Silver Price Volatility Shakes Pandora’s Outlook, Shares Slide After Jefferies Downgrade

Mumbai: Shares of Pandora, the world’s largest jewellery company, fell sharply by about 7 percent on Tuesday. The fall came after global brokerage firm Jefferies downgraded the stock rating from 'Buy' to 'Hold'. The brokerage warned that sharp swings in silver prices have become a major risk for the company. According to analysts, Pandora is facing pressure from two sides — weak consumer demand and high silver prices, which is increasing production costs.

Silver Price Swings Create Big Risk

Jefferies said even if silver prices fall slightly in the future, investor confidence may take time to recover. Analysts noted that silver prices are still nearly three times higher than last year levels. This could hurt the company’s profits in the coming years. Some estimates suggest that Pandora’s profits could fall by as much as 60 percent by 2027 if cost pressures remain high.

Worst Day For Silver Since 1980

Silver recently recorded its worst single-day performance since 1980. Market experts linked this to political developments in the United States. The nomination of Kevin Warsh as the next US Federal Reserve Chairman reduced fears about central bank independence. This led investors to move money into safe assets like metals earlier, causing sharp price swings later.

Stock Performance Remains Weak

Pandora shares were down around 6.7 percent during Tuesday afternoon trading. The stock has already seen major losses earlier. In 2025, shares dropped nearly 46 percent. So far in 2026, the stock has fallen around 26 percent. Jefferies also cut its target price for Pandora from 850 Danish Kroner to 530 Danish Kroner, showing weaker future expectations.

Price Hike Backfires On Demand

To manage rising costs, Pandora increased jewellery prices by around 14 percent. However, this move reduced customer buying, especially among lower-income consumers who form a large part of Pandora’s customer base. Analysts believe inflation has affected this group the most, reducing spending on non-essential items like jewellery.