RealMoney Radio: Pools of Wealth

"A perfect storm scenario has been created to push gold prices higher," Jim Cramer told "RealMoney" radio show listeners Wednesday.

Demand for gold is through the roof thanks to the fact that people in Iran, China and India are hoarding 24K gold, he said. "Individuals here don't trust their own currency," Cramer said, so they're hoarding 24K gold.

This is going on at the same time that we're running out of gold in the ground, he said.

And, finally, there is also a shortage of gold stocks to actually invest in. While there used to be dozens of gold mining stocks to invest in, including companies in Canada, South Africa and the Americas, Cramer said that there are now only three investment-worthy mines: Goldcorp( GG Quote), Barrick Gold(ABX Quote) and Newmont Mining(NEM Quote).

These factors combined mean that the three stocks are constantly moving higher, Cramer said, adding that it's important to buy these stocks anytime there is a pullback.

Goldcorp is the cheapest, he said, because it has the lowest finding costs.

He said that he used to own Anglo American( AAUK Quote) for his charitable trust Action Alerts PLUS, but that this is not a pure play on gold because it is also exposed to diamonds.

Cramer also said to be on the lookout for companies that are flying under the radar and that Cephalon( CEPH Quote) will be a stock to watch. He owns Cephalon for his trustAction Alerts PLUS.

Cramer had sold some Cephalon, in part because the health care sector is getting hit by a rotation into precious metals and infrastructure, and in part because of news that the Food and Drug Administration rejected the company's breakthrough attention-deficit-disorder drug Sparlon.

Then company CEO Frank Baldino made an appearance on Cramer's "Mad Money" TV show. Baldino said that he believes that the drug will be approved in August -- news that Cramer said could have moved the stock had it not been off the radar.