Who benefits in supressing the price of gold? Answer the parties buying physical gold.

If China has their agents (JPM etc) trade large quantities of paper gold in the paper market to drive down the "price" of gold, China then benefits in buying the physical gold. The smaller losses in covering their paper shorts are a smaller premium than if they only bought physical gold. Maybe the paper churning is 10-50 times the physical withdrawal. Lots of smoke to cover the acquisition of the worlds gold at a lower average price.