📈 Oil-to-Gold Price Ratio Reaches Historic Low: 0.79 Grams per Barrel in February 2025

The oil-to-gold price ratio has undergone significant shifts since the collapse of the Bretton Woods system in the early 1970s, marked by five distinct periods:

1. Oil Crisis (mid-1970s–mid-1980s)

Geopolitical tensions, including the Arab oil embargo and the Iranian Revolution, led to extreme fluctuations. The oil-to-gold ratio averaged nearly twice the levels seen in the 1960s.

2. Low Oil Prices (mid-1980s–1990s)

A sharp decline in oil prices, while gold remained stable, resulted in an oil-to-gold ratio averaging 19% above 1960s levels.

3. Commodity Boom (2000–2008)

Surging demand from China drove oil prices higher, pushing the oil-to-gold ratio to an average of 144% above 1960s levels.

4. Gold Surge (2008–mid-2010s)

The 2008 Global Financial Crisis triggered a flight to gold, lowering the oil-to-gold ratio, which averaged 70% above 1960s levels.

5. Shale Revolution and Oil Price Decline (mid-2010s–2025)

The U.S. shale boom reduced oil prices, while gold prices climbed. By February 2025, the oil-to-gold ratio had fallen 36% below its 1960s average—its lowest level in modern history.