This Diamond Was Worth a Fortune: The Nizam Used It as a Paperweight

In the long history of royal extravagance, few stories are as astonishing as that of the Jacob Diamond, a 185-carat gemstone so remarkable that it ranks among the largest polished diamonds in the world. Yet for years, this priceless jewel was reportedly treated with startling indifference by the man who owned it: Mir Osman Ali Khan, the seventh Nizam of Hyderabad.

Born into one of the wealthiest royal dynasties in India, Mir Osman Ali Khan was widely regarded as one of the richest men on earth during the first half of the twentieth century. His treasury contained immense quantities of gold, pearls, precious stones and jewellery. Among these treasures was the Jacob Diamond, a colourless gemstone weighing approximately 184.75 carats and named after

the merchant Alexander Malcolm Jacob, who sold it to the Nizam’s father, Mir Mahbub Ali Khan, in the late nineteenth century.

The diamond’s journey to Hyderabad was dramatic. Its purchase led to legal disputes and controversy, and after the matter was settled, the gem reportedly disappeared from public view. According to accounts cited by historian John Zubrzycki and later retold in several publications, the diamond was tucked away in a shoe by Mahbub Ali Khan and largely forgotten.

Years later, when Mir Osman Ali Khan inherited his father’s possessions, the stone was rediscovered. What happened next became the stuff of legend. Rather than displaying the diamond in a crown or a ceremonial necklace, the Nizam is said to have kept it on his desk and used it as a paperweight. The act was not born of ignorance; rather, it reflected the extraordinary scale of his wealth. To a ruler whose vaults overflowed with jewels, even one of the world’s greatest diamonds could become an everyday office accessory.

The Jacob Diamond remained in the possession of the Nizam’s family until the Indian government acquired the famed “Jewels of the Nizam” collection in the 1990s. Today, the diamond is preserved in India and is generally believed to be housed in secure Reserve Bank of India vaults. It remains one of the most celebrated gemstones associated with Indian royalty.

The image of a 185-carat diamond quietly holding down papers on a desk perfectly captures the staggering wealth of Hyderabad’s rulers. In a world where such a gem would normally be the centrepiece of a museum collection, the Nizam’s casual use of it remains one of history’s most unforgettable displays of royal opulence.