COMEX is a prime example of a futures
market whose gold contract has thrived precisely because of a worldwide
clientele trading there, providing huge turnover and thus liquidity.
By contrast, attempts to
launch gold futures contracts in London and Singapore never took off because
of a lack of interest and hence liquidity. But in spot gold the fixing
in London is an example of a liquid market in which large volumes can normally
be done at a single price.
Liquid Market
A market in which selling
and buying can be easily accomplished because of many participants willing and
able to trade substantial quantities of gold at
small price differences.