Here's the issue:

"He will be liquidating his American Gold Eagles IRA Account. This means he will be cashing it in"

Separate Account and the account's Investments.

You can sell the coins, and the money still sits in the IRA Account. <== no distribution, nothing to report

Or, you can distribute all the money and Close the Account. <== triggers 1099-R

Or, you can Close the account by removing the coins from the trustee management. <== triggers 1099-R

Nothing here is Sched D. It's all protected by the IRA structure.