Jewellery retailer Pandora has announced a strategic shift from silver to platinum-plating in certain product lines, driven by a sharp increase in silver costs. Over the past year, silver prices have more than doubled, with other precious metals like gold also seeing significant price hikes.
Berta de Pablos-Barbier, Pandora’s chief executive, clarified that the company does not plan to replace silver entirely but aims to reduce silver use to about 20% of its merchandise. This move intends to minimize Pandora’s exposure to volatile silver market fluctuations.
Headquartered in Denmark and one of the world’s largest jewellery sellers, Pandora operates 278 stores across the UK. The brand is best known for its silver charm bracelets, which currently comprise approximately 60% of its production.
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Although platinum is more expensive by ounce than silver, Pandora will apply platinum plating over an alloy base, making the process more cost-effective. Importantly, the final products will be sold at prices comparable to their silver counterparts, ensuring customers don’t face higher costs.
Jewellery historian Vivienne Becker commented on the change, stating, “Platinum has obviously got an elitist image, so people will still get that feeling of preciousness,” even if it’s plated over an alloy. She sees this move as smart marketing that appeals to upmarket consumers, especially amid increasing prices for gold.
Pandora noted that market research indicates consumers highly regard platinum, viewing it as the second most precious white metal after white solid gold.
The company plans to launch “a curated selection” of its best-selling bracelets in platinum-plated versions initially in 30 outlets across northern Europe and online, followed by a global rollout in the latter half of 2026. In the short term, Pandora will rely on external suppliers for platinum plating before shifting production to its facilities in Thailand and Vietnam. The full transition to platinum plating is expected 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."
This announcement comes after Pandora reported a decline in UK sales last year, attributed partly to price hikes responding to rising precious metal costs. The company has raised prices several times recently—5% last October, 4% in April, and a low single-digit increase in August—to offset commodity price pressures.
Silver prices peaked at over $100 per ounce in January before settling near $75, still significantly above last year’s levels.
Pandora acknowledged that soaring metal prices have temporarily impacted earnings. The rise in precious metal costs is linked to increased investor demand for so-called “safe haven” assets amid ongoing global geopolitical tensions and economic uncertainties.
Danni Hewson, head of financial analysis at AJ Bell, noted, “Silver is tied to global economic health,” highlighting its industrial applications in electronics, medical equipment, solar panels, and batteries. This means silver demand fluctuates with global economic growth rates, influencing its price volatility.