Jeweller Pandora has confirmed it will switch from silver to platinum for several of its jewelry lines as a direct response to the dramatic rise in silver prices.
In the past year, silver prices have more than doubled, which has significantly impacted the jewelry market. As part of its new material strategy, Pandora’s CEO has stated that the brand will not eliminate silver entirely, but will reduce its use to around 25% of its overall jewelry offerings in an effort to navigate the recent price volatility.
As one of the largest jewelry retailers globally, Pandora currently produces most of its pieces from silver. The company aims to complete its transition to increased platinum use by 2028, with the expectation that platinum will offer improved wearability and durability compared to silver.
Pandora has also indicated that consumer testing shows a favorable acceptance of platinum among shoppers, which aligns with the company’s goal of enhancing its brand image beyond being seen solely as a silver jewelry provider.
Recent months have seen silver prices fluctuate, having peaked at record highs before experiencing a decline. However, prices remain elevated compared to one year ago, contributing to what Pandora describes as a temporary impact on earnings due to rising material costs.
Through this strategic pivot, Pandora seeks to strengthen its market position as a high-end jewelry brand and mitigate risks associated with raw material dependency.
