To be honest, I don't know why silver is skyrocketing. While I guess it has industrial uses, since digital photography replaced film, those are attenuated. It is not nearly as easily transported (per unit value) as gold, is not used as dowry material (except in poor countries, like Cambodia, for example). Unless it is bundled into popular precious metal ETF's ??? Otherwise, since I don't know why it is appreciating at this rate, I couldn't tell you whether it is in a bubble.

It's easier to discuss gold (also on a tear). It tends to act this way when a major currency appears to be crumbling (something I don't see immanently happening). Another reason might be that, since (as you pointed out) foreign governments have not increased their purchases of US debt, they may be stockpiling gold instead. (Two that come to mind as possible culprits are China and Russia - also possibly India).

The world order is dramatically changing. The US, for reasons that need not be discussed her, has self-inflicted an unnecessary wound by essentially withdrawing from the trade structure we established 80 years ago, has financially attacked our closest trade partners and largely credited a feeling of distrust and caution by military allies. I'm guessing there may be a universal movement towards not being solely dependent on the USD.

If that's the reason why precious metals are soaring, then their trajectory will be influenced by US economic and trade gymnastics. If it is a Euro-centric response to the new dangers of an expansionist Russia, then the level of saber-rattling coming out of Eurasia may keep things pumping.

Jeff