- Shares of Pandora rose about 55% in three months amid silver price decline
- Pandora plans to replace sterling silver with platinum-plated jewellery
- CEO said diversification aims to offer more flexible material choices
Shares of Pandora surged around 55% in three months as the world's largest jewellery maker seeks to reduce exposure to volatile precious metals.
The Denmark-based company will continue to replace sterling-silver jewellery with platinum-plated alternatives despite the white metal dropped from its highs, CEO Berta de Pablos-Barbier told CNBC's Squawk Box Europe on Thursday, August 13.
Notably, falling silver prices is one the key reason for 55% rally in shares, the news portal said citing Citi analysts. Pandora CEO, however said that the company is going ahead with its plans to replace silver with planitum despite a decline in silver price.
“We are diversifying our portfolio of materials, and this is about making a Pandora that is going to be more flexible and offering diverse materials for our consumer,” she said.
Silver has tumbled after multi-year high of over $120 an ounce in January. Spot silver traded below $65 an ounce on Thursday. The white metal was around $80 an ounce in February, when Pandora announced for the first time that it plans to shift to platinum-based jewellery. According to the CEO, this switch is expected to help the company maintain its profit margins high.
Pandora shares jumped 4% during morning trade in Copenhagen following better-than-expected second-quarter earnings due to a US tariff refund before the market opened.
The jewellery-maker has hedged 90-100% of silver for 2027 at around $65. It further elevated its full year guidance for 2026, forecasting 0-3% organic growth, against -1% to 2% estimated earlier.
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