cold based powers destroy loot
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Same thing happens with pietrification (and disintegration).
If you click on the TVTropes link, it even states—as a general concept across more games than just Baldur's Gate—that "this could destroy their equipment as well." Baldur's Gate is also referenced under the main article under 'Video Games.'
Being turned to stone also has the same effect. Fire, on the other hand, does not have the same 'properties' in fantasy settings.
Anyway, this is not a bug. Moving to Not an Issue. :-)