Jeweller Pandora has announced a pivotal strategy to transition from silver to platinum-plating in response to the surge in silver prices. This decision comes after silver prices have more than doubled over the past year, alongside increases in other precious metals.
The company's chief executive stated that while they do not plan to entirely eliminate silver from their product lines, only about 25% of their offerings will consist of silver as part of their efforts to mitigate exposure to market volatility.
Pandora is recognized as one of the world's largest jewellery retailers, predominantly using silver for most of its jewellery. Although platinum carries a higher cost per ounce, the company intends to create a more economical alloy, partially offsetting costs and transitioning its silver ranges over time to platinum-plated pieces using their proprietary alloy, Evershine.
Plans to launch the new platinum-plated offerings are set for 2026. Initially, Pandora will use third-party services for plating before moving production to their facilities in Thailand and Vietnam, with an ultimate goal of reducing sensitivity to commodity pricing over time.
While the move aims for completion by 2028, the transition is also driven by the desire to enhance the everyday performance of its products. Consumer feedback has indicated a strong acceptance of platinum as an alternative to silver.
Pandora's leadership expressed frustration over the company's heavy association with silver, aiming instead to diversify their material usage and reduce dependency on a single commodity. This shift comes as silver prices have reached record highs in January and although they have since receded, they remain elevated compared to last year.
This strategy marks a significant change in the brand's identity and operational strategy, responding to both market conditions and consumer preferences in a rapidly evolving industry.
