One more cause for the "secret key not available" message: GPG version mismatch.
Practical example: I had been using GPG v1.4. Switching packaging systems, the MacPorts supplied gpg was removed, and revealed another gpg binary in the path, this one version 2.0. For decryption, it was unable to locate the secret key and gave this very error. For encryption, it complained about an unusable public key. However, gpg -k and -K both listed valid keys, which was the cause of major confusion.