“Rehypothecation : The practice by banks and brokers of using, for their own purposes, assets that have been posted as collateral by their clients.” Investopedia.
You’ll remember the fuss about the announcement from Germany that it intended to repatriate it’s gold reserves both from the US and Paris. It’s not moving very quickly, probably because it’s not there. Why? The answer again, probably lies in rehypothecation and is explained in this good clip by Glenn Beck. His premise is that Germany’s call to repatriate threatens what he describes as a Ponzi scheme.
We don't need big words like "rehypothecation," to explain why our gold isn't where it should be. We just say, "Gordon bloody Brown."