iShares Silver Trust (SLV) risk factors, FY2024 10-K

Risks Related to Silver

1. 01Actual or perceived disruptions in the processes used to determine the LBMA Silver Price, or lack of confidence in that benchmark, may adversely affect the return on your investment in the Shares (if any)
2. 02Because the objective of the Trust is to reflect the performance of the price of silver, any disruptions affecting the processes related to how the market determines the price of silver will have an effect on the value of the Shares
3. 03Investors should keep in mind that electronic markets are not exempt from failures, as the experiences of the initial public offerings of Facebook and BATS Global Markets illustrate
4. 04The LBMA Silver Price is regulated by the Financial Conduct Authority of the United Kingdom (the “FCA”)
5. 05Future governmental decisions may have significant impact on the price of silver, which may result in a significant decrease or increase in the value of the net assets and the net asset value of the Trust
6. 06Because the Trust holds only silver, an investment in the Trust may be more volatile than an investment in a more broadly diversified portfolio
7. 07The demand for silver may temporarily exceed available supply that is acceptable for delivery to the Trust, which may adversely affect an investment in the Shares

Risks Related to the Shares

1. 08A sudden increase in demand for Shares that temporarily exceeds supply may result in price volatility of the Shares
2. 09The trading price of the Shares has recently been, and could potentially continue to be, volatile
3. 10Because the Shares are created to reflect the price of the silver held by the Trust, the market price of the Shares will be as unpredictable as the price of silver has historically been. This creates the potential for losses, regardless of whether you hold Shares for a short-, mid- or long-term period
4. 11Conversely, several factors may trigger a temporary increase in the price of silver prior to your investment in the Shares. If that is the case, you will be buying Shares at prices affected by the temporarily high prices of silver, and you may incur losses when the causes for the temporary increase disappear
5. 12Furthermore, although silver has been used as a portfolio diversifier due to its historically low-to-negative correlation with stocks and bonds, diversification does not ensure against, nor can it prevent against, risk of loss
6. 13The Trust is a passive investment vehicle. The Trust is not actively managed and will be affected by a general decline in the price of silver
7. 14The result obtained by subtracting the Trust’s expenses and liabilities on any day from the price of the silver owned by the Trust on that day is the net asset value of the Trust which, when divided by the number of Shares outstanding on that day, results in the NAV
8. 15The costs inherent in buying or selling the Shares may detract significantly from investment results
9. 16An investment in the Shares may be adversely affected by competition from other methods of investing in silver
10. 17The Trust is designed to have a perpetual existence; however, if certain events occur, at any time, the Trustee will have to terminate the Trust
11. 18In the event that one or more Authorized Participants that have substantial interests in Shares withdraw from participation, the liquidity of the Shares will likely decrease, which could adversely affect the market price of the Shares and result in your incurring a loss on your investment in Shares
12. 19Authorized Participants with large holdings may choose to terminate the Trust
13. 20The lack of an active trading market for the Shares may result in losses on your investment at the time of disposition of your Shares
14. 21As an owner of Shares, you will not have the protections normally associated with ownership of shares in an investment company registered under the Investment Company Act, or the protections afforded by the CEA
15. 22The value of the Shares will be adversely affected if the Trust is required to indemnify the Sponsor or the Custodian as contemplated in the Trust Agreement and the Custodian Agreement

Risks Related to the Trust and Its Operations

1. 23The Trust is exposed to various operational risks
2. 24The Trust may be negatively impacted by the effects of the spread of illnesses or other public health emergencies on the global economy and the markets and service providers relevant to the performance of the Trust
3. 25The Sponsor and its affiliates manage other accounts, funds or trusts, including those that invest in silver bullion or other precious metals, and conflicts of interest may occur, which may reduce the value of the net assets of the Trust, the NAV and the trading price of the Shares
4. 26The Sponsor and the Trustee may agree to amend the Trust Agreement without the consent of the Shareholders

Risks Related to the Custody of Silver

1. 27The bullion custody operations of the Custodian are not subject to specific governmental regulatory supervision
2. 28The value of the Shares will be adversely affected if silver owned by the Trust is lost or damaged in circumstances in which the Trust is not able to recover the corresponding loss
3. 29Any loss of silver owned by the Trust will result in a corresponding loss in the NAV and it is reasonable to expect that such loss will also result in a decrease in the value at which the Shares are traded on NYSE Arca
4. 30Neither the Shareholders nor any Authorized Participant have a right under the Custodian Agreement to assert a claim of the Trustee against the Custodian. Claims under the Custodian Agreement may only be asserted by the Trustee on behalf of the Trust
5. 31The Trust’s lack of insurance protection and the Shareholders’ limited rights of legal recourse against the Trust, the Trustee, the Sponsor, the Custodian and any sub-custodian expose the Shareholders to the risk of loss of the Trust’s silver for which no person is liable