Gold is an investment like anything else, take warren buffets advice and you can't go wrong. "Buy when low and sell when high".
I collected around £10k worth of Krugerrands a couple of years back as they were one ounce coins and easy to follow the gold fix as it's done by ounce. I bought my coins at £800 an ounce, watched it go a bit lower around £750 then chickened out when they rose to £850 an ounce and I had other more pressing investments to hand. Then I watched gold go to over £1k an ounce and it's hovered around that since. If it went back down to £800 I'd jump back in...a lot.
I'd personally stick to one ounce krugerands, you can buy sovereigns which are cheaper but I like to reference the gold spot price and know each one of my coins are worth equivalent to the days spot price. Albeit if you want to cash the coin up you'll lose up to 5% which is the spread the bullion dealer will want.