The recent negative oil price was a big shock. What are some other financial instrument/security which can go to negative price? Am I right that ALL commodities that require storage space run the risk of negative price? And zero risk of negative price for stocks and bonds? Good to know to prepare for the negative price risk.
You probably will get thousands of answers explaining why it couldn't / shouldn't / wouldn't ever ever be negative.
When did we ever have a glut of anything? Only reason we ended up with so much oil is because OPEC, being the egregious pigs that they are, pumped out too much in the first place. Can we have a surplus of food like eggs. Sure, but we would never run out of storage. It'll just be thrown into garbage. Can we have too much gold to a point where we have no place to store them? Possibly, but not likely, considering that gold production, unlike oil, is fixed. Lastly, can stocks or bonds go into the negative territory? Never. Once the stock goes to zero, the company is declared bankrupt and it would be delisted from the index. Interest rates and price for bonds move inversely. So even if we have a negative interest rate, prices will end up moving higher.
According to cme emails to me any futures can turn negative that have physical delivery and that when “we come close to cross the bridge” we notify you