Pandora to switch from silver to platinum over price surge

Jeweller Pandora has said it will switch from using silver in some of its ranges to platinum-plating following a dramatic increase in prices.

Silver prices have more than doubled over the past year with other precious metals such as gold also surging.

Pandora’s chief executive Berta de Pablos-Barbier said the aim was not to make all jewellery platinum-plated, but silver will be reduced to around 20% of its goods to lessen its exposure to the metal given the recent volatility.

The Danish firm, one of the world’s biggest jewellery retailers, currently makes the majority of its products from silver.

Pandora is well-known for its charm bracelets.

Chief executive de Pablos-Barbier said that around 60% of its business was currently in silver.

Although platinum is more expensive than silver per ounce, Pandora said it will plate platinum over an alloy, which would make it cheaper to use. It added that the end product would not cost the consumer any more or less than its silver pieces.

Jewellery historian Vivienne Becker said: “Platinum has obviously got an elitist image, so people will still get that feeling of preciousness,” she said, even if it is based on an alloy.

She added that there had been a shift by consumers towards white metals after gold prices have risen, and the announcement by Pandora was “clever marketing” that would appeal to the “upmarket” consumer.

Pandora said: “Our insights show that platinum is highly regarded by consumers and perceived as the second most precious white metal after white solid gold.”

It said it will introduce “a curated selection” of its “best-selling bracelets in a platinum-plated version” across 30 stores and online in northern Europe, before a global rollout in the second half of 2026.

It added in the short-term it would use third parties to plate its platinum jewellery, before moving to its sites in Thailand and Vietnam.

It wants the pivot to platinum plating to be completed by 2028.

De Pablos-Barbier told CNBC: “If you look at our volatility of silver, one of the things that we have to [do] for the company is to decouple that from the silver trading.”

Silver prices hit record highs of over $100 per ounce in January before falling back to around $75, but remains elevated compared with last year.

The firm said that the surging price had a “temporary impact on earnings”.

Precious metals such as gold and silver have rallied recently as investors sought so-called “safe haven” assets during global geopolitical uncertainty and economic volatility.

“Silver is tied to global economic health,” said Danni Hewson, head of financial analysis at AJ Bell.

It is used in the manufacture of electronics and medical equipment, solar panels and batteries which means demand for the metal from industry “ebbs and flows according to how fast the world’s economy is growing.”