Pandora’s Platinum Pivot: Escaping the “Silver Squeeze” and Redefining Affordable Luxury
In a move that signals a seismic shift in the affordable luxury jewelry market, Pandora announced today a radical strategic overhaul: the world’s largest jewelry maker by volume is moving away from its signature sterling silver. Facing historic volatility in silver prices, the Danish giant confirmed it will transition a significant portion of its product assortment to platinum-plated jewelry, aiming to insulate its business from the “commodity trap” that has rattled the industry over the past year.
The announcement, delivered by CEO Berta de Pablos-Barbier following the release of Pandora’s fourth-quarter results, outlines a future where the iconic silver charm bracelet evolves into a more durable, tarnish-resistant platinum-plated accessory. This pivot is not merely aesthetic; it is a survival strategy in an era of skyrocketing raw material costs.
The End of the Silver Standard?
For decades, Pandora’s brand identity has been inextricably linked to sterling silver. However, the economic reality of 2025 and early 2026 has forced a reevaluation of this reliance. With silver prices surging more than 140% in the last 12 months—driven by industrial demand from the solar and EV sectors as well as speculative trading—the cost of goods sold (COGS) for silver-heavy jewelers has become unpredictable.
“Being so dependent on only one commodity for any business, no matter which industry you play in, is high-risk,” CEO Berta de Pablos-Barbier told analysts during the Thursday conference call. Her message was clear: diversification is no longer optional; it is an operational necessity.
Escaping the “Commodity Trap”
The core of Pandora’s new strategy is risk management. By relying almost exclusively on silver, Pandora’s profitability was at the mercy of global market fluctuations that were entirely outside its control.
“So this is about reducing the commodity and increasing our basket of materials,” de Pablos-Barbier explained. “The intention is not to replace our entire assortment. We will be keeping some collections in silver. So silver will continue to be part of our basket of materials. It’s just it will not be as dominant as it is today.”
This strategic pivot allows Pandora to decouple its retail pricing from the daily spot price of silver. By moving to a plated model, the bulk of the jewelry’s volume is composed of a proprietary metal alloy (similar to the base used in their gold-plated lines), which is then coated in platinum. While platinum is traditionally more expensive than silver per ounce, the amount used in plating is minimal compared to casting a solid piece.
The Economics of Platinum-Plated Crafting
Pandora’s Chief Financial Officer, Anders Boyer, provided the financial logic underpinning this transition. The shift is not just about swapping metals; it represents a fundamental change in the company’s cost structure—moving from a model driven by raw material costs to one driven by labor costs.
“By 2027, we expect to be able to transition half of the targeted silver-based assortment into platinum-plated,” Boyer stated on the call.
Balancing Labor vs. Materials
The new manufacturing process is more complex. Unlike casting solid silver, platinum plating requires a multi-step layering process to ensure durability and shine. This increases the “crafting time” per unit.
“With platinum-plated crafting, the lower commodity exposure will be partly offset by higher labor costs, as it will require more crafting time to work with platinum and plating,” Boyer noted.
However, from a financial planning perspective, this trade-off is highly advantageous. “But of course, labor cost is a more stable and predictable element than commodities,” Boyer added. Labor contracts and factory output can be forecasted years in advance, whereas silver prices can fluctuate by double digits in a single week. By shifting the cost base toward labor, Pandora gains stability, protecting its margins without having to pass volatile price hikes onto consumers.
What This Means for the Consumer
For the millions of Pandora customers worldwide, the transition raises an immediate question: Will the jewelry look or feel different?
According to de Pablos-Barbier, the consumer experience will remain seamless, if not improved. Platinum is a member of the platinum-group metals (PGMs) and is renowned for its incredible resistance to tarnish and oxidation—a common complaint with sterling silver.
The CEO assured analysts that the new platinum-plated collections had undergone rigorous consumer testing. The feedback highlighted that customers valued the “whiter,” brighter shine of platinum and its low-maintenance nature. Crucially, Pandora plans to maintain price parity. De Pablos-Barbier confirmed that jewelry will cost about the same platinum-plated as it did in silver, ensuring that the brand remains accessible to its core demographic despite the upgrade in surface materials.
Strategic Rollout and Global Expansion Timeline
Pandora is not rushing this transition blindly. The company has outlined a phased rollout designed to test supply chains and consumer acceptance in key markets before a global launch.
- Q1 2026 (Northern Europe): The first wave of platinum-plated products will hit stores in Northern Europe. This region will serve as the initial testbed for marketing messaging and inventory management.
- H2 2026 (Global): Following the European pilot, the collections will be introduced to the US, Asian, and wider global markets during the second half of the year, likely in time for the critical holiday shopping season.
- 2027 Targets: The company aims to have 50% of its targeted silver-based assortment transitioned to platinum-plated by the following year.
This gradual ramp-up allows Pandora’s manufacturing facilities in Thailand and Vietnam to adjust their production lines, retraining artisans to handle the specific requirements of platinum plating technologies.
Industry Context: The Great Flight from Silver
Pandora is not the only jewelry titan rethinking its relationship with silver. The report highlighted a broader industry trend where major players are distancing themselves from the metal, albeit for different reasons.
Tiffany & Co.’s Upmarket Shift
“It’s not just Tiffany that’s moving away from silver,” the report noted, drawing a sharp distinction between the two brands.
While Pandora is cutting back on silver to maintain affordability and margin stability, Tiffany & Co. is reportedly moving away from silver to chase exclusivity. Under the stewardship of LVMH, Tiffany has been steadily reducing its reliance on entry-level silver goods to focus on gold and high jewelry, aiming to elevate the brand’s prestige.
For Pandora, the motivation is different but equally urgent. They are not trying to abandon the “affordable” segment; they are trying to save it. By innovating their material mix, they are fighting to keep jewelry at a price point that the average consumer can afford, even as the raw materials market becomes hostile to mass production.
A New Creative Vision: Leadership Changes at Pandora
Coinciding with this material revolution is a significant reshuffling of Pandora’s executive creative team. As the brand adopts new materials, it is also bringing in new blood to steer its aesthetic future.
The company announced that Philippa Newman has been tapped as the new Chief Product Officer (CPO), effective March 9, 2026.
Philippa Newman to Lead Product Innovation
Philippa Newman is a veteran of the luxury fashion world, bringing over 25 years of experience to Copenhagen. She joins Pandora from Michael Kors, where she served as Chief Brand and Product Officer for the past year. Her resume is a tour of global fashion powerhouses, including tenures at Tory Burch, Alexander McQueen, and Donna Karan.
In her new role, Newman will report directly to CEO Berta de Pablos-Barbier and join the executive leadership team. Her mandate is ambitious: she is tasked with leading the creation of all Pandora products. According to the company statement, her goals will include:
- Elevating Collections: Infusing Pandora’s offerings with “distinctive designs.”
- New Aesthetics: Driving expansion into “new aesthetic territories,” potentially moving beyond the traditional charm bracelet into broader jewelry categories.
- Innovation: Accelerating the use of “advanced materials and craftsmanship”—a directive that aligns perfectly with the new platinum-plated strategy.
Newman’s background in high fashion suggests that Pandora may be looking to inject more trend-driven, fashion-forward sensibilities into its collections, moving beyond sentimental gifting into the realm of self-purchase fashion accessories.
Stephen Fairchild Moves to Strategic Role
Newman succeeds Stephen Fairchild, a long-time Pandora executive who has served as Chief Product Officer since 2011. Fairchild is not leaving the company; instead, he will transition into the newly created role of Chief Strategic Creative and Cultural Officer.
In this capacity, Fairchild will focus on the “big picture” creative concepts. He will lead trend explorations and manage high-profile collaborations and partnerships—areas that have become increasingly vital to Pandora’s brand heat (as seen in recent years with collaborations involving Disney, Marvel, and Stranger Things). Fairchild will remain on the executive leadership team, ensuring a continuity of institutional knowledge during this transition.
Conclusion: Adapting to a New Reality
Pandora’s announcement today is a case study in corporate resilience. Faced with a “Silver Squeeze” that threatened to erode margins or force price hikes that would alienate customers, the company has chosen innovation over capitulation.
By pivoting to platinum-plated alloys, Pandora is betting that the consumer cares more about the look, durability, and brand promise than the metallurgical composition of the core metal. If successful, this move could set a new standard for the volume jewelry industry, proving that stability can be engineered, even when commodity markets are in chaos.
As Philippa Newman prepares to relocate from New York City to Copenhagen later this year, she walks into a company that is fundamentally transforming its DNA—from a silver-smithing giant to a diversified, material-agnostic fashion power. The industry will be watching closely as the first platinum-plated charms hit shelves in Northern Europe this spring.
