In brief
Jewellery giant Pandora has announced a shift from using silver to platinum plating in its product ranges due to a significant increase in silver prices. The company aims to reduce its silver offerings to about 25% by 2028, citing the desire to lessen exposure to fluctuating metal costs. This transition will introduce an alloy that promises to make platinum more cost-effective while improving the durability of their products.
Jeweller Pandora has announced it will be transitioning from silver to platinum-plated items in some of its collections due to a significant surge in silver prices. Over the past year, silver prices have more than doubled, contributing to a shift in the company's strategy to mitigate exposure to this volatility.The chief executive of Pandora stated that while not all jewellery will be switched to platinum, silver will represent only about 25% of the brand's offerings moving forward. Currently, a large portion of the company's jewellery is made from silver, but the rising costs necessitate this change.Pandora plans to create an alloy that allows for more economical use of platinum, which, while more expensive than silver by the ounce, can be more cost-effective in this new formulation. The shift will commence with platinum-plated ranges in 2026, moving gradually to incorporate them into the brand’s offerings more widely over the next few years.Short-term plans involve collaborating with third parties for platinum plating before establishing the process in their own facilities in Thailand and Vietnam to further control costs and reduce dependence on silver. The ultimate goal is to complete this transition by 2028, as the company believes platinum will offer enhanced performance for everyday wear compared to silver.The recent hike in silver prices was driven by various factors, including its designation as a critical mineral and increasing demand from industrial applications, undermining profits at Pandora due to its reliance on silver as a core material. This change signals a considerable shift in the jewellery retail landscape as brands adapt to fluctuating raw material costs.
