Backed by the strong administrative skills he had acquired during his service with the Moghuls, Asaf Jah I laid the foundation for a stable Nizam rule. However, he appeared to have overlooked the importance of maintaining detailed records of the various assets in the Nizam’s treasury.
As the first Nizam of Hyderabad, Asaf Jah I ensured that the entire diamond trade—beginning with the Golconda diamond mines—remained under the control of the Nizam. This control extended to himself and all the Nizams who would follow. Revenue from the diamond trade formed a substantial part of the funds, that were allocated for the development of Hyderabad and for the welfare of the people.
The Nizams starting with the first Nizam, Asaf Jah 1 did a fairly good job of differentiating between, funds and assets that went into the
treasury of the Nizam and funds, that were earmarked for administrating Hyderabad and the rest of the Deccan region. Elaborate jewelry, some of the finest rubies, sapphires and emeralds and the finest of Golconda diamonds, were taken into the Nizam’s treasury.
It has been observed that the Nizams were not particularly meticulous about maintaining records related to the sale, transfer, or gifting of jewelry, gemstones, and fine Golconda diamonds. While it is likely that there were far too many valuable treasures to track, the lack of systematic record keeping encouraged theft and often caused confusion.
Rumors and stories continue to circulate about rare diamonds and opulent jewelry—once part of the Nizam’s treasury—that have reportedly been traced. In the absence of detailed historic records, such narrations often sound more like fairytales. Advanced testing and intense research work by trusted testing laboratories, is required to be done before, such claims can be verified to be authentic.
Diamonds from the Golconda mines and jewelry that once belonged to the Nizams are highly sought after. However, professional diamond collectors typically require certifications from reputed gemological laboratories before entering into any purchase negotiations. Interestingly some of these treasures, have remained elusive for centuries – generally in some private collection.
A classic example relates to recent rumors, coming from multiple sources. The major narrative is that, a rare Golconda blue diamond that was once set in an opulent turban ornament, worn by Asaf Jah 1 the first Nizam of Hyderabad – has been traced to a private collection in Europe. Interestingly this diamond, has never come up for auction or been mentioned in a high-profile sale.
It was in 1948 during the reign of Asaf Jah VII, the 7th Nizam of Hyderabad that, the Indian government ended the Nizam rule and included Hyderabad as a part of India. Some of the valuables in the Nizam’s treasury were shared, between decedents of the Nizams. The remaining treasures were transferred to the Indian treasury.