Jeweller Pandora has announced plans to switch from using silver in some of its collections to platinum-plating due to a substantial surge in silver prices. Over the last year, the price of silver has more than doubled, prompting the company to rethink its material sourcing.
Pandora's chief executive clarified that while the aim is not to completely eliminate silver, it will comprise only around 25% of its product offerings moving forward. This strategy responds to the recent volatility of silver prices and seeks to diversify the company's material dependencies.
Currently, Pandora produces most of its jewellery from silver, but the company plans to innovate by introducing a new platinum-plated range in 2026. Despite platinum being more expensive per ounce than silver, Pandora intends to utilize an alloy system that could make it more cost-effective for production.
As part of this transition, parts of its silver lines will gradually shift to becoming platinum-plated using an alloy called Evershine, already in use for their gold-plated merchandise. The firm aims to minimize its reliance on silver over time, with plans for improved production techniques at its facilities in Thailand and Vietnam.
The CEO, Berta de Pablos-Barbier, expressed frustration at Pandora being viewed primarily as a silver trading company, emphasizing the brand's desire to break free from such a singular commodity association. The transition to platinum aims not only to mitigate risks associated with fluctuating prices but also to enhance the durability and appeal of jewellery, with consumer feedback already indicating a high acceptance rate for the durable metal.
Recent trends show that precious metals like gold and silver are gaining traction as safe-haven assets amidst geopolitical uncertainties, which has exacerbated fluctuations in silver prices. The firm anticipates that the pivot towards platinum will be fully realized by 2028.
