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If you saw how they treat your checked in luggage you'd never do it again, at least not with anything else than clothes.
Claim the loss because they keep a list of the cases that get checked in. The case has a belt with a sticker that is later on placed in the list while they're handling it, so that they can keep a track of where is what. The moment they lost track of it can give you a better idea of what could have happened.
If you labeled it as a fragile bag they placed it in a separated belt, and then it was taken to a separate xray machine located in the handling area to later betaken to the plane with the rest of the cases. Could be that someone saw the content and decided to steal it, in that case it'd most likely be in the departure airport.
Just use one of your free days to go personally to the airport you landed in if it's your hometown as soon as possible, make a formal claim and demand it to be investigated and traced so that you can close the circle and try to find out when and where did they loseits track.
I hope you the best of lucks.
