What changed in this filing

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Item 1. Financial Statements

2022-05-06 compared with 2021-11-03 · 116 added, 219 removed, 331 unchanged (50% of the section changed)

2 unchanged sentences

Statements of Assets and Liabilities (Unaudited)

At September 30, 2021 and December 31, 2020

September 30,

At March 31, 2022 and December 31, 2021

Investment in silver bullion, at fair value (a)

24 unchanged sentences

Statements of Operations (Unaudited)

For the three and nine months ended September 30, 2021 and 2020

For the three months ended March 31, 2022 and 2021

Three Months Ended

September 30,

Nine Months Ended

September 30,

Sponsor’s fees

$ 15,968,507  

$ 19,286,631  

Total expenses

15,968,507  

19,286,631  

Net investment loss

( 15,968,507 )  

( 19,286,631 )

Net Realized and Unrealized Gain (Loss)

Net realized gain (loss) from:

Net realized gain from:

Silver bullion sold to pay expenses

1,304,282  

5,209,327  

Silver bullion distributed for the redemption of Shares

1,267,020,131

69,885,981  

888,549,245  

Net realized gain

1,279,122,873

71,190,263  

893,758,572  

Net change in unrealized appreciation/depreciation

( 2,458,121,261

2,589,764,531

( 4,161,305,977

874,378,036  

( 2,459,779,533 )

Net realized and unrealized gain (loss)

( 2,325,757,387

3,239,877,192

( 2,882,183,104

945,568,299  

( 1,566,020,961 )

Net increase (decrease) in net assets resulting from operations

( 2,342,723,352

3,222,974,616

( 2,937,376,219

$ 929,599,792  

$ ( 1,585,307,592 )

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

$ 1.59  

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

2 unchanged sentences

Statements of Changes in Net Assets (Unaudited)

For the three, six and nine months ended September 30, 2021

Nine Months Ended

September 30, 2021

For the three months ended March 31, 2022

Three Months Ended

March 31, 2022

Net Assets at December 31, 2021

14,791,792,720

$ 12,249,234,223  

Net investment loss

Net realized gain

Net change in unrealized appreciation/depreciation

( 15,968,507 )

Net decrease in net assets resulting from operations

( 1,585,307,592

Capital Share Transactions:

Contributions for Shares issued

4,468,670,836

Distributions for Shares redeemed

( 3,878,623,508

Net increase in net assets from capital share transactions

Decrease in net assets

( 995,260,264

Net Assets at March 31, 2021

13,796,532,456

Net investment loss

Net realized gain

71,190,263  

Net change in unrealized appreciation/depreciation

874,378,036  

Net increase in net assets resulting from operations

929,599,792  

Capital Share Transactions:

Contributions for Shares issued

1,235,098,722  

Distributions for Shares redeemed

( 556,974,232 )

Net decrease in net assets from capital share transactions

( 412,205,443

Net increase in net assets from capital share transactions

678,124,490  

Increase in net assets

Net Assets at June 30, 2021

14,374,981,738

Net investment loss

Net realized gain

Net change in unrealized appreciation/depreciation

( 2,458,121,261

Net decrease in net assets resulting from operations

( 2,342,723,352

Capital Share Transactions:

Contributions for Shares issued

Distributions for Shares redeemed

( 1,023,070,679

Net decrease in net assets from capital share transactions

( 210,841,808

Decrease in net assets

( 2,553,565,160

Net Assets at September 30, 2021

11,821,416,578

1,607,724,282  

Net Assets at March 31, 2022

$ 13,856,958,505  

Shares issued and redeemed

Shares issued

55,400,000  

Shares redeemed

( 24,600,000 )

Net decrease in Shares issued and outstanding

Net increase in Shares issued and outstanding

30,800,000  

See notes to financial statements.

1 unchanged sentence

Statements of Changes in Net Assets (Unaudited)

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

Nine Months Ended

September 30, 2020

For the three months ended March 31, 2021

Three Months Ended

March 31, 2021

Net Assets at December 31, 2020

6,540,758,565

$ 14,791,792,720  

Net investment loss

Net realized loss

( 19,286,631 )

Net realized gain

893,758,572  

Net change in unrealized appreciation/depreciation

4 unchanged sentences

Contributions for Shares issued

4,468,670,836  

Distributions for Shares redeemed

1 unchanged sentence

Net increase in net assets from capital share transactions

590,047,328  

Decrease in net assets

1 unchanged sentence

Net Assets at March 31, 2021

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

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

$ 13,796,532,456  

Shares issued and redeemed

Shares issued

176,700,000  

Shares redeemed

1 unchanged sentence

Net increase in Shares issued and outstanding

18,350,000  

See notes to financial statements.

1 unchanged sentence

Statements of Cash Flows (Unaudited)

For the nine months ended September 30, 2021 and 2020

Nine Months Ended

September 30,

For the three months ended March 31, 2022 and 2021

Three Months Ended

Cash Flows from Operating Activities

Proceeds from silver bullion sold to pay expenses

$ 15,252,515  

$ 18,635,427  

Expenses –

Sponsor’s fees paid

( 15,252,515 )  

( 18,635,427 )

Net cash provided by operating activities

4 unchanged sentences

Net increase (decrease) in net assets resulting from operations

( 2,937,376,219

$ 929,599,792  

$ ( 1,585,307,592 )

1 unchanged sentence

Proceeds from silver bullion sold to pay expenses

15,252,515  

18,635,427  

Net realized (gain) loss

( 1,279,122,873

( 71,190,263 )  

( 893,758,572 )

Net change in unrealized appreciation/depreciation

4,161,305,977

( 2,853,247,014

( 874,378,036 )  

2,459,779,533  

Change in operating assets and liabilities:

Sponsor’s fees payable

715,992  

651,204  

Net cash provided by (used in) operating activities

1 unchanged sentence

Silver bullion contributed for Shares issued

6,046,693,874

5,803,042,212

$ 1,235,098,722  

$ 4,468,670,836  

Silver bullion distributed for Shares redeemed

( 6,079,693,797

$ ( 556,974,232 )  

$ ( 3,878,623,508 )

2 unchanged sentences

Schedules of Investments (Unaudited)

At September 30, 2021 and December 31, 2020

September 30, 2021

At March 31, 2022 and December 31, 2021

March 31, 2022

Silver bullion

2 unchanged sentences

$ 13,862,837,819  

Total Investments –

Total Investments –

13,862,837,819  

17 unchanged sentences

Notes to Financial Statements (Unaudited)

September 30, 2021

March 31, 2022

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

1 unchanged sentence

The Trust’s sponsor is iShares Delaware Trust Sponsor LLC, a Delaware limited liability company (the “Sponsor”).

The Trust is governed by the provisions of the Second Amended and Restated Depositary Trust Agreement (the “Trust Agreement”) executed by the Trustee and the Sponsor as of December 22, 2016.

The Trust issues units of beneficial interest (“Shares”) representing fractional undivided beneficial interests in its net assets.

The Trust is governed by the provisions of the Third Amended and Restated Depositary Trust Agreement (the “Trust Agreement”) executed by the Trustee and the Sponsor as of January 31, 2022.

The Trust issues units of beneficial interest (“Shares”) representing fractional undivided beneficial interests in its net assets.

The Trust seeks to reflect generally the performance of the price of silver.

21 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, 2021 and 2020:

Three Months Ended September 30, 2021

Beginning balance

558,173,283  

$ 11,759,403,511  

$ 14,381,334,638  

Silver bullion contributed

34,183,346  

812,228,871  

Silver bullion distributed

( 42,201,111 )  

( 893,615,786 )  

( 1,023,070,679 )  

129,454,893  

Silver bullion sold to pay expenses

( 716,646 )  

( 15,154,743 )  

( 18,063,724 )  

2,908,981  

Net realized gain

132,363,874  

Net change in unrealized appreciation/depreciation

( 2,458,121,261 )  

Ending balance

549,438,872  

$ 11,662,861,853  

$ 11,826,671,719  

$ 132,363,874  

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  

The following tables summarize activity in silver bullion for the nine months ended September 30, 2021 and 2020:

Nine Months Ended September 30, 2021

The following tables summarize activity in silver bullion for the three months ended March 31, 2022 and 2021:

Three Months Ended March 31, 2022

Beginning balance

25 unchanged sentences

$ 71,190,263  

Nine Months Ended September 30, 2020

Three Months Ended March 31, 2021

Beginning balance

41 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, 2021 and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust as of March 31, 2022 and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Trust Expenses

1 unchanged sentence

The Sponsor has agreed to assume the following administrative and marketing expenses incurred by the Trust:

the Trustee’s fee and reimbursement for its reasonable out-of-pocket expenses, 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.

the Trustee’s fee and reimbursement for its reasonable out-of-pocket expenses, the Custodian’s fee, NYSE Arca listing fees, SEC registration fees, printing and mailing costs, audit fees and expenses, and, effective January 31, 2022, up to $ 500,000  per annum in legal fees and expenses.

Prior to January 31, 2022, the Sponsor had agreed to assume up to $ 100,000 per annum in legal fees and expenses.

The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Trust in excess of the amount required under the Trust Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Trust. 

Related Parties

2 unchanged sentences

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.

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.

The Trust Agreement provides that the Sponsor and its shareholders, directors, officers, employees, affiliates (as such term is defined under the Securities Act of 1933, as amended) and subsidiaries shall be indemnified from the Trust and held harmless against any loss, liability or expense incurred without their ( 1 ) negligence, bad faith, willful misconduct or willful malfeasance arising out of or in connection with the performance of their obligations under the Trust Agreement or any actions taken in accordance with the provisions of the Trust Agreement or ( 2 ) reckless disregard of their obligations and duties under the Trust Agreement.

18 unchanged sentences

Financial Highlights

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

2021 and 2020.

The following financial highlights relate to investment performance and operations for a Share outstanding for the three months ended March 31, 2022 and 2021.

Three Months Ended

September 30,

Nine Months Ended

September 30,

Net asset value per Share, beginning of period

$ 21.35  

$ 24.61  

Net investment loss (a)

( 0.03 )  

Net realized and unrealized gain (loss) (b)

1 unchanged sentence

Net asset value per Share, end of period

$ 22.92  

$ 22.28  

Total return, at net asset value (c)(d)

7.35 % 

( 9.47 )% 

Ratio to average net assets:

Net investment loss (e)

( 0.50 )% 

0.50 % 

Based on average Shares outstanding during the period.

11 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 September 30, 2021 and December 31, 2020, the value of the silver bullion held by the Trust is categorized as Level 1.

At March 31, 2022 and December 31, 2021, the value of the silver bullion held by the Trust is categorized as Level 1.

Management ’

2 unchanged sentences

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.

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.

13 unchanged sentences

(New York time), the Trustee evaluates the silver held by the Trust and determines the net asset value of the Trust and net asset value per Share (“NAV”).

The Trustee values the silver held by the Trust using the price per ounce of silver determined in an electronic auction hosted by ICE Benchmark Administration (“IBA”) that begins at 12:00 p.m.

The Trustee values the silver held by the Trust using the price per ounce of silver determined in an electronic auction hosted by IBA that begins at 12:00 p.m.

(London time) and published shortly thereafter, on the day the valuation takes place (such price, the “LBMA Silver Price”).

3 unchanged sentences

The use of an indicator of the value of silver bullion other than the LBMA Silver Price could result in materially different fair value pricing of the silver held by the Trust, and as such, could result in different cost or market adjustments or in different redemption value adjustments of the outstanding redeemable capital Shares.

Having valued the silver held by the Trust, the Trustee then subtracts all accrued fees, expenses and other liabilities of the Trust from the total value of the silver and other assets held by the Trust.

Having valued the silver held by the Trust, the Trustee then subtracts all accrued fees, expenses and other liabilities of the Trust from the total value of the silver held by the Trust and other assets held by the Trust.

The result is the net asset value of the Trust.

12 unchanged sentences

Results of Operations

The Quarter Ended September 30, 2021

The Trust’s net asset value decreased from $14,374,981,738 at June 30, 2021 to $11,821,416,578 at September 30, 2021, a 17.76% decrease.

The decrease in the Trust’s net asset value resulted primarily from a decrease in the LBMA Silver Price, which decreased 16.45% from $25.77 at June 30, 2021 to $21.53 at September 30, 2021.

The decrease in the Trust’s net asset value was also affected by a decrease in the number of outstanding Shares, which fell from 601,800,000 Shares at June 30, 2021 to 593,150,000 Shares at September 30, 2021, a consequence of 36,900,000 Shares (738 Baskets) being created and 45,550,000 Shares (911 Baskets) being redeemed during the quarter.

The 16.58% decrease in the NAV from $23.89 at June 30, 2021 to $19.93 at September 30, 2021 is directly related to the 16.45% decrease in the price of silver.

The NAV decreased slightly more than the price of silver on a percentage basis due to the Sponsor’s fees, which were $16,965,965 for the quarter, or 0.13% of the Trust’s average weighted assets of $13,434,356,872 during the quarter.

The NAV of $24.67 on July 6, 2021 was the highest during the quarter, compared with a low during the quarter of $19.93 on September 30, 2021.

Net decrease in net assets resulting from operations for the quarter ended September 30, 2021 was $2,342,723,352, resulting from an unrealized loss on investment in silver bullion of $2,458,121,261, a net realized gain of $129,454,893 on silver distributed for the redemption of Shares, a net realized gain of $2,908,981 from silver bullion sold to pay expenses and a net investment loss of $16,965,965.

The Quarter Ended March 31, 2022

The Trust’s net asset value increased from $12,249,234,223 at December 31, 2021 to $13,856,958,505 at March 31, 2022, a 13.13% increase.

The increase in the Trust’s net asset value resulted primarily from an increase in the LBMA Silver Price, which grew 7.49% from $23.09 at December 31, 2021 to $24.82 at March 31, 2022.

The increase in the Trust’s net asset value also benefited from an increase in the number of outstanding Shares, which rose from 573,800,000 Shares at December 31, 2021 to 604,600,000 Shares at March 31, 2022, a consequence of 55,400,000 Shares (1,108 Baskets) being created and 24,600,000 Shares (492 Baskets) being redeemed during the quarter.

The 7.35% increase in the NAV from $21.35 at December 31, 2021 to $22.92 at March 31, 2022 is directly related to the 7.49% increase in the price of silver.

The NAV increased slightly less than the price of silver on a percentage basis due to the Sponsor’s fees, which were $15,968,507 for the quarter, or 0.12% of the Trust’s average weighted assets of $12,970,209,527 during the quarter.

The NAV of $24.18 on March 9, 2022 was the highest during the quarter, compared with a low during the quarter of $20.56 on January 7, 2022.

Net increase in net assets resulting from operations for the quarter ended March 31, 2022 was $929,599,792, resulting from an unrealized gain on investment in silver bullion of $874,378,036, a net realized gain of $69,885,981 on silver distributed for the redemption of Shares, and a net realized gain of $1,304,282 from silver bullion sold to pay expenses, partially offset by net investment loss of $15,968,507.

Other than the Sponsor’s fees of $15,968,507, the Trust had no expenses during the quarter.

The Nine-Month Period Ended September 30, 2021

The Trust’s net asset value fell from $14,791,792,720 at December 31, 2020 to $11,821,416,578 at September 30, 2021, a 20.08% decrease.

The decrease in the Trust’s net asset value resulted primarily from a decline in the LBMA Silver Price, which fell 18.72% from $26.49 at December 31, 2020 to $21.53 at September 30, 2021.

The decrease in the Trust’s net asset value was also affected by a decrease in the number of outstanding Shares, which fell from 600,950,000 Shares at December 31, 2020 to 593,150,000 Shares at September 30, 2021, a consequence of 243,900,000 Shares (4,878 Baskets) being created and 251,700,000 Shares (5,034 Baskets) being redeemed during the period.

The 19.02% decrease in the NAV from $24.61 at December 31, 2020 to $19.93 at September 30, 2021 is directly related to the 18.72% decrease in the price of silver.

The NAV decreased slightly more than the price of silver on a percentage basis due to the Sponsor’s fees, which were $55,193,115 for the period, or 0.37% of the Trust’s average weighted assets of $14,747,391,351 during the period.

The NAV of $27.48 on February 1, 2021 was the highest during the period, compared with a low during the period of $19.93 on September 30, 2021.

Net decrease in net assets resulting from operations for the nine months ended September 30, 2021 was $2,937,376,219, resulting from an unrealized loss on investment in silver bullion of $4,161,305,977, a net realized gain of $1,267,020,131 on silver distributed for the redemption of Shares, a net realized gain of $12,102,742 from silver bullion sold to pay expenses, and a net investment loss of $55,193,115.

Other than the Sponsor’s fees of $55,193,115, 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