What changed in this filing

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Item 1. Financial Statements

2020-08-05 compared with 2020-05-07 · 230 added, 99 removed, 254 unchanged (56% of the section changed)

Financial Statements

iShares Silver Trust

iShares ®

Statements of Assets and Liabilities (Unaudited)

At March 31, 2020 and December 31, 2019

At June 30, 2020 and December 31, 2019

Investment in silver bullion, at fair value (a)

5,507,482,733

6,543,418,555

5,507,482,733

6,543,418,555

$ 8,886,943,805  

$ 6,543,418,555  

8,886,943,805  

6,543,418,555  

Sponsor’s fees payable

3,486,918  

2,659,990  

Total Liabilities

3,486,918  

2,659,990  

Commitments and contingent liabilities (Note 6)

5,505,117,093

6,540,758,565

$ 8,883,456,887  

$ 6,540,758,565  

Shares issued and outstanding (b)

534,350,000  

388,100,000  

Net asset value per Share (Note 2C)

Cost of investment in silver bullion:

$6,681,432,888 and $6,294,157,046, respectively.

No par value, unlimited amount authorized.

$ 16.62  

$ 16.85  

Cost of investment in silver bullion: $8,374,199,813 and $6,294,157,046, respectively.

No par value, unlimited amount authorized.

See notes to financial statements.

iShares Silver Trust

iShares ®

Statements of Operations (Unaudited)

For the three months ended March 31, 2020 and 2019

For the three and six months ended June 30, 2020 and 2019

Three Months Ended

Six Months Ended

Sponsor’s fees

8 unchanged sentences

1,686,694,147

Net realized and unrealized loss

( 1,432,782,373

( 112,251,701

Net decrease in net assets resulting from operations

Net realized and unrealized gain (loss)

1,675,551,278

Net increase (decrease) in net assets resulting from operations

1,666,597,884

Net decrease in net assets per Share (a)

Net decrease in net assets per Share based on average shares outstanding during the period.

Net increase (decrease) in net assets per Share (a)

Net increase (decrease) in net assets per Share based on average shares outstanding during the period.

See notes to financial statements.

iShares Silver Trust

iShares ®

Statements of Changes in Net Assets (Unaudited)

For the three months ended March 31, 2020

Three Months Ended

March 31, 2020

For the three and six months ended June 30, 2020

Six Months Ended

June 30, 2020

Net Assets at December 31, 2019

15 unchanged sentences

5,505,117,093

Net investment loss

Net realized loss

Net change in unrealized appreciation/depreciation

1,686,694,147

Net increase in net assets resulting from operations

1,666,597,884

Capital Share Transactions:

Contributions for Shares issued

1,962,530,775

Distributions for Shares redeemed

( 250,788,865

Net increase in net assets from capital share transactions

1,711,741,910

Increase in net assets

3,378,339,794

Net Assets at June 30, 2020

8,883,456,887

Shares issued and redeemed

3 unchanged sentences

See notes to financial statements.

iShares Silver Trust

iShares ®

Statements of Changes in Net Assets (Unaudited)

For the three months ended March 31, 2019

Three Months Ended

March 31, 2019

For the three and six months ended June 30, 2019

Six Months Ended

June 30, 2019

Net Assets at December 31, 2018

15 unchanged sentences

4,668,431,637

Net investment loss

Net realized loss

Net change in unrealized appreciation/depreciation

Net increase in net assets resulting from operations

Capital Share Transactions:

Contributions for Shares issued

Distributions for Shares redeemed

Net increase in net assets from capital share transactions

Increase in net assets

Net Assets at June 30, 2019

4,919,140,506

Shares issued and redeemed

1 unchanged sentence

Shares redeemed

Net decrease in Shares issued and outstanding

Net increase in Shares issued and outstanding

See notes to financial statements.

iShares Silver Trust

iShares ®

Statements of Cash Flows (Unaudited)

For the three months ended March 31, 2020 and 2019

Three Months Ended

For the six months ended June 30, 2020 and 2019

Six Months Ended

Cash Flows from Operating Activities

7 unchanged sentences

Reconciliation of Net Increase (Decrease) in Net Assets Resulting from Operations to Net Cash Provided by (Used in) Operating Activities

Net decrease in net assets resulting from operations

( 1,440,459,322

( 118,203,615

Net increase (decrease) in net assets resulting from operations

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

8 unchanged sentences

Silver bullion contributed for Shares issued

2,852,348,213

Silver bullion distributed for Shares redeemed

2 unchanged sentences

See notes to financial statements.

iShares Silver Trust

iShares ®

Schedules of Investments (Unaudited)

At March 31, 2020 and December 31, 2019

March 31, 2020

At June 30, 2020 and December 31, 2019

Silver bullion

6,681,432,888

5,507,482,733

Total Investment – 

5,507,482,733

Less Liabilities – 

Net Assets – 

498,007,498  

$ 8,374,199,813  

$ 8,886,943,805  

Total Investments –

8,886,943,805  

Less Liabilities –

( 3,486,918 )

December 31, 2019

Net Assets –

$ 8,883,456,887  

December  

Silver bullion

6,294,157,046

6,543,418,555

Total Investment – 

6,543,418,555

Less Liabilities – 

Net Assets – 

362,616,711  

$ 6,294,157,046  

$ 6,543,418,555  

Total Investments –

6,543,418,555  

Less Liabilities –

( 2,659,990 )

Net Assets –

$ 6,540,758,565  

See notes to financial statements.

iShares Silver Trust

iShares ®

Notes to Financial Statements (Unaudited)

March 31, 2020

1 - Organization

June 30, 2020

1  - Organization

The iShares Silver Trust (the “Trust”) was organized on April 21, 2006 as a New York trust.

13 unchanged sentences

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

2  - Significant Accounting Policies

Basis of Accounting

10 unchanged sentences

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, 2020 and 2019:

Three Months Ended March 31, 2020

The following tables summarize activity in silver bullion for the three months ended June 30, 2020 and 2019:

Three Months Ended June 30, 2020

Beginning balance

395,368,466  

$ 6,681,432,888  

$ 5,507,482,733  

Silver bullion contributed

118,708,634  

1,962,530,775  

Silver bullion distributed

( 15,569,065 )  

( 261,348,495 )  

( 250,788,865 )  

( 10,559,630 )

Silver bullion sold to pay expenses

( 500,537 )  

( 8,415,355 )  

( 7,832,116 )  

Net realized gain

( 11,142,869 )  

Net change in unrealized appreciation/depreciation

1,686,694,147  

Ending balance

498,007,498  

$ 8,374,199,813  

$ 8,886,943,805  

$ ( 11,142,869 )

Three Months Ended June 30, 2019

Beginning balance

309,301,232  

$ 5,475,186,353  

$ 4,670,448,601  

Silver bullion contributed

20,139,972  

300,557,309  

Silver bullion distributed

( 494,644,937

( 5,715,084 )  

( 100,797,226 )  

( 84,431,118 )  

( 16,366,108 )

Silver bullion sold to pay expenses

Net realized loss

Net change in unrealized appreciation/depreciation

( 395,507 )  

( 6,983,443 )  

( 5,887,355 )  

( 1,096,088 )

Net realized gain

( 17,462,196 )  

Net change in unrealized appreciation/depreciation

57,866,685  

Ending balance

6,681,432,888

323,330,613  

$ 5,667,962,993  

$ 4,921,091,926  

$ ( 17,462,196 )

Three Months Ended March 31, 2019

The following tables summarize activity in silver bullion for the six months ended June 30, 2020 and 2019:

Six Months Ended June 30, 2020

Beginning balance

362,616,711  

$ 6,294,157,046  

$ 6,543,418,555  

Silver bullion contributed

180,427,906  

2,852,348,213  

Silver bullion distributed

( 44,081,945 )  

( 755,993,432 )  

( 735,788,453 )  

( 20,204,979 )

Silver bullion sold to pay expenses

( 955,174 )  

( 16,312,014 )  

( 15,803,415 )  

Net realized gain

( 20,713,578 )  

Net change in unrealized appreciation/depreciation

263,482,483  

Ending balance

498,007,498  

$ 8,374,199,813  

$ 8,886,943,805  

$ ( 20,713,578 )

Six Months Ended June 30, 2019

Beginning balance

317,233,610  

$ 5,641,558,156  

$ 4,906,017,787  

Silver bullion contributed

32,006,044  

485,837,021  

Silver bullion distributed

( 344,949,618

( 25,136,052 )  

( 445,746,844 )  

( 387,112,201 )  

( 58,634,643 )

Silver bullion sold to pay expenses

Net realized loss

( 772,989 )  

( 13,685,340 )  

( 11,803,469 )  

( 1,881,871 )

Net realized gain

( 60,516,514 )  

Net change in unrealized appreciation/depreciation

( 11,330,698 )  

Ending balance

5,475,186,353

323,330,613  

$ 5,667,962,993  

$ 4,921,091,926  

$ ( 60,516,514 )

15 unchanged sentences

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, 2020 and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

3 - Trust Expenses

The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust as of June 30, 2020 and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

3  - Trust Expenses

The Trust pays to the Sponsor a Sponsor’s fee that accrues daily at an annualized rate equal to 0.50 % of the net asset value of the Trust, paid monthly in arrears.

1 unchanged sentence

the Trustee’s fee, the Custodian’s fee, NYSE Arca listing fees, SEC registration fees, printing and mailing costs, audit fees and expenses, and up to $ 100,000 per annum in legal fees and expenses.

4 - Related Parties

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

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.

1 unchanged sentence

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.

6 - Commitments and Contingent Liabilities

6  - Commitments and Contingent Liabilities

In the normal course of business, the Trust may enter into contracts with service providers that contain general indemnification clauses.

The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred.

7 - Concentration Risk

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.

5 unchanged sentences

global or regional political, economic or financial events and situations;

investors’ expectations with respect to the rate of inflation;

investors’

expectations with respect to the rate of inflation;

interest rates;

2 unchanged sentences

and investor confidence.

8 - Financial Highlights

The following financial highlights relate to investment performance and operations for a Share outstanding for the three months ended March 31, 2020 and 2019.

8  - Financial Highlights

The following financial highlights relate to investment performance and operations for a Share outstanding for the three and six months ended June 30, 2020 and 2019.

Three Months Ended

Six Months Ended

Net asset value per Share, beginning of period

Net investment loss (a)

Net realized and unrealized loss (b)

Net decrease in net assets from operations

Net realized and unrealized gain (loss) (b)

Net increase (decrease) in net assets from operations

Net asset value per Share, end of period

2 unchanged sentences

Net investment loss (e)

Based on average Shares outstanding during the period.

Based on average Shares outstanding during the period.

The amounts reported for a Share outstanding may not accord with the change in aggregate gains and losses on investment for the period due to the timing of Trust Share transactions in relation to the fluctuating fair values of the Trust’s underlying investment.

Based on the change in net asset value of a Share during the period.

Percentage is not annualized.

Percentage is annualized.

9 - Investment Valuation

Based on the change in net asset value of a Share during the period.

Percentage is 

not  annualized.

Percentage is annualized.

- Investment  

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.

5 unchanged sentences

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;

Level 3 – 

Level 1 − 

Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 − 

Level 3 − 

Unobservable inputs that are unobservable for the asset or liability, including the Trust’s assumptions used in determining the fair value of investments.

At March 31, 2020 and December 31, 2019, the value of the silver bullion held by the Trust is categorized as Level 1.

At June 30, 2020 and December 31, 2019, the value of the silver bullion held by the Trust is categorized as Level 1.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

1 unchanged sentence

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,”

In some cases, such forward-looking statements can be identified by terminology such as “may,”

“should,”

13 unchanged sentences

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.

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.

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.

The iShares Silver Trust (the “Trust”) is a grantor trust formed under the laws of the State of New York.

9 unchanged sentences

under the ticker symbol SLV.

Valuation of Silver Bullion;

Valuation of Silver Bullion;

Computation of Net Asset Value

18 unchanged sentences

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”

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.

Results of Operations

The Quarter Ended March 31, 2020

The Trust’s net asset value fell from $6,540,758,565 at December 31, 2019 to $5,505,117,093 at March 31, 2020, a 15.83% decrease.

The decrease in the Trust’s net asset value resulted primarily from a decrease in the LBMA Silver Price, which fell 22.83% from $18.05 at December 31, 2019 to $13.93 at March 31, 2020.

The decrease in the Trust’s net asset value was partially offset by an increase in outstanding Shares, which rose from 388,100,000 Shares at December 31, 2019 to 423,700,000 Shares at March 31, 2020, a consequence of 66,150,000 Shares (1,323 Baskets) being created and 30,550,000 Shares (611 Baskets) being redeemed during the quarter.

The 22.91% decline in the Trust’s NAV from $16.85 at December 31, 2019 to $12.99 at March 31, 2020 is directly related to the 22.83% decrease in the price of silver.

The Trust’s NAV decreased slightly more than the price of silver on a percentage basis due to the Sponsor’s fees, which were $7,676,949 for the quarter, or 0.12% of the Trust’s average weighted assets of $6,164,088,647 during the quarter.

The NAV of $17.52 on February 24, 2020 was the highest during the quarter, compared with a low during the quarter of $11.20 on March 19, 2020.

Net decrease in net assets resulting from operations for the quarter ended March 31, 2020 was $1,440,459,322, resulting from an unrealized loss on investment in silver bullion of $1,423,211,664, a net realized loss of $9,645,349 on silver bullion distributed for the redemption of Shares and a net investment loss of $7,676,949, partially offset by a net realized gain of $74,640 from silver bullion sold to pay expenses.

The Quarter Ended June 30, 2020

The Trust’s net asset value grew from $5,505,117,093 at March 31, 2020 to $8,883,456,887 at June 30, 2020, a 61.37% increase.

The increase in the Trust’s net asset value resulted primarily from an increase in the LBMA Silver Price, which rose 28.14% from $13.93 at March 31, 2020 to $17.85 at June 30, 2020.

The Trust’s net asset value also benefited from an increase in number of outstanding Shares, which rose from 423,700,000 Shares at March 31, 2020 to 534,350,000 Shares at June 30, 2020, a consequence of 127,350,000 Shares (2,547 Baskets) being created and 16,700,000 Shares (334 Baskets) being redeemed during the quarter.

The 27.94% increase in the Trust’s NAV from $12.99 at March 31, 2020 to $16.62 at June 30, 2020 is directly related to the 28.14% increase in the price of silver.

The Trust’s NAV increased slightly less than the price of silver on a percentage basis due to the Sponsor’s fees, which were $8,953,394 for the quarter, or 0.12% of the Trust’s average weighted assets of $7,239,298,886 during the quarter.

The NAV of $17.03 on June 2, 2020 was the highest during the quarter, compared with a low during the quarter of $13.07 on April 1, 2020.

Net increase in net assets resulting from operations for the quarter ended June 30, 2020 was $1,666,597,884, resulting primarily from an unrealized gain on investment in silver bullion of $1,686,694,147, offset by a net realized loss of $10,559,630 on silver bullion distributed for the redemption of Shares, a net investment loss of $8,953,394, and a net realized loss of $583,239 from silver bullion sold to pay expenses.

Other than the Sponsor’s fees of $8,953,394, the Trust had no expenses during the quarter.

The Six- Month Period 

Ended June 30, 2020

The Trust’s net asset value grew from $6,540,758,565 at December 31, 2019 to $8,883,456,887 at June 30, 2020, a 35.82% increase.

The increase in the Trust’s net asset value resulted primarily from an increase in the number of outstanding Shares, which rose from 388,100,000 Shares at December 31, 2019 to 534,350,000 Shares at June 30, 2020, a consequence of 193,500,000 Shares (3,870 Baskets) being created and 47,250,000 Shares (945 Baskets) being redeemed during the period.

The increase in the Trust’s net asset value was partially offset by from a decrease in the LBMA Silver Price, which fell 1.11% from $18.05 at December 31, 2019 to $17.85 at June 30, 2020.

The 1.36% decline in the Trust’s NAV from $16.85 at December 31, 2019 to $16.62 at June 30, 2020 is directly related to the 1.11% decrease in the price of silver.

The Trust’s NAV decreased slightly more than the price of silver on a percentage basis due to the Sponsor’s fees, which were $16,630,343 for the period, or 0.25% of the Trust’s average weighted assets of $6,701,693,767 during the period.

The NAV of $17.52 on February 24, 2020 was the highest during the period, compared with a low during the period of $11.20 on March 19, 2020.

Net increase in net assets resulting from operations for the six months ended June 30, 2020 was $226,138,562, resulting primarily from an unrealized gain on investment in silver bullion of $263,482,483, offset by a net realized loss of $20,204,979 on silver bullion distributed for the redemption of Shares, a net investment loss of $16,630,343 and a net realized loss of $508,599 from silver bullion sold to pay expenses.

Other than the Sponsor’s fees of $16,630,343, the Trust had no expenses during the period.

Quantitative and Qualitative Disclosures About Market Risk.

1 unchanged sentence

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-Q

Item 1. Financial Statements