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The world’s largest jewelry retailer is scrambling to adapt as precious metals prices reach unprecedented heights. Pandora announced it will slash silver usage from 60% to just 20% of its product range, pivoting to platinum-plating over alloys as silver prices more than doubled in the past year, hitting record peaks above $100 per ounce before settling around $75.
Industry Giant Forced to Reinvent Strategy
Pandora CEO Berta de Pablos-Barbier revealed the Danish firm’s dramatic shift represents a fundamental business model change for the charm bracelet maker. The company will introduce platinum-plated versions of its bestselling bracelets across 30 northern European stores before a global rollout in late 2026, with the complete transition targeted for 2028.
The jewelry giant plans to use third-party plating initially before moving operations to its Thailand and Vietnam facilities. Despite platinum’s higher per-ounce cost, Pandora insists the platinum-over-alloy approach will maintain current consumer pricing while reducing exposure to silver’s extreme volatility. The company reported the metal surge created a “temporary impact on earnings.”
Precious Metals Rally Drives Safe-Haven Demand
Gold has rebounded strongly, posting weekly gains driven by bargain hunting and a softer dollar. The rally reflects broader geopolitical tensions, particularly ongoing US-Iran nuclear talks in Oman that have created uncertainty across commodity markets. These negotiations cooled oil prices but amplified precious metals demand as investors seek safe-haven assets during global uncertainty.
Silver’s industrial applications in electronics, medical equipment, solar panels, and batteries make it particularly sensitive to economic cycles. Financial analysis firm AJ Bell notes silver prices are “tied to global economic health” and fluctuate with industrial demand patterns. The CME Group has already raised margin requirements responding to heightened volatility across precious metals markets.
Investment Performance Reflects Metals Boom
The precious metals surge is delivering exceptional returns to specialized investment funds. The Fidelity Emerging Markets Limited fund achieved 74% returns over the past year, more than double the average from global emerging markets investment trusts, largely thanks to metals exposure and Chinese technology holdings.
Jewellery historian Vivienne Becker describes Pandora’s platinum shift as “clever marketing” targeting upmarket consumers. She notes a broader consumer trend toward white metals as gold prices climb, with platinum carrying an “elitist image” that appeals to luxury buyers seeking “that feeling of preciousness.”
Market Volatility Creates New Challenges
The commodity rally shows signs of entering a potential bust phase despite recent gains. Both gold and silver markets display increased volatility that could amplify sudden price movements. Oil markets experienced similar whiplash effects from the vague US-Iran talks, with ICE Brent falling over 5% weekly to $67 per barrel.
Pandora’s strategic pivot reflects broader industry adaptation to commodity price shocks. The company’s market research indicates platinum ranks as “the second most precious white metal after white solid gold” in consumer perception, supporting its transition strategy. As CEO de Pablos-Barbier emphasized, the goal is to “decouple from silver trading” volatility that threatens profit margins in an increasingly unpredictable metals market.
Sources: Thisismoney, Bfmtv, Economic Times, Mexiconewsdaily, Oilprice, BBC
