Danish jewellery maker Pandora is preparing to shift a portion of its production to platinum-plated pieces as surging silver prices threaten profitability. The move, announced on Wednesday, , reflects a broader trend of companies seeking alternatives to increasingly expensive precious metals amid global economic uncertainty.
The price of silver has more than doubled in the past year, reaching $76.06 per ounce as of , according to Priority Gold. This represents a 135% increase from $32.30 per ounce in early . While platinum remains more expensive at $2,100 an ounce, its price has only risen by 3% over the same period, making it a comparatively stable option for Pandora.
Pandora, the world’s largest jeweler by volume, intends to initially offer platinum-plated versions of its best-selling bracelets in 30 stores and through its e-commerce platform later this year. The company plans to expand its platinum offerings to include charms in the second half of . This strategic shift aims to reduce the company’s reliance on silver, which has become increasingly volatile.
Despite the change in materials, Pandora aims to maintain price parity. A spokesperson for the company stated that the platinum-plated version of its popular bracelet will retail for approximately $80, mirroring the price of the sterling silver version. For context, the same bracelet in 14k gold currently sells for $2,350, while a gold-plated version is priced at $200. This pricing strategy suggests Pandora is absorbing the higher cost of platinum to remain competitive and accessible to consumers.
The decision to incorporate platinum comes as Pandora also navigates other challenges, including wary consumers and steep tariffs. The company’s move is a direct response to the financial pressures created by the soaring cost of silver, a key component in its signature charm bracelets. The company’s CEO has emphasized the need to decouple from the volatile silver market, according to reports.
The broader market context reveals a growing investor interest in precious metals as a hedge against economic risks and rising global debt. Gold and silver have both experienced significant price increases over the past year, driven by concerns about economic uncertainty. However, the dramatic surge in silver prices has been particularly acute, prompting companies like Pandora to seek alternative materials.
Pandora’s move isn’t solely focused on platinum. The company also manufactures lab-grown diamond jewelry in Thailand, diversifying its product offerings and potentially mitigating risks associated with fluctuations in precious metal prices. This demonstrates a broader strategy of supply chain flexibility and material diversification.
The implications of Pandora’s decision extend beyond the company itself. It signals a potential shift in the jewellery industry, where manufacturers may increasingly explore alternatives to traditional precious metals in response to price volatility. The move could also influence consumer preferences, as platinum-plated jewellery becomes a more accessible option for those seeking a premium look without the high cost of solid gold or platinum.
While platinum is currently experiencing relative price stability compared to silver, it’s important to note that it remains a significantly more expensive metal overall. Pandora’s ability to maintain price parity through plating suggests a focus on cost management and efficient production processes. The success of this strategy will likely depend on the company’s ability to maintain quality and appeal while utilizing a different material composition.
Shares in Pandora have been affected by these concerns, though specific details regarding share performance were not provided. The company’s ability to successfully navigate the challenges posed by rising silver prices and maintain its market position will be closely watched by investors and industry analysts alike.
The jewellery maker’s decision to embrace platinum-plated pieces represents a calculated response to a challenging market environment. By diversifying its materials and maintaining competitive pricing, Pandora aims to mitigate the impact of silver’s price surge and continue delivering affordable jewellery to its global customer base.
