solving suction leak by lowering pump?

I have an ongoing suction leak that cannot be solved. I now have the 3 way valve siliconed off, and everything else capped off. Either there is an underground leak, or I am chasing my tail. I noticed that when I took the valve apart the other day, water bled out of the pool through the top off it. If I were to dig out my pool equipment space two feet or so and re plumb, install a gate valve for service,so that pump was now below water level and basically gravity fed, would that eliminate my problem? Also make the pump more efficient? It seems to me it would, but I want to hear from an expert.

A suction leak will still be there. Why do you think you have a suction leak? What are the symptoms? Do you really want your electric motor in a two foot deep hole that may fill with water? A pump that has worn parts will cause a suction leak. Does the pump leak when running? How about a picture of your plumbing or a description. How many lines from the pool to the pump. Skimmer/main drain? I assume the pool is in ground. How many lines from the pump back to the pool? What equipment is between the pump and pool on the return side? What does the 3 way valve control? What do you have capped off? Is the 3 way valve below the water level? Is there a spa? Is the valve below the spa water level?

Leaks can be found, but it requires a patient systematic approach. They are going to be in 1. The pool vessel, 2. The pipes/fittings or 3. In the equipment. Each can be isolated and tested by different techniques.

Sorry, that won't help, and the efficiency improvement would be very marginal.

If you could move the pump 10' below water level, you might succeed, but not 1 - 2 feet. The flow rate incoming to your pump is much greater than the "gravity feed' rate, so even with the pump lower, the pipe goes into a suction state (below atmospheric pressure) as soon as the pump is on.

This company has been around for a long time: http://www.leaktools.com/
and has some leak detection guidelines posted on their site.