Jeweller Pandora Climbs on Silver's Price Plunge

Jeweller Pandora climbs on silver's price plunge

Impact of Silver Price Decline on Pandora

COPENHAGEN, Feb 2 (Reuters) - Shares in Danish jewellery maker Pandora rose as much as 10% to top the pan-European STOXX 600 index on Monday, driven higher by a historic slump in silver prices.

Market Reaction

Pandora's shares are on track for their best day since May 2025, extending Friday's gains. By 1403 GMT the shares were up 9.4% at 556.60 Danish crowns ($88.13).

Pandora's Strategic Focus

Gold and silver prices remained in freefall on Monday, extending last week's collapse in metals prices on fears stemming from Kevin Warsh's nomination as the next head of the U.S. Federal Reserve and a subsequent increase in margin requirements by CME Group.

Future Earnings Report

Some analysts view Warsh as being more hawkish, which would signal that interest rates would stay higher for longer, supporting the dollar and raising the opportunity cost of gold and silver, dimming their appeal.

LOWER SILVER PRICES DELIVER BOOST

Recycled silver accounts for about 67% of the raw materials used by Pandora, the company's 2024 annual report shows.

Spot silver tumbled by 12% on Monday after plunging 27% Friday for its biggest fall on record. It has shed about 40% since touching a record peak last week.

"The sharp increase in the silver price has been a key concern in the market over the last couple of months," Jyske Bank analyst Janne Vincent Kjaer said in an emailed comment referring to potential margin pressure for Pandora in 2027.

Pandora has locked in much of its silver costs for 2026, it said in its earnings report for the third quarter.

Its stock sank 50% last year as U.S. tariffs on imports and the surging price of silver added to its costs while shoppers were more cautious with discretionary spending.

New CEO Berta de Pablos-Barbier has said the company would focus on developing new product lines and materials to reduce its commodity exposure.

Pandora is due to publish fourth-quarter earnings on February 5, when it will also present strategic priorities for 2026, including an update on plans to lower commodities exposure to protect margins.

($1 = 6.3159 Danish crowns)

(Reporting by Stine Jacobsen and Elviira LuomaEditing by Bernadette Baum and David Goodman)