India dumps bllions of US dollars for gold

According to this link here India has dumped 6.7 billion US dollars it had in its reserve in exchange for 200 tons of gold. India bought the gold from the IMF, and stated how the European and United States' economies had "collapsed", and how this move proves how strong the Indian economy is. This clearly relates to some of the issues we have talked about in class, namely how many countries, especially developing ones in Asia are trying to move away from the dollar.
The value of gold has also skyrocketed to new heights. This makes me wonder if possibly that investments in gold may be the next bubble. I feel like people who invest in gold are fearful over the state of the economy, and thus, when fear subsides, the price of gold is going to drop significantly. I think that India is going to regret buying so much gold at such a high price.
I do think that this might actually be good for the economy in the long run, because the IMF was willing to accept those US dollars in exchange for their gold. I wonder if the IMF still has the 6.7 billion US dollars, or if it has been passed on elsewhere.