📈 Oil-to-Gold Ratio Hits Record Low: Just 0.59 Grams per Barrel in May 2025

The oil-to-gold price ratio, a key indicator of relative commodity value, has reached a record low of 0.59 grams per barrel in May 2025, 53% below both its 1960s pre-Bretton Woods average and 2014–May 2025 average. Since the 1970s, the ratio has evolved through five key phases:

1. Oil Crisis (1970s–1980s)

Geopolitical shocks, including the Arab oil embargo and Iranian Revolution, drove extreme volatility, with the ratio averaging nearly double 1960s levels.

2. Oil Price Slump (1980s–1990s)

Falling oil prices and stable gold prices kept the ratio 19% above 1960s levels.

3. Commodity Boom (2000–2008)

China’s demand surge spiked oil prices, pushing the ratio 144% above 1960s levels.

4. Gold Rally (2008–mid-2010s)

The 2008 financial crisis fueled gold’s rise, reducing the ratio to 70% above 1960s levels.

5. Shale Boom & Beyond (mid-2010s–2025)

The U.S. shale revolution and rising gold prices drove the ratio to its lowest point in modern history by April 2025.