The stated business model is that the company bought coins and stored them. If true, the coins still exist and the taxpayer has not lost anything, he just needs to retrieve the coins. But news stories suggest that the company never actually used investor money to buy and hold actual metal. In which case this could be criminal theft.
I don't have time to research thoroughly, that's the taxpayer's job. This story suggests that as of June 2016, a bankruptcy proceeding was still active and creditors were still in line to get something back. <a rel="nofollow" target="_blank" href="
http://www.mystatesman.com/news/crime--law/with-millions-precious-metals-missing-austin-mother-steps...>
If true, that would mean that a loss hasn't actually occurred yet, and the loss would be deducted on a 2017 tax return or later (whenever the bankruptcy closes) and should be treated as an investment loss not a theft loss. But this is really for the taxpayer to investigate and determine since the taxpayer should be a creditor in the bankruptcy and should be getting updates from the trustee.
