Price Volatility Drives Material Change
Jeweller Pandora said it will switch from using silver in some of its ranges to platinum-plating after a sharp rise in silver prices, which have more than doubled over the past year alongside gains in other precious metals such as gold.
Chief executive Berta de Pablos-Barbier said the company does not intend to make all of its jewellery platinum-plated, but aims to reduce silver to about 20% of its products to limit exposure to price swings. The Danish group, one of the world’s largest jewellery retailers, currently makes most of its products from silver and is known for its charm bracelets.
De Pablos-Barbier said around 60% of Pandora’s business is currently based on silver.
Cost Structure And Consumer Pricing
Although platinum costs more than silver per ounce, Pandora said it will plate platinum over an alloy, which lowers production costs. The company said the finished pieces will not cost consumers more or less than its silver items.
Jewellery historian Vivienne Becker said platinum carries an elite image and still conveys a sense of value even when used as a plating over an alloy. She said consumer demand has been moving toward white metals as gold prices have risen, and described Pandora’s plan as a marketing move aimed at more upmarket buyers.
Pandora said its research shows platinum is highly regarded by consumers and seen as the second most precious white metal after white solid gold.
Rollout Plans And Production Changes
The company said it will introduce a selected range of its best-selling bracelets in platinum-plated versions across 30 stores and online in northern Europe, before expanding the offering globally in the second half of 2026.
In the near term, Pandora said it will rely on third parties to carry out the plating process, before moving production to its own sites in Thailand and Vietnam. The company said it wants the transition to platinum plating to be completed by 2028.
De Pablos-Barbier told CNBC that the move is intended to reduce the company’s exposure to swings in silver trading.
Market Conditions And Earnings Impact
Silver prices reached record highs of more than $100 per ounce in January before easing back to about $75, a level that remains high compared with last year. Pandora said the price surge has had a temporary effect on its earnings.
Precious metals such as gold and silver have risen as investors look for assets seen as safer during periods of geopolitical tension and economic uncertainty. Danni Hewson, head of financial analysis at AJ Bell, said silver is linked to global economic conditions because it is used in electronics, medical equipment, solar panels, and batteries. She said demand from industry rises and falls with the pace of global economic growth.
Featured image credits: Instagram
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