Usman Salis
⬤ Silver price swings are pushing Pandora A/S to rethink its entire jewelry lineup. The Danish company recently flagged slower sales growth, pointing partly to unpredictable silver costs. Their solution? Shift about half their collection to platinum-plated pieces instead. It's a direct response to how dramatically the relationship between these two metals has changed.
⬤ The numbers tell the story. Ten years ago, one ounce of platinum could buy you more than 60 ounces of silver. Today? That ratio's collapsed to under 27. The chart tracking this decline shows it wasn't just a blip—it's been a steady trend across multiple market cycles. Silver has quietly been gaining ground on platinum year after year.
⬤ When silver prices keep jumping around, it creates real headaches for companies like Pandora. You can't maintain stable pricing for your products when your raw materials are all over the map. That uncertainty is driving the switch to different metals—it's about finding more predictable cost structures in their manufacturing.
⬤ This whole situation shows how long-term commodity shifts can force manufacturers to completely redesign their strategies. The platinum-to-silver ratio isn't just an abstract market indicator—it's actively reshaping what jewelry companies make and how they make it.
Usman Salis
