Always quote strings containing spaces:
jvmargs="-Dsun.rmi.dgc.client.gcInterval=3600000 \
-Dsun.rmi.dgc.server.gcInterval=3600000 \
-Djava.library.path=\"$PALANTIR_HOME/bin\" \
-Djava.protocol.handler.pkgs=com.palantir.protocols \
-Dlog4j.defaultInitOverride=true \
-XX:+HeapDumpOnOutOfMemoryError \
-XX:SoftRefLRUPolicyMSPerMB=10 \
-XX:MaxPermSize=192m \
-XX:+DisableExplicitGC"
echo "$jvmargs"