Platinum and Palladium: The Next Big Movers in Precious Metals
According to Chris Gaffney, President of World Markets at EverBank, platinum and palladium could be poised for significant gains as economic recovery strengthens in key industries. Despite underperforming gold in 2024, Gaffney sees these metals as prime for a breakout.
Industrial Demand Driving Growth
In a recent interview with Kitco News anchor Jeremy Szafron, Gaffney stated, “Silver, platinum, and palladium are better buys right now than gold.” He attributes this outlook to:
- Increasing industrial demand
- Ongoing recovery in global manufacturing sectors
Automotive Industry Remains Key
Despite the rise of electric vehicles, platinum and palladium remain crucial for:
- Reducing emissions in traditional vehicles
- Meeting tighter emission standards globally
- Use in catalytic converters for both gasoline and diesel engines
Gaffney noted, “Platinum and palladium are typically in a deficit position. Even with the rise of electric vehicles, there’s still strong demand for internal combustion engine vehicles, maintaining high demand for these metals.”
Economic Factors Supporting Growth
Several economic factors are contributing to the positive outlook for platinum and palladium:
- Federal Reserve rate cuts weakening the U.S. dollar
- Lower rates potentially leading to higher industrial demand
- Recent 50 basis point rate cut bolstering industrial metals and commodities
Gaffney predicts, “As individuals start to take over the reins of the demand side, I think silver, platinum, and palladium will catch up.”
Geopolitical Influences
Geopolitical tensions are adding another layer of support for precious metals prices:
- Ongoing tensions in the Middle East
- Uncertainties surrounding U.S. elections
Gaffney observed, “The industrial recovery combined with geopolitical risks provides a unique environment for these metals to outperform.”
Conclusion
With platinum and palladium already facing supply deficits, the combination of industrial recovery, monetary policy shifts, and geopolitical uncertainties creates a bullish outlook for both metals as we enter the final quarter of 2024.
For more detailed insights from Chris Gaffney and an in-depth analysis of current trends in the precious metals market, refer to the full interview available on Kitco News.