Cramer's 'Mad Money' Recap: Going for the Gold

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When market players are at odds with the market, they should often bet with it, Jim Cramer told viewers of his "Mad Money" TV show Friday.

That's because the short-term fund managers that make up the market don't care about what other people think, he said, adding that, "What they believe usually becomes true."

Investors are "defaulting" to gold because they are looking at the declining dollar and the long bond rally "as a sign that things are getting very bad in the economy," Cramer said. "They want to sell all of their stocks and buy gold."

The right time to buy gold is now, said Cramer, because these stocks are primed to go up. His favorite gold pick is Yamana Gold (AUY Quote - Cramer on AUY - Stock Picks).

As "yellow metal will always be the refuge when times are tough," the fund managers are running for the gold, he said.

Cramer believes this to be "wrong" and said he reads the dollar decline and the rally in the long bonds as a good thing.

"I believe it means the end of inflation and the beginning of the Fed rate-cutting cycle," he said. "But the market doesn't agree."

The gold stocks are working, so Cramer said people must join in. "Gold should be going lower based on the facts, but it will go higher because of what Wall Street believes," he said.