Gold Is Dirt Cheap Relative to Crude Oil GOLD IS NOW A SCREAMING BUY According to the indicator we updated earlier this month, gold is now a screaming buy versus crude oil... As we mentioned in that column, gold and oil respond similarly to inflationary pressures... so their prices move in a predictable pattern. Over the last 25 years, one ounce of gold has been able to buy, on average, about 14.8 barrels of oil. Right now, however, that ounce of gold won't even buy you eight barrels of oil. Gold is incredibly cheap. If oil maintains its current price, gold would need to rise 89% to reach its normal ratio. What oil is going to do is anyone's guess... but as our chart of the week shows, the gold-to-oil ratio rarely stays this out of whack for long... – Ian Davis