It's like inflation, an increase in the money supply does not generate inflation instantly, it takes many months. Even though people are well aware there is massive printing of fiat going on, they don't begin raising the price of their labour or the goods they sell until they feel the push, which takes time to filter through. At some point many months down the road, inflation expectations get built in to the psychology, then it really starts to rock. Just like that, the knowledge that the same gold has been lent out and leased many times over does not alarm anyone until they actually experience it.

And that is likely what lies behind the short squeeze on gold as well, the powers are beginning to expect inflation (the destruction of their fiat) so they are reacting in anticipation by repatriating their gold - but slowly so as not to alarm anyone and in case the gold is leased out or gonzo and the US government needs time to replace it. Germany is only repatriating a small portion of their gold and they are taking a few years to do it. Ike