Editor’s Note
**Editor’s Note:** As silver prices climb, Pandora pivots its material strategy, sending shares higher.
The world’s largest jewelry retailer, Pandora, has been hit hard by soaring silver prices. Now, the company plans to shift focus to another precious metal, sparking a jubilant surge in its stock.
The Danish jewelry chain Pandora, by revenue, is considered the world’s largest jewelry retailer. A large portion of its assortment consists of relatively affordable jewelry accessible to average earners: most pieces are not solid silver but silver-plated.
However, since silver prices have been catapulted to new heights, Pandora has faced a cost problem. If selling prices were to rise in tandem with the precious metal’s price, demand—and consequently revenue—would collapse.
The stock market had already seen severe consequences: almost in parallel with the rise in silver prices, Pandora’s stock plummeted from 1,414 Danish kroner (approximately 189 euros) at the start of 2025 to just 469 kroner (around 63 euros) at the end of January—a loss of 67 percent.
Now, the company is reacting. To allay investor concerns about its dependence on silver, Pandora announced on Thursday that it will increasingly focus on platinum-plated jewelry. Platinum, a precious metal also used industrially, for instance in automotive catalysts, is currently significantly cheaper compared to silver.
Following the announcement, Pandora’s shares temporarily surged by seven percent. This came despite the company forecasting largely unchanged organic growth in its simultaneously released 2026 annual report.
With this move, the jewelry retailer essentially becomes a direct hedge against falling silver prices. The spot market price for silver had again dropped by 17 percent at times on Thursday morning. Nevertheless, Pandora’s strategic shift makes sense, as silver is still trading at nearly $80 per troy ounce, more than 150 percent higher than a year ago.
The question is: Should investors now bet on this shift and re-enter? Analysts had warned that the volatile silver price was a “harmful problem” for Pandora. The Danes are now apparently addressing this issue, giving the stock a boost. However, it wasn’t just the silver price that put pressure on Pandora in 2025: consumer reluctance to spend also impacted revenue. For this year, Pandora therefore expects only stagnant growth between minus one and plus two percent.
However, the forecast profit margin (earnings before interest and taxes) is between 21 and 22 percent, which is very high. Relief from falling silver prices or a new material mix would be directly reflected there. Whether this succeeds will be seen at the earliest in the first-quarter figures, which Pandora will present on May 6.
