GOLD LEAFING A BUDDHA IMAGE

When I was at the Buddhist temple in Kampung Koh yesterday, I saw this Buddha statue covered in gold leaves.  Actually there was also an activity to cover the statue with gold leaves.  From the information that I got in the Internet, quite a number of writers say that Buddhists buy gold leaves and place them onto a Buddha image as a way of gaining "merit"--a means of correcting one's karma (the concept of cause and effect that transcends individual lifetimes). The notion was that gold pressed onto the temple statues symbolizes generosity. 
Personally I feel that something must have gone wrong somewhere where this practice is concerned as Lord Buddha teaches moderation and not such excesses.  Perhaps, the devotees genuinely wanted to cover the Buddha statue with a thin piece of gold leaf to honour the teachings of Buddha and not with the intent of getting more wealth or benefits from such an action.
However, I do not believe that one can get merit by just placing a gold leaf on His image.  Merit must be earned through ones actions and sincerity of thoughts and pureness of heart. That is what I believe to be the core of what Buddha was teaching and preaching.  Correct me if I am wrong for I am not a Buddhist.  I remain humbly a servant of the Supreme Being, the creator of the universe.