Asaf Jah 1 was initially a Mughal governor under Aurangzeb and later other Mughal emperors. After the Mughal Empire weakened, he declared de facto independence, though he still paid nominal allegiance to the Mughal emperor.
Staking his claim to be the first Nizam of Hyderabad, Asaf Jah 1 also brought the Golconda diamond mines under his control. This gave him the rights to tax profits and collect mining fees.
When he became the Nizam of Hyderabad, the diamond mines in the region came under his administration, including the rights to taxation and profits, though mining activity had dwindled by then. The Golconda diamond mines under the Nizams included the famous diamond mines, most notably the Kollur Mine near the Krishna River.
Reports observe that, by the time Asaf Jah 1 formally established Hyderabad as a semi-independent state in 1724, the peak of Golconda’s diamond mining glory had already passed. While this might be partially true, valuable diamonds belonging to the Nizams were often neglected and officially documentation was weak.
As an example, the Jacob Diamond (also called the Imperial Diamond) which weighs approximately 184.75 carats and is a colorless, cushion-cut diamond, was stored in a shoe by Asaf Jah 6. While some reports claim that, the diamond fell in the show by mistake, others seem to be confident that the Nizam kept it there for safety! The intentions of Asaf Jah V1 were never clear because, this priceless diamond was discovered in the show by Asaf Jah VII, the 7th and last Nizam of Hyderabad.
Recent reports mention two colored diamonds also from the Golconda mines, that were once in the possession of Asaf Jah 1 the first Nizam of Hyderabad. The story is that each of these diamonds, a pink diamond and a blue diamond, were set in separate turban ornaments worn by Asaf Jah 1 on special occasions. No official record was maintained by the Nizam for these diamonds.
Rumors in the recent past claim that the blue diamond, called the Seraphim Blue Diamond is now part of the collection maintained by a seasoned Russian diamond collector. Presuming that the piece was at one time set in a turban ornament, experts estimate the weight of the Seraphim Blue Diamond at round 7 to 9 carats. While this is not a huge weight, the vivid blue color rating for the piece, makes it highly sought after. No authentication as yet for the story but, auction houses and professional diamond investors would be keeping a keen watch.
The collection of diamonds in the Nizam’s treasury, continued to increase all through the reign of the Nizams. The Hyderabad royal treasury, especially under the Nizams who came after Asaf Jah 1, was known to contain enormous wealth, including hundreds of jewels, uncut diamonds, emeralds, rubies, and pearls—some of the finest in the world. However, systematic documentation was poor or nonexistent.
Several legendary diamonds and historic items associated with the Nizams have not been traced. The lack of accountability made the treasury vulnerable to internal pilferage, corruption, and loss over the decades.
