FinancialMediaGuide notes that Pandora shares have shown significant growth amid declining silver prices, reaching DKK 556, the highest level since May 2025, propelling the company to the top of the STOXX 600 index. The reduction in raw material costs has amplified the positive impact on the company’s financial performance.
The drop in silver prices directly affects Pandora’s expenses, as recycled silver accounts for approximately 67 percent of the material used. This creates an opportunity to increase margins and maintain profitability. At FinancialMediaGuide, we note that lower production costs provide a strategic buffer against potential pressure from currency fluctuations and tariffs.
The dynamics of precious metal prices reflect expectations of a tightening U.S. monetary policy, which strengthens the dollar and reduces the appeal of gold and silver as safe-haven assets. We believe Pandora gains an additional advantage by lowering production costs during a period of metal market volatility.
Despite the rise in stock prices, consumer caution remains a challenge. Organic sales growth in 2025 has been revised to six percent, reflecting caution among European and American buyers. We see a need to review pricing strategies and strengthen marketing campaigns to support demand.
Financial results for the third quarter showed a six percent increase in revenue, while margins remain under pressure from currency fluctuations and tariffs. This demonstrates the resilience of Pandora’s business model; however, optimizing supply chains and cost control remain key factors for boosting profitability.
The DKK 4 billion share buyback program confirms management’s confidence in the company’s prospects and supports market valuations. We note that such initiatives enhance Pandora’s investment appeal and create long-term value for shareholders.
Using recycled metals reduces the carbon footprint and decreases dependence on primary raw materials. This allows the company to minimize operational risks and strengthen its brand position in international markets and among ESG investors.
Price-sensitive demand and limited potential to increase sales volumes without losing customers remain key challenges. We forecast that further growth will depend on the recovery of consumer demand, the introduction of innovations in the product line, and effective cost management.
At Financial Media Guide, we forecast that if the fourth quarter confirms positive sales momentum and improved margins, Pandora shares will continue to strengthen in 2026. Investors are advised to monitor raw material prices, corporate reports, and strategic initiatives to make informed investment decisions. Deep fundamental analysis and monitoring macroeconomic factors remain essential for evaluating the company’s prospects in the jewelry market.
