What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-05-04 compared with 2020-11-05 · 89 added, 253 removed, 313 unchanged (52% of the section changed)

2 unchanged sentences

Statements of Assets and Liabilities (Unaudited)

At September 30, 2020 and December 31, 2019

September 30,

At March 31, 2021 and December 31, 2020

Investment in silver bullion, at fair value (a)

18 unchanged sentences

$ 24.61  

Cost of investment in silver bullion: $9,925,280,862 and $6,294,157,046, respectively.

No par value, unlimited amount authorized.

Cost of investment in silver bullion:

$11,937,644,776 and $10,472,474,303, respectively.

No par value, unlimited amount authorized.

See notes to financial statements.

1 unchanged sentence

Statements of Operations (Unaudited)

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

For the three months ended March 31, 2021 and 2020

Three 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

4,011,930  

( 311,270 )  

3,503,331  

( 2,193,141 )

Silver bullion distributed for the redemption of Shares

646,100,731  

9,844,202  

625,895,752  

( 48,790,441 )

Net realized gain (loss)

650,112,661  

9,532,932  

629,399,083  

( 50,983,582 )

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.

iShares ®

Statements of Changes in Net Assets (Unaudited)

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

Nine Months Ended

September 30, 2020

Net Assets at December 31, 2019

( 2,459,779,533

Net investment loss

Net realized loss

Net change in unrealized appreciation/depreciation

( 1,423,211,664

Net decrease in net assets resulting from operations

( 1,440,459,322

Capital Share Transactions:

Contributions for Shares issued

Distributions for Shares redeemed

( 484,999,588

Net increase in net assets from capital share transactions

Decrease in net assets

( 1,035,641,472

Net Assets at March 31, 2020

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

Net realized and unrealized loss

( 1,566,020,961

Distributions for Shares redeemed

( 1,432,782,373

Net increase in net assets from capital share transactions

Net decrease in net assets resulting from operations

( 1,585,307,592

Increase in net assets

( 1,440,459,322

Net Assets at June 30, 2020

Net decrease in net assets per Share (a)

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

See notes to financial statements.

iShares ®

Statements of Changes in Net Assets (Unaudited)

For the three months ended March 31, 2021

Three Months Ended

March 31, 2021

Net Assets at December 31, 2020

14,791,792,720

3 unchanged sentences

( 2,459,779,533

Net increase in net assets resulting from operations

Net decrease in net assets resulting from operations

( 1,585,307,592

5 unchanged sentences

Net increase in net assets from capital share transactions

Increase in net assets

Decrease in net assets

( 995,260,264

Net Assets at September 30, 2020

Net Assets at March 31, 2021

13,796,532,456

7 unchanged sentences

Statements of Changes in Net Assets (Unaudited)

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

Nine Months Ended

September 30, 2019

For the three months ended March 31, 2020

Three Months Ended

March 31, 2020

Net Assets at December 31, 2019

3 unchanged sentences

Net change in unrealized appreciation/depreciation

( 1,423,211,664

Net decrease in net assets resulting from operations

4 unchanged sentences

( 484,999,588

Net decrease in net assets from capital share transactions

( 117,401,371

Net increase in net assets from capital share transactions

Decrease in net assets

2 unchanged sentences

5,505,117,093

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

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 nine months ended September 30, 2020 and 2019

Nine Months Ended

September 30,

For the three months ended March 31, 2021 and 2020

Three 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 increase in net assets resulting from operations

Net decrease in net assets resulting from operations

( 1,585,307,592

( 1,440,459,322

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

11 unchanged sentences

4,468,670,836

1,759,987,439

Silver bullion distributed for Shares redeemed

4 unchanged sentences

Schedules of Investments (Unaudited)

At September 30, 2020 and December 31, 2019

September 30, 2020

At March 31, 2021 and December 31, 2020

March 31, 2021

Silver bullion

2 unchanged sentences

$ 13,802,981,086  

Total Investments —

Total Investments – 

13,802,981,086  

Less Liabilities —

Less Liabilities – 

( 6,448,630 )

Net Assets —

Net Assets – 

$ 13,796,532,456  

4 unchanged sentences

$ 14,797,590,146  

Total Investments —

Total Investments – 

14,797,590,146  

Less Liabilities —

Less Liabilities – 

( 5,797,426 )

Net Assets —

Net Assets – 

$ 14,791,792,720  

2 unchanged sentences

Notes to Financial Statements (Unaudited)

September 30, 2020

- Organization

March 31, 2021

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

11 unchanged sentences

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, 2019, as filed with the SEC on February 27, 2020.

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.

- Significant  

Accounting  

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 September 30, 2020 and 2019:

Three Months Ended September 30, 2020

Beginning balance

498,007,498  

$ 8,374,199,813  

$ 8,886,943,805  

Silver bullion contributed

130,002,203  

2,950,693,999  

Silver bullion distributed

( 78,292,675 )  

( 1,389,180,769 )  

( 2,035,281,500 )  

646,100,731  

Silver bullion sold to pay expenses

( 600,508 )  

( 10,432,181 )  

( 14,444,111 )  

4,011,930  

Net realized gain

650,112,661  

Net change in unrealized appreciation/depreciation

2,589,764,531  

Ending balance

549,116,518  

$ 9,925,280,862  

$ 13,027,789,385  

$ 650,112,661  

Three Months Ended September 30, 2019

Beginning balance

323,330,613  

$ 5,667,962,993  

$ 4,921,091,926  

Silver bullion contributed

76,785,902  

1,274,150,418  

Silver bullion distributed

( 16,043,945 )  

( 278,104,316 )  

( 287,948,518 )  

9,844,202  

Silver bullion sold to pay expenses

( 416,200 )  

( 7,238,618 )  

( 6,927,348 )  

Net realized gain

9,532,932  

Net change in unrealized appreciation/depreciation

710,091,263  

Ending balance

383,656,370  

$ 6,656,770,477  

$ 6,619,990,673  

$ 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

The following tables summarize activity in silver bullion for the three months ended March 31, 2021 and 2020:

Three Months Ended March 31, 2021

Beginning balance

25 unchanged sentences

$ 893,758,572  

Nine Months Ended September 30, 2019

Three Months Ended March 31, 2020

Beginning balance

15 unchanged sentences

( 7,971,299 )  

( 2,193,141 )

Net realized gain

74,640  

Net realized loss

( 9,570,709 )  

Net change in unrealized appreciation/depreciation

12 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 September 30, 2020 and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

- Trust  

The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust as of March 31, 2021 and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

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.

- Related  

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.

- 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.

- Commitments  

Contingent  

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.

- Concentration  

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.

11 unchanged sentences

and investor confidence.

- 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.

Financial Highlights

The following financial highlights relate to investment performance and operations for a Share outstanding for the three months ended March 31, 2021 and 2020.

Three 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 (b)

Net increase in net assets from operations

Net realized and unrealized loss (b)

Net 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.

Investment  

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

Percentage is not annualized.

Percentage is annualized.

Investment Valuation

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.

9 unchanged sentences

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 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.

At March 31, 2021 and December 31, 2020, 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.

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”

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.

2 unchanged sentences

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.

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.

s expectations or predictions.

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

30 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” above.

Computation of Net Asset Value”

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 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 $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.

The Quarter Ended March 31, 2021

The Trust’s net asset value fell from $14,791,792,720 at December 31, 2020 to $13,796,532,456 at March 31, 2021, a 6.73% decrease.

The decrease in the Trust’s net asset value resulted primarily from a decrease in the LBMA Silver Price, which fell 9.40% from $26.49 at December 31, 2020 to $24.00 at March 31, 2021.

The decrease in the Trust’s net asset value was partially offset by an increase in the number of outstanding Shares, which rose from 600,950,000 Shares at December 31, 2020 to 619,300,000 Shares at March 31, 2021, a consequence of 176,700,000 Shares (3,534 Baskets) being created and 158,350,000 Shares (3,167 Baskets) being redeemed during the quarter.

The 9.47% decrease in the Trust’s NAV from $24.61 at December 31, 2020 to $22.28 at March 31, 2021 is directly related to the 9.40% 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 $19,286,631 for the quarter, or 0.12% of the Trust’s average weighted assets of $15,631,562,346 during the quarter.

The NAV of $27.48 on February 1, 2021 was the highest during the quarter, compared with a low during the quarter of $22.28 on March 31, 2021.

Net decrease in net assets resulting from operations for the quarter ended March 31, 2021 was $1,585,307,592, resulting from an unrealized loss on investment in silver bullion of $2,459,779,533, a net realized gain of $888,549,245 on silver distributed for the redemption of Shares, a net realized gain of $5,209,327 from silver bullion sold to pay expenses, and a net investment loss of $19,286,631.

Other than the Sponsor’s fees of $19,286,631, the Trust had no expenses during the quarter.

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.

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