So after reading Peter Schiff's "Crash Proof" i really want to start investing and hedge against inflation before the dollar collapses but being a student only working 5 hours a week, thousands of dollars in debt and not a lot of money to invest with. I was thinking about pulling out a personal loan and investing in gold, foreign currencies and commodities like Peter talks about in his book. Is pulling out a loan to short the dollar a good idea or am i just crazy? If it isn't could you provide me with some alternate strategies.
Take solace: You are already short the dollar with your student loans. If the dollar plummets over time, the principal you owe (in real terms) will be a fraction of what you owe now.
As far as taking out a loan: DON'T! It's just not worth the risk. You will have to pay massive interest (likely not fixed) and any gains will be heavily taxed. Really, there is almost no way to come out ahead buying with borrowed funds.