Silver has become too expensive: the Danish company will gradually switch to platinum alloyed with other metals.
Silver is too expensive, and Pandora is changing. In one year, the price of silver quadrupled, reaching $121 an ounce, equivalent to about $4 per gram. After this boom, the price dropped slightly to about $74 an ounce, which is still about double what it was a year ago. This price surge is a major problem for all jewelers who use silver, like Pandora. The Danish group is also the world’s leading jewelry brand in terms of number of pieces sold.
For this reason, Pandora has decided to switch to platinum. Although platinum costs much more than silver, the choice (according to Pandora) will allow savings, as this metal can be used in small quantities combined with other less expensive materials. This is no easy task, in any case, given the large production volumes of Pandora, the world’s largest jewelry brand in the low-to-mid price range. And it’s also a daunting challenge for Berta de Pablos-Barbier, who recently took over as CEO of Pandora, replacing Alexander Lacik. Despite Pandora’s announcement, platinum prices also fell 9%, falling below the all-time high of $2,900. The company’s difficulties with silver prices have impacted its publicly traded stock, which has lost nearly a third of its value in just a few weeks.
We must decouple the company’s performance and its shares from the raw material; we are a jewelry brand, not a silver trader.
Berta de Pablos-Barbier, CEO of Pandora
