Where Data Tells the Story
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The oil-to-gold price ratio—a long-running gauge of the relative value of major commodities—fell to an all-time low of 0.51 grams per barrel in November 2025. This is 59% below its 1960s pre-Bretton Woods average and 52% below the 2014–November 2025 average.
Since the 1970s, the ratio has moved through six major phases:
1. Oil Crisis (1970s–1980s)
Geopolitical shocks—including the Arab oil embargo and the Iranian Revolution—pushed the ratio to nearly 2× its 1960s average.
2. Oil Price Slump (1980s–1990s)
Weak oil prices and steady gold kept the ratio 19% above 1960s levels.
3. Commodity Boom (2000–2008)
China’s rapid industrial growth drove oil demand, sending the ratio to 144% above its 1960s baseline.
4. Gold Rally (2008–mid-2010s)
Post-crisis gold demand lowered the ratio to 70% above 1960s levels.
5. Shale Boom and Beyond (mid-2010s–2023)
The U.S. shale revolution and rising gold prices drove the ratio toward historic lows, culminating in a then-record low by April 2025.
6. Gold Surge (2024–2025)
Gold prices doubled while oil prices declined, pushing the ratio to its current record low.