Note 2 - Significant Accounting Policies

3 Months Ended

Mar. 31, 2025

Significant Accounting Policies [Text Block]

2 -

Significant Accounting Policies

A.	Basis of Accounting

The following significant accounting policies are consistently followed by the Trust in the preparation of its financial statements in conformity with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

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.

The following tables summarize activity in silver bullion for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31, 2025	Ounces			Cost			Fair Value			Realized Gain (Loss)
Beginning balance		463,837,932		$	11,628,353,352		$	13,407,235,411		$	—
Silver bullion contributed		66,224,506			2,148,318,301			2,148,318,301			—
Silver bullion distributed		(81,530,230	)		(2,070,502,802	)		(2,585,212,588	)		514,709,786
Silver bullion sold to pay expenses		(564,030	)		(14,254,523	)		(17,305,788	)		3,051,265
Net realized gain		—			—			517,761,051			—
Net change in unrealized appreciation/depreciation		—			—			1,784,759,917			—
Ending balance		447,968,178		$	11,691,914,328		$	15,255,556,304		$	517,761,051

Three Months Ended March 31, 2024	Ounces			Cost			Fair Value			Realized Gain (Loss)
Beginning balance		436,892,231		$	9,616,427,847		$	10,393,666,180		$	—
Silver bullion contributed		55,670,911			1,314,477,812			1,314,477,812			—
Silver bullion distributed		(61,208,264	)		(1,350,281,409	)		(1,432,431,212	)		82,149,803
Silver bullion sold to pay expenses		(547,987	)		(12,076,106	)		(12,670,512	)		594,406
Net realized gain		—			—			82,744,209			—
Net change in unrealized appreciation/depreciation		—			—			226,214,620			—
Ending balance		430,806,891		$	9,568,548,144		$	10,572,001,097		$	82,744,209

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.

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 March 31, 2025 and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

F.	Segment Reporting

The Chief Financial Officer of the Sponsor acts as the Trust’s Chief Operating Decision Maker (“CODM”) and is responsible for assessing performance and allocating resources with respect to the Trust. The CODM has concluded that the Trust operates as a single operating segment since the Trust has a single investment strategy as disclosed in its prospectus, against which the CODM assesses performance. The financial information provided to and reviewed by the CODM is presented within the Trust’s financial statements.

iShares Silver Trust 10-Q