Precious metals looks like ready to plunge

During some days the strengthening dollar didn't do much on precious metals. That's true, the strength was mainly due to the euro weakness.  Yesteryear, high-yielders  like AUD have joined the party and we have finally  had a sell-off in gold and silver. But, in  the most important juncture we find the unhedged gold producers index HUI.

 The GSR (Gold to Silver ratio) seems to be on the point to rally in more impulsive fashion than it did until now.  And that, as we remember, is an obvious sign of mounting expectations of deflation.

In the "real economy", IBM has reported its earnings and put aside a "better than expected", we note the drop in the consulting business revenue, - the clients of this IBM's unit don't want to invest in new contracts and sometimes aren’t resuming the old ones.