In brief
Pandora, one of the world's leading jewelry retailers, has revealed plans to transition a significant portion of its products from silver to platinum plating due to the skyrocketing price of silver, which has more than doubled in the past year. The company's CEO stated that this shift aims to mitigate risks associated with silver price volatility, with platinum becoming more commonly used in its ranges by 2028.
Jeweller Pandora has announced it will shift from using silver in certain ranges to platinum plating, following a significant rise in the cost of silver over the past year, where prices have more than doubled. The company's chief executive noted that while silver products make up a large part of the brand, they will aim to reduce silver offerings to approximately 25% of their total product line as part of an effort to decrease exposure to price fluctuations in the precious metal market.Currently, most Pandora jewellery is crafted from silver, but the change to platinum plating is intended to be economically viable through the introduction of a proprietary alloy named Evershine, which the company already utilizes for gold-plated items. While platinum is generally more expensive than silver per ounce, this new alloy will help minimize production costs, allowing for a wider rollout of platinum-plated products.The transition aims to begin in 2026, with plans to progressively shift parts of the silver collection to platinum-plated designs, ultimately being completed by 2028. The company intends to manage initial plating processes with third-party partners before scaling operations to their facilities in Thailand and Vietnam. This strategic move seeks to enhance the durability and everyday wear performance of their jewellery, as customer acceptance of platinum appears high, according to recent consumer surveys.Pandora's CEO Berta de Pablos-Barbier expressed her frustration over the perception of Pandora as primarily a silver trading company, emphasizing the desire for the brand to be recognized for its broader jewellery offerings. The price increase for silver has had a noticeable impact on the company's earnings, affecting profitability due to elevated production costs related to the volatile market.Due to a combination of investor demand for safe-haven assets amid ongoing geopolitical tensions and industrial use of silver in electronics and renewable energy, Pandora is strategically adapting to these market conditions to better position itself for future growth.
