On September 30th, EverBank's Global Markets President Chris Gaffney stated that with the economic recovery of key industries, precious metals such as platinum and palladium may become the next rising varieties.

Despite lagging behind gold in 2024, Gaffney believes that platinum and palladium will see breakthroughs. He stated in an interview that silver, platinum, and palladium are currently more worth buying than gold, and mentioned the growth in global industrial demand and the sustained recovery of the manufacturing industry.

Platinum and palladium are crucial for reducing car emissions, but their effects go beyond the scope of traditional cars. Gaffney pointed out, "Platinum and palladium are usually in short supply. Even with the rise of electric vehicles, demand for internal combustion engine cars remains strong, and demand for these metals remains at a high level

The global transition towards a green economy, particularly with stricter emission standards, has made these metals indispensable elements in automotive manufacturing, especially catalytic converters, which remain crucial for reducing harmful emissions from gasoline and diesel engines.

Platinum and palladium may also benefit from the continued interest rate cuts by the Federal Reserve, which have weakened the US dollar. Gaffney emphasized that lower interest rates may lead to increased industrial demand, further supporting these metals. He believes that silver, platinum, and palladium will catch up.

Due to new pressure on the US dollar, the recent 50 basis point interest rate cut by the Federal Reserve has boosted industrial metals and other commodities. Due to the shortage of platinum and palladium, these factors have created a bullish outlook for these two metals entering the fourth quarter of 2024.

Geopolitics is also playing a role. Gaffney pointed out that geopolitical tensions, especially in the Middle East, and the increasing uncertainty of the US election are supporting the prices of precious metals. If tensions escalate further, safe haven buying may accelerate, driving platinum, palladium, and gold higher.

He added that the industrial recovery combined with geopolitical risks provides a unique environment for these metals to outperform the market.