Silver rally puts jewelry maker Pandora business model at risk, Deutsche Bank says

A surge in silver prices is driving up costs for Pandora, with Deutsche Bank warning the jewelry brand could see its business model break down if prices remain elevated.

In a note, the bank said silver holding near US$90 an ounce would make Pandora’s cost structure unsustainable. 

Silver prices jumped to record US$99.37 on Friday. 

Pandora, which sells silver charm bracelets for US$70 and upwards, as well as lab-grown diamond jewellery made at its own factories in Thailand, is grappling with lower-income shoppers cutting their spending, the impact of US tariffs and a 161 percent rise in silver prices last year.

Deutsche Bank downgraded Pandora to “hold” from “buy” and cut its target price to DKK480 from DKK1,100. The bank said that while cost pressures were manageable when silver traded near US$50, mitigation strategies now look ineffective.

Even if Pandora reduces silver use by about one-third, its 2027 gross margin could slide to around 65 percent from roughly 80 percent, the bank said.

Shares in Pandora have plunged 63 percent over the past year.

Staff reporter and Reuters