What changed in this filing

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Item 1. Financial Statements

2020-11-05 compared with 2020-08-05 · 153 added, 71 removed, 413 unchanged (35% of the section changed)

2 unchanged sentences

Statements of Assets and Liabilities (Unaudited)

At June 30, 2020 and December 31, 2019

At September 30, 2020 and December 31, 2019

September 30,

Investment in silver bullion, at fair value (a)

23 unchanged sentences

Statements of Operations (Unaudited)

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

For the three and nine months ended September 30, 2020 and 2019

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Sponsor’s fees

$ 16,902,576  

$ 7,818,311  

$ 33,532,919  

$ 19,592,036  

Total expenses

16,902,576  

7,818,311  

33,532,919  

19,592,036  

Net investment loss

( 16,902,576 )  

( 7,818,311 )  

( 33,532,919 )  

( 19,592,036 )

Net Realized and Unrealized Gain (Loss)

1 unchanged sentence

Silver bullion sold to pay expenses

Silver bullion distributed for the redemption of Shares

Net realized loss

Net change in unrealized appreciation/depreciation

4,011,930  

( 311,270 )  

3,503,331  

( 2,193,141 )

Net realized and unrealized gain (loss)

Silver bullion distributed for the redemption of Shares

646,100,731  

9,844,202  

625,895,752  

( 48,790,441 )

Net increase (decrease) in net assets resulting from operations

Net realized gain (loss)

650,112,661  

9,532,932  

629,399,083  

( 50,983,582 )

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.

Net change in unrealized appreciation/depreciation

2,589,764,531  

710,091,263  

2,853,247,014  

698,760,565  

Net realized and unrealized gain

3,239,877,192  

719,624,195  

3,482,646,097  

647,776,983  

Net increase in net assets resulting from operations

$ 3,222,974,616  

$ 711,805,884  

$ 3,449,113,178  

$ 628,184,947  

Net increase in net assets per Share (a)

$ 5.42  

$ 1.82  

$ 7.08  

$ 1.78  

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

See notes to financial statements.

1 unchanged sentence

Statements of Changes in Net Assets (Unaudited)

For the three and six months ended June 30, 2020

Six Months Ended

June 30, 2020

For the three, six and nine months ended September 30, 2020

Nine Months Ended

September 30, 2020

Net Assets at December 31, 2019

32 unchanged sentences

8,883,456,887

Net investment loss

Net realized gain

Net change in unrealized appreciation/depreciation

2,589,764,531

Net increase in net assets resulting from operations

3,222,974,616

Capital Share Transactions:

Contributions for Shares issued

2,950,693,999

Distributions for Shares redeemed

( 2,035,281,500

Net increase in net assets from capital share transactions

Increase in net assets

4,138,387,115

Net Assets at September 30, 2020

13,021,844,002

Shares issued and redeemed

1 unchanged sentence

Shares redeemed

( 131,350,000

Net increase in Shares issued and outstanding

2 unchanged sentences

Statements of Changes in Net Assets (Unaudited)

For the three and six months ended June 30, 2019

Six Months Ended

June 30, 2019

For the three, six and nine months ended September 30, 2019

Nine Months Ended

September 30, 2019

Net Assets at December 31, 2018

26 unchanged sentences

4,919,140,506

Net investment loss

Net realized gain

Net change in unrealized appreciation/depreciation

Net increase in net assets resulting from operations

Capital Share Transactions:

Contributions for Shares issued

1,274,150,418

Distributions for Shares redeemed

( 287,948,518

Net increase in net assets from capital share transactions

Increase in net assets

1,698,007,784

Net Assets at September 30, 2019

6,617,148,290

Shares issued and redeemed

5 unchanged sentences

Statements of Cash Flows (Unaudited)

For the six months ended June 30, 2020 and 2019

Six Months Ended

For the nine months ended September 30, 2020 and 2019

Nine Months Ended

September 30,

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 increase (decrease) in net assets resulting from operations

Net increase in net assets resulting from operations

3,449,113,178

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

1 unchanged sentence

Net realized (gain) loss

( 629,399,083

Net change in unrealized appreciation/depreciation

( 2,853,247,014

( 698,760,565

Change in operating assets and liabilities:

4 unchanged sentences

5,803,042,212

1,759,987,439

Silver bullion distributed for Shares redeemed

4 unchanged sentences

Schedules of Investments (Unaudited)

At June 30, 2020 and December 31, 2019

At September 30, 2020 and December 31, 2019

September 30, 2020

Silver bullion

8 unchanged sentences

$ 13,021,844,002  

December  

December 31, 2019

Silver bullion

11 unchanged sentences

Notes to Financial Statements (Unaudited)

June 30, 2020

1  - Organization

September 30, 2020

- 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

- Significant  

Accounting  

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 June 30, 2020 and 2019:

Three Months Ended June 30, 2020

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

Three Months Ended September 30, 2020

Beginning balance

10 unchanged sentences

( 2,035,281,500 )  

( 10,559,630 )

646,100,731  

Silver bullion sold to pay expenses

2 unchanged sentences

( 14,444,111 )  

4,011,930  

Net realized gain

6 unchanged sentences

$ 13,027,789,385  

$ ( 11,142,869 )

Three Months Ended June 30, 2019

$ 650,112,661  

Three Months Ended September 30, 2019

Beginning balance

10 unchanged sentences

( 287,948,518 )  

( 16,366,108 )

9,844,202  

Silver bullion sold to pay expenses

2 unchanged sentences

( 6,927,348 )  

( 1,096,088 )

Net realized gain

6 unchanged sentences

$ 6,619,990,673  

$ ( 17,462,196 )

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

Six Months Ended June 30, 2020

$ 9,532,932  

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

Nine Months Ended September 30, 2020

Beginning balance

10 unchanged sentences

( 2,771,069,953 )  

( 20,204,979 )

625,895,752  

Silver bullion sold to pay expenses

2 unchanged sentences

( 30,247,526 )  

3,503,331  

Net realized gain

6 unchanged sentences

$ 13,027,789,385  

$ ( 20,713,578 )

Six Months Ended June 30, 2019

$ 629,399,083  

Nine Months Ended September 30, 2019

Beginning balance

32 unchanged sentences

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”).

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;

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

- Trust  

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

- Related  

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

- 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

- Commitments  

Contingent  

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

- Concentration  

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.

11 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 and six months ended June 30, 2020 and 2019.

- Financial  

The following financial highlights relate to investment performance and operations for a Share outstanding for the three and nine months ended September 

2020 and 2019.

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Net asset value per Share, beginning of period

Net investment loss (a)

Net realized and unrealized gain (loss) (b)

Net increase (decrease) in net assets from operations

Net realized and unrealized gain (b)

Net increase in net assets from operations

Net asset value per Share, end of period

8 unchanged sentences

Percentage is annualized.

- Investment  

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 − 

Level 1 –

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

Level 2 − 

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

At September 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,”

50 unchanged sentences

Results of Operations

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 Quarter Ended September 30, 2020

The Trust’s net asset value grew from $8,883,456,887 at June 30, 2020 to $13,021,844,002 at September 30, 2020, a 46.59% increase.

The increase in the Trust’s net asset value resulted primarily from an increase in the LBMA Silver Price, which rose 32.94% from $17.85 at June 30, 2020 to $23.73 at September 30, 2020.

The Trust’s net asset value also benefited from an increase in number of outstanding Shares, which rose from 534,350,000 Shares at June 30, 2020 to 589,850,000 Shares at September 30, 2020, a consequence of 139,600,000 Shares (2,792 Baskets) being created and 84,100,000 Shares (1,682 Baskets) being redeemed during the quarter.

The 32.85% increase in the Trust’s NAV from $16.62 at June 30, 2020 to $22.08 at September 30, 2020 is directly related to the 32.94% 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 $16,902,576 for the quarter, or 0.13% of the Trust’s average weighted assets of $13,493,519,637 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.

The NAV of $26.89 on September 1, 2020 was the highest during the quarter, compared with a low during the quarter of $16.70 on July 2, 2020.

Net increase in net assets resulting from operations for the quarter ended September 30, 2020 was $3,222,974,616, resulting primarily from an unrealized gain on investment in silver bullion of $2,589,764,531, a net realized gain of $646,100,731 on silver bullion distributed for the redemption of Shares, a net realized gain of $4,011,930 from silver bullion sold to pay expenses, offset by a net investment loss of $16,902,576.

Other than the Sponsor’s fees of $16,902,576, 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.

The Nine-Month Period Ended September 30, 2020

The Trust’s net asset value grew from $6,540,758,565 at December 31, 2019 to $13,021,844,002 at September 30, 2020, a 99.09% increase.

The increase in the Trust’s net asset value resulted primarily from an increase in the LBMA Silver Price, which rose 31.47% from $18.05 at December 31, 2019 to $23.73 at September 30, 2020.

The Trust’s net asset value also benefited from an increase in number of outstanding Shares, which rose from 388,100,000 Shares at December 31, 2019 to 589,850,000 Shares at September 30, 2020, a consequence of 333,100,000 Shares (6,662 Baskets) being created and 131,350,000 Shares (2,627 Baskets) being redeemed during the period.

The 31.04% increase in the Trust’s NAV from $16.85 at December 31, 2019 to $22.08 at September 30, 2020 is directly related to the 31.47% 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 $33,532,919 for the period, or 0.37% of the Trust’s average weighted assets of $8,982,160,847 during the period.

The NAV of $26.89 on September 1, 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 nine months ended September 30, 2020 was $3,449,113,178, resulting primarily from an unrealized gain on investment in silver bullion of $2,853,247,014, a net realized gain of $625,895,752 on silver bullion distributed for the redemption of Shares, a net realized gain of $3,503,331 from silver bullion sold to pay expenses, offset by a net investment loss of $33,532,919.

Other than the Sponsor’s fees of $33,532,919, the Trust had no expenses during the period.

2 unchanged sentences

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