Expenses Sponsor’s fees $ 16,928,398 $ 13,376,846 $ 44,720,517 $ 40,630,780 Total expenses 16,928,398 13,376,846 44,720,517 40,630,780 Net investment loss ( 16,928,398 ) ( 13,376,846 ) ( 44,720,517 ) ( 40,630,780 ) Net Realized and Unrealized Gain (Loss) Net realized gain from: Litigation proceeds (a) 138,783 — 138,783 — Silver bullion sold to pay expenses 2,926,466 1,173,908 6,118,434 3,268,706 Silver bullion distributed for the redemption of Shares 269,781,344 94,335,795 765,560,025 223,155,474 Net realized gain 272,846,593 95,509,703 771,817,242 226,424,180 Net change in unrealized appreciation/depreciation 544,712,454 220,590,322 2,451,095,160 ( 640,962,589 ) Net realized and unrealized gain (loss) 817,559,047 316,100,025 3,222,912,402 ( 414,538,409 ) Net increase (decrease) in net assets resulting from operations $ 800,630,649 $ 302,723,179 $ 3,178,191,885 $ ( 455,169,189 ) Net increase (decrease) in net assets per Share (b) $ 1.59 $ 0.62 $ 6.61 $ ( 0.90 ) (a) Represents a payment received from a class action settlement related to silver. (b) Net increase (decrease) in net assets per Share based on average shares outstanding during the period. See notes to financial statements. 2 Table of Contents iShares ® Silver Trust Statements of Changes in Net Assets (Unaudited) For the three, six and nine months ended September 30, 2024 Nine Months Ended September 30, 2024 Net Assets at December 31, 2023 $ 10,389,177,775 Operations: Net investment loss ( 12,537,998 ) Net realized gain 82,744,209 Net change in unrealized appreciation/depreciation 226,214,620 Net increase in net assets resulting from operations 296,420,831 Capital Share Transactions: Contributions for Shares issued 1,314,477,812 Distributions for Shares redeemed ( 1,432,431,212 ) Net decrease in net assets from capital share transactions ( 117,953,400 ) Increase in net assets 178,467,431 Net Assets at March 31, 2024 $ 10,567,645,206 Operations: Net investment loss ( 15,254,121 ) Net realized gain 416,226,440 Net change in unrealized appreciation/depreciation 1,680,168,086 Net increase in net assets resulting from operations 2,081,140,405 Capital Share Transactions: Contributions for Shares issued 2,115,572,235 Distributions for Shares redeemed ( 1,921,737,558 ) Net increase in net assets from capital share transactions 193,834,677 Increase in net assets 2,274,975,082 Net Assets at June 30, 2024 $ 12,842,620,288 Operations: Net investment loss ( 16,928,398 ) Net realized gain 272,846,593 Net change in unrealized appreciation/depreciation 544,712,454 Net increase in net assets resulting from operations 800,630,649 Capital Share Transactions: Contributions for Shares issued 2,280,397,964 Distributions for Shares redeemed ( 1,349,047,223 ) Net increase in net assets from capital share transactions 931,350,741 Increase in net assets 1,731,981,390 Net Assets at September 30, 2024 $ 14,574,601,678 Shares issued and redeemed Shares issued 226,950,000 Shares redeemed ( 189,750,000 ) Net increase in Shares issued and outstanding 37,200,000 See notes to financial statements. 3 Table of Contents iShares ® Silver Trust Statements of Changes in Net Assets (Unaudited) For the three, six and nine months ended September 30, 2023 Nine Months Ended September 30, 2023 Net Assets at December 31, 2022 $ 11,160,084,971 Operations: Net investment loss ( 13,133,630 ) Net realized gain 49,953,315 Net change in unrealized appreciation/depreciation ( 115,731,699 ) Net decrease in net assets resulting from operations ( 78,912,014 ) Capital Share Transactions: Contributions for Shares issued 1,316,358,763 Distributions for Shares redeemed ( 1,320,595,807 ) Net decrease in net assets from capital share transactions ( 4,237,044 ) Decrease in net assets ( 83,149,058 ) Net Assets at March 31, 2023 $ 11,076,935,913 Operations: Net investment loss ( 14,120,304 ) Net realized gain 80,961,162 Net change in unrealized appreciation/depreciation ( 745,821,212 ) Net decrease in net assets resulting from operations ( 678,980,354 ) Capital Share Transactions: Contributions for Shares issued 868,097,632 Distributions for Shares redeemed ( 751,430,827 ) Net increase in net assets from capital share transactions 116,666,805 Decrease in net assets ( 562,313,549 ) Net Assets at June 30, 2023 $ 10,514,622,364 Operations: Net investment loss ( 13,376,846 ) Net realized gain 95,509,703 Net change in unrealized appreciation/depreciation 220,590,322 Net increase in net assets resulting from operations 302,723,179 Capital Share Transactions: Contributions for Shares issued 574,160,545 Distributions for Shares redeemed ( 1,199,300,449 ) Net decrease in net assets from capital share transactions ( 625,139,904 ) Decrease in net assets ( 322,416,725 ) Net Assets at September 30, 2023 $ 10,192,205,639 Shares issued and redeemed Shares issued 127,800,000 Shares redeemed ( 152,500,000 ) Net decrease in Shares issued and outstanding ( 24,700,000 ) See notes to financial statements. 4 Table of Contents iShares ® Silver Trust Statements of Cash Flows (Unaudited) For the nine months ended September 30, 2024 and 2023 Nine Months Ended September 30, 2024 2023 Cash Flows from Operating Activities Proceeds from silver bullion sold to pay expenses $ 43,469,363 $ 41,011,719 Expenses – Sponsor’s fees paid ( 43,469,363 ) ( 41,011,719 ) Net cash provided by operating activities — — Increase (decrease) in cash — — Cash, beginning of period — — Cash, end of period $ — $ — Reconciliation of Net Increase (Decrease) in Net Assets Resulting from Operations to Net Cash Provided by (Used in) Operating Activities Net increase (decrease) in net assets resulting from operations $ 3,178,191,885 $ ( 455,169,189 ) Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: Proceeds from silver bullion sold to pay expenses 43,469,363 41,011,719 Litigation Proceeds (a) ( 138,783 ) — Net realized (gain) loss ( 771,678,459 ) ( 226,424,180 ) Net change in unrealized appreciation/depreciation ( 2,451,095,160 ) 640,962,589 Change in operating assets and liabilities: Sponsor’s fees payable 1,251,154 ( 380,939 ) Net cash provided by (used in) operating activities $ — $ — Supplemental disclosure of non-cash information: Silver bullion contributed for Shares issued $ 5,710,448,011 $ 2,758,616,940 Silver bullion distributed for Shares redeemed $ ( 4,703,215,993 ) $ ( 3,271,327,083 ) (a) Represents a payment received from a class action settlement related to silver. See notes to financial statements. 5 Table of Contents iShares ® Silver Trust Schedules of Investments (Unaudited) At September 30, 2024 and December 31, 2023 September 30, 2024 Description Ounces Cost Fair Value Silver bullion 469,198,431 $ 11,352,007,744 $ 14,580,341,237 Total Investments — 100.04 % 14,580,341,237 Less Liabilities — (0.04) % ( 5,739,559 ) Net Assets — 100.00 % $ 14,574,601,678 December 31, 2023 Description Ounces Cost Fair Value Silver bullion 436,892,231 $ 9,616,427,847 $ 10,393,666,180 Total Investments — 100.04 % 10,393,666,180 Less Liabilities — (0.04) % ( 4,488,405 ) Net Assets — 100.00 % $ 10,389,177,775 See notes to financial statements. 6 Table of Contents iShares ® Silver Trust Notes to Financial Statements (Unaudited) September 30, 2024 1 - Organization The iShares Silver Trust (the “Trust”) was organized on April 21, 2006 as a New York trust. The trustee is The Bank of New York Mellon (the “Trustee”), which is responsible for the day-to-day administration of the Trust. The Trust’s sponsor is iShares Delaware Trust Sponsor LLC, a Delaware limited liability company (the “Sponsor”). The Trust is governed by the provisions of the Third Amended and Restated Depositary Trust Agreement (the “Trust Agreement”) executed by the Trustee and the Sponsor as of January 31, 2022. The Trust issues units of beneficial interest (“Shares”) representing fractional undivided beneficial interests in its net assets. The Trust seeks to reflect generally the performance of the price of silver. The Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities. The Trust is designed to provide a vehicle for investors to make an investment similar to an investment in silver. The accompanying unaudited financial statements were prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions for Form 10 -Q and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). In the opinion of management, all material adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of the interim period financial statements, have been made. Interim period results are not necessarily indicative of results for a full-year period. These financial statements and the notes thereto should be read in conjunction with the Trust’s financial statements included in its Annual Report on Form 10 -K for the year ended December 31, 2023, as filed with the SEC on February 20, 2024. The Trust qualifies as an investment company solely for accounting purposes and not for any other purpose and follows the accounting and reporting guidance under the Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services - Investment Companies, but is not registered, and is not required to be registered, as an investment company under the Investment Company Act of 1940, as amended. 2 - Significant Accounting Policies A. Basis of Accounting The following significant accounting policies are consistently followed by the Trust in the preparation of its financial statements in conformity with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. B. Silver Bullion JPMorgan Chase Bank N.A., London branch (the “Custodian”), is responsible for the safekeeping of silver bullion owned by the Trust. Fair value of the silver bullion held by the Trust is based on the price per ounce of silver determined in an electronic auction consisting of one or more 30‑second rounds hosted by ICE Benchmark Administration (“IBA”) that begins at 12:00 p.m. (London time) and published shortly thereafter on each day that the London silver market is open for business (such price, the “LBMA Silver Price”). If there is no announced LBMA Silver Price on any day, the Trustee is authorized to use the most recently announced LBMA Silver Price unless the Trustee, in consultation with the Sponsor, determines that such price is inappropriate as a basis for evaluation. Gain or loss on sales of silver bullion is calculated on a trade date basis using the average cost method. 7 Table of Contents The following tables summarize activity in silver bullion for the three months ended September 30, 2024 and 2023: Three Months Ended September 30, 2024 Ounces Cost Fair Value Realized Gain (Loss) Beginning balance 437,447,866 $ 10,164,222,786 $ 12,847,843,825 $ — Silver bullion contributed 77,719,368 2,280,397,964 2,280,397,964 — Silver bullion distributed ( 45,404,182 ) ( 1,079,265,879 ) ( 1,349,047,223 ) 269,781,344 Silver bullion sold to pay expenses ( 564,621 ) ( 13,347,127 ) ( 16,412,376 ) 2,926,466 Net realized gain — — 272,707,810 — Litigation Proceeds (a) — — 138,783 — Net change in unrealized appreciation/depreciation — — 544,712,454 — Ending balance 469,198,431 $ 11,352,007,744 $ 14,580,341,237 $ 272,707,810 (a) Includes a payment received from a class action settlement related to silver of $ 138,783 . Three Months Ended September 30, 2023 Ounces Cost Fair Value Realized Gain (Loss) Beginning balance 468,141,099 $ 10,241,526,716 $ 10,519,130,507 $ — Silver bullion contributed 24,759,188 574,160,545 574,160,545 — Silver bullion distributed ( 50,447,767 ) ( 1,104,964,654 ) ( 1,199,300,449 ) 94,335,795 Silver bullion sold to pay expenses ( 569,154 ) ( 12,458,065 ) ( 13,631,973 ) 1,173,908 Net realized gain — — 95,509,703 — Net change in unrealized appreciation/depreciation — — 220,590,322 — Ending balance 441,883,366 $ 9,698,264,542 $ 10,196,458,655 $ 95,509,703 The following tables summarize activity in silver bullion for the nine months ended September 30, 2024 and 2023: Nine Months Ended September 30, 2024 Ounces Cost Fair Value Realized Gain (Loss) Beginning balance 436,892,231 $ 9,616,427,847 $ 10,393,666,180 $ — Silver bullion contributed 207,366,267 5,710,448,011 5,710,448,011 — Silver bullion distributed ( 173,423,885 ) ( 3,937,655,968 ) ( 4,703,215,993 ) 765,560,025 Silver bullion sold to pay expenses ( 1,636,182 ) ( 37,212,146 ) ( 43,469,363 ) 6,118,434 Net realized gain — — 771,678,459 — Litigation Proceeds (a) — — 138,783 — Net change in unrealized appreciation/depreciation — — 2,451,095,160 — Ending balance 469,198,431 $ 11,352,007,744 $ 14,580,341,237 $ 771,678,459 (a) Includes a payment received from a class action settlement related to silver of $ 138,783 . Nine Months Ended September 30, 2023 Ounces Cost Fair Value Realized Gain (Loss) Beginning balance 466,265,146 $ 10,025,562,224 $ 11,164,718,926 $ — Silver bullion contributed 117,411,787 2,758,616,940 2,758,616,940 — Silver bullion distributed ( 140,058,647 ) ( 3,048,171,609 ) ( 3,271,327,083 ) 223,155,474 Silver bullion sold to pay expenses ( 1,734,920 ) ( 37,743,013 ) ( 41,011,719 ) 3,268,706 Net realized gain — — 226,424,180 — Net change in unrealized appreciation/depreciation — — ( 640,962,589 ) — Ending balance 441,883,366 $ 9,698,264,542 $ 10,196,458,655 $ 226,424,180 C. Calculation of Net Asset Value On each business day, as soon as practicable after 4:00 p.m. (New York time), the net asset value of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the fair value of the silver and other assets held by the Trust. The Trustee computes the net asset value per Share by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made. D. Offering of the Shares Shares are issued and redeemed continuously in aggregations of 50,000 Shares in exchange for silver bullion rather than cash. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. The Trust only transacts with registered broker-dealers that are eligible to settle securities transactions through the book-entry facilities of the Depository Trust Company and that have entered into a contractual arrangement with the Trustee and the Sponsor governing, among other matters, the creation and redemption of Shares (such broker-dealers, the “Authorized Participants”). Holders of Shares of the Trust may redeem their Shares at any time acting through an Authorized Participant and in the prescribed aggregations of 50,000 Shares; provided , that redemptions of Shares may be suspended during any period while regular trading on NYSE Arca, Inc. (“NYSE Arca”) is suspended or restricted, or in which an emergency exists as a result of which delivery, disposal or evaluation of silver is not reasonably practicable. The per Share amount of silver exchanged for a purchase or redemption represents the per Share amount of silver held by the Trust, after giving effect to its liabilities. When silver bullion is exchanged in settlement of a redemption, it is considered a sale of silver bullion for accounting purposes. 8 Table of Contents E. Federal Income Taxes The Trust is treated as a grantor trust for federal income tax purposes and, therefore, no provision for federal income taxes is required. Any interest, expenses, gains and losses are passed through to the holders of Shares of the Trust. The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust as of September 30, 2024 and does not believe that there are any uncertain tax positions that require recognition of a tax liability. 3 - Trust Expenses The Sponsor’s fee is accrued daily at an annualized rate equal to 0.50 % of the net asset value of the Trust, paid monthly in arrears. The Sponsor has agreed to assume the following administrative and marketing expenses incurred by the Trust: the Trustee’s fee and reimbursement for its reasonable out‑of‑pocket expenses, the Custodian’s fee, NYSE Arca listing fees, SEC registration fees, printing and mailing costs, audit fees and expenses, and up to $ 500,000 per annum in legal fees and expenses. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Trust in excess of the amount required under the Trust Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Trust. 4 - Related Parties The Sponsor and the Trustee are considered to be related parties to the Trust. The Trustee’s fee is paid by the Sponsor and is not a separate expense of the Trust. 5 - Indemnification The Trust Agreement provides that the Trustee shall indemnify the Sponsor, its directors, employees and agents against, and hold each of them harmless from, any loss, liability, cost, expense or judgment (including reasonable fees and expenses of counsel) (i) caused by the negligence or bad faith of the Trustee or (ii) arising out of any information furnished in writing to the Sponsor by the Trustee expressly for use in the registration statement, or any amendment thereto or periodic or other report filed with the SEC relating to the Shares that is not materially altered by the Sponsor. The Trust Agreement provides that the Sponsor and its shareholders, directors, officers, employees, affiliates (as such term is defined under the Securities Act of 1933, as amended) and subsidiaries shall be indemnified from the Trust and held harmless against any loss, liability or expense incurred without their ( 1 ) negligence, bad faith, willful misconduct or willful malfeasance arising out of or in connection with the performance of their obligations under the Trust Agreement or any actions taken in accordance with the provisions of the Trust Agreement or ( 2 ) reckless disregard of their obligations and duties under the Trust Agreement. The Trust has agreed that the Custodian will only be responsible for any loss or damage suffered by the Trust as a direct result of the Custodian’s negligence, fraud or willful default in the performance of its duties. The Trust’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Trust, which cannot be predicted with any certainty. 6 - Commitments and Contingent Liabilities In the normal course of business, the Trust may enter into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust, which cannot be predicted with any certainty. 7 - Concentration Risk Substantially all of the Trust’s assets are holdings of silver bullion, which creates a concentration risk associated with fluctuations in the price of silver. Accordingly, a decline in the price of silver will have an adverse effect on the value of the Shares of the Trust. Factors that may have the effect of causing a decline in the price of silver include a change in economic conditions (such as a recession); a significant increase in the hedging activities of silver producers; significant changes in the attitude of speculators, investors and other market participants towards silver; global silver supply and demand; global or regional political, economic or financial events and situations; investors’ expectations with respect to the rate of inflation; interest rates; investment and trading activities of hedge funds and commodity funds; other economic variables such as income growth, economic output, and monetary policies; and investor confidence. 9 Table of Contents 8 - Financial Highlights The following financial highlights relate to investment performance and operations for a Share outstanding for the three and nine months ended September 30, 2024 and 2023. Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net asset value per Share, beginning of period $ 26.82 $ 20.62 $ 21.78 $ 22.03 Net investment loss (a) ( 0.03 ) ( 0.03 ) ( 0.09 ) ( 0.08 ) Net realized and unrealized gain (loss) (b) 1.55 0.56 6.65 ( 0.80 ) Net increase (decrease) in net assets from operations 1.52 0.53 6.56 ( 0.88 ) Net asset value per Share, end of period $ 28.34 $ 21.15 $ 28.34 $ 21.15 Total return, at net asset value (c)(d) 5.67 % 2.57 % 30.12 % ( 3.99 )% Ratio to average net assets: Net investment loss (e) ( 0.50 )% ( 0.50 )% ( 0.50 )% ( 0.50 )% Expenses (e) 0.50 % 0.50 % 0.50 % 0.50 % (a) Based on average Shares outstanding during the period. (b) The amounts reported for a Share outstanding may not accord with the change in aggregate gains and losses on investment for the period due to the timing of Share transactions in relation to the fluctuating fair values of the Trust’s underlying investment. (c) Based on the change in net asset value of a Share during the period. (d) Percentage is not annualized. (e) Percentage is annualized. 9 - Investment Valuation U.S. GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trust’s policy is to value its investment at fair value. Various inputs are used in determining the fair value of assets and liabilities. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows: Level 1 −  Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 −  Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3 −  Unobservable inputs that are unobservable for the asset or liability, including the Trust’s assumptions used in determining the fair value of investments. At September 30, 2024 and December 31, 2023, the value of the silver bullion held by the Trust is categorized as Level 1. 10 Table of Contents Item 2. Management ’ s Discussion and Analysis of Financial Condition and Results of Operations. This information should be read in conjunction with the financial statements and notes to financial statements included in Item 1 of Part I of this Form 10‑Q. The discussion and analysis that follows may contain statements that relate to future events or future performance. In some cases, such forward‑looking statements can be identified by terminology such as “may,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses made by the Sponsor on the basis of its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. Whether or not actual results and developments will conform to the Sponsor’s expectations and predictions, however, is subject to a number of risks and uncertainties, including the special considerations discussed below, general economic, market and business conditions, changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies, and other world economic and political developments. Although the Sponsor does not make forward-looking statements unless it believes it has a reasonable basis for doing so, the Sponsor cannot guarantee their accuracy. Except as required by applicable disclosure laws, neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements to conform such statements to actual results or to a change in the Sponsor’s expectations or predictions. Introduction The iShares Silver Trust (the “Trust”) is a grantor trust formed under the laws of the State of New York. The Trust does not have any officers, directors, or employees, and is administered by The Bank of New York Mellon (the “Trustee”) acting as trustee pursuant to the Third Amended and Restated Depositary Trust Agreement (the “Trust Agreement”) between the Trustee and iShares Delaware Trust Sponsor LLC, the sponsor of the Trust (the “Sponsor”). The Trust issues units of beneficial interest (“Shares”) representing fractional undivided beneficial interests in its net assets. The assets of the Trust consist primarily of silver bullion held by a custodian as an agent of the Trust responsible only to the Trustee. The Trust is a passive investment vehicle and seeks to reflect generally the performance of the price of silver. The Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities. The Trust does not engage in any activities designed to obtain a profit from, or ameliorate losses caused by, changes in the price of silver. The Trust issues and redeems Shares only in exchange for silver, only in aggregations of 50,000 Shares (a “Basket”) or integral multiples thereof, and only in transactions with registered broker-dealers that have previously entered into an agreement with the Sponsor and the Trustee governing the terms and conditions of such issuance (such broker-dealers, the “Authorized Participants”). A list of the current Authorized Participants is available from the Sponsor or the Trustee. Shares of the Trust trade on NYSE Arca, Inc. under the ticker symbol SLV. Valuation of Silver Bullion ; Computation of Net Asset Value On each business day, as soon as practicable after 4:00 p.m. (New York time), the Trustee evaluates the silver held by the Trust and determines the net asset value of the Trust and net asset value per Share (“NAV”). The Trustee values the silver held by the Trust using the price per ounce of silver determined in an electronic auction hosted by ICE Benchmark Administration (“IBA”) that begins at 12:00 p.m. (London time) and published shortly thereafter, on the day the valuation takes place (such price, the “LBMA Silver Price”). If there is no announced LBMA Silver Price on any day, the Trustee is authorized to use the most recently announced LBMA Silver Price unless the Trustee, in consultation with the Sponsor, determines that such price is inappropriate as a basis for evaluation. The LBMA Silver Price is used by the Trust because it is commonly used by the U.S. silver market as an indicator of the value of silver and is permitted to be used under the Trust Agreement. The use of an indicator of the value of silver bullion other than the LBMA Silver Price could result in materially different fair value pricing of the silver held by the Trust, and as such, could result in different cost or market adjustments or in different redemption value adjustments of the outstanding redeemable capital Shares. Having valued the silver held by the Trust, the Trustee then subtracts all accrued fees, expenses and other liabilities of the Trust from the total value of the silver and other assets held by the Trust. The result is the net asset value of the Trust. The Trustee computes NAV by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made. Liquidity The Trust is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to its liquidity needs. In exchange for a fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only ordinary expense of the Trust during the period covered by this report was the Sponsor’s fee. The Trust’s only source of liquidity is its sales of silver. Critical Accounting Policies The financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles in the United States of America. The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations. These estimates and assumptions affect the Trust’s application of accounting policies. A description of the valuation of silver bullion, a critical accounting policy that the Trust believes is important to understanding its results of operations and financial position, is provided in the section entitled “Valuation of Silver Bullion; Computation of Net Asset Value” above. In addition, please refer to Note 2 to the financial statements included in this report for further discussion of the Trust’s accounting policies. 11 Table of Contents Results of Operations The Quarter Ended September 30, 2024 The Trust’s net asset value increased from $12,842,620,288 at June 30, 2024 to $14,574,601,678 at September 30, 2024, a 13.49% increase. The increase in the Trust’s net asset value resulted primarily from an increase in the number of outstanding Shares, which rose from 478,800,000 Shares at June 30, 2024 to 514,200,000 Shares at September 30, 2024, a consequence of 85,150,000 Shares (1,703 Baskets) being created and 49,750,000 Shares (995 Baskets) being redeemed during the quarter. The increase in the Trust’s net asset value also benefitted from an increase in the price of silver, which grew 5.82% from $29.37 at June 30, 2024 to $31.08 at September 30, 2024. The 5.67% increase in the NAV from $26.82 at June 30, 2024 to $28.34 at September 30, 2024 is directly related to the 5.82% increase in the price of silver. The NAV increased slightly less than the price of silver on a percentage basis due to the Sponsor’s fees, which were $16,928,398 for the quarter, or 0.13% of the Trust’s average weighted assets of $13,488,289,860 during the quarter. The NAV of $29.63 on September 26, 2024 was the highest during the quarter, compared with a low during the quarter of $24.58 on August 8, 2024. Net increase in net assets resulting from operations for the quarter ended September 30, 2024 was $800,630,649, resulting from an unrealized gain on investment in silver bullion of $544,712,454, a net realized gain of $269,781,344 on silver bullion distributed for the redemption of Shares, a net realized gain of $2,926,466 from investment in silver bullion sold to pay expenses and a net realized gain of $138,783 from litigation proceeds during the quarter, partially offset by a net investment loss of $16,928,398. Other than the Sponsor’s fees of $16,928,398, the Trust had no expenses during the quarter. The Nine-Month Period Ended September 30, 2024 The Trust’s net asset value increased from $10,389,177,775 at December 31, 2023 to $14,574,601,678 at September 30, 2024, a 40.29% increase. The increase in the Trust’s net asset value resulted primarily from an increase in the price of silver, which grew 30.64% from $23.79 at December 31, 2023 to $31.08 at September 30, 2024. The increase in the Trust’s net asset value also benefitted from an increase in the number of outstanding Shares, which rose from 477,000,000 Shares at December 31, 2023 to 514,200,000 Shares at September 30, 2024, a consequence of 226,950,000 Shares (4,539 Baskets) being created and 189,750,000 Shares (3,795 Baskets) being redeemed during the period. The 30.12% increase in the NAV from $21.78 at December 31, 2023 to $28.34 at September 30, 2024 is directly related to the 30.64% increase in the price of silver. The NAV increased slightly less than the price of silver on a percentage basis due to the Sponsor’s fees, which were $44,720,517 for the period, or 0.37% of the Trust’s average weighted assets of $11,964,851,765 during the period. The NAV of $29.63 on September 26, 2024 was the highest during the period, compared with a low during the period of $20.21 on February 14, 2024. Net increase in net assets resulting from operations for the nine months ended September 30, 2024 was $3,178,191,885, resulting from an unrealized gain on investment in silver bullion of $2,451,095,160, a net realized gain of $765,560,025 on silver bullion distributed for the redemption of Shares, a net realized gain of $6,118,434 from investment in silver bullion sold to pay expenses and a net realized gain of $138,783 from litigation proceeds during the period, partially offset by a net investment loss of $44,720,517. Other than the Sponsor’s fees of $44,720,517, the Trust had no expenses during the period. Item 3. Quantitative and Qualitative Disclosures About Market Risk. Not applicable.