The Enigmatic Tale of the Jacob Diamond: A Billionaire's Hidden Treasure

The Jacob Diamond's Intriguing History

What could be considered the most extravagant display of wealth ever? Perhaps it’s the story of a 184.75-carat diamond, which was wrapped in a dirty cloth and concealed in an old shoe due to its supposed manhoos (cursed) nature. This diamond, known as the Jacob Diamond, ranks among the largest and most flawless diamonds globally. The Nizams of Hyderabad were among the wealthiest individuals of their time, with Mir Mahaboob Ali Khan, the sixth Nizam, having a penchant for luxurious items, including exquisite jewelry and rare diamonds. He even owned the renowned necklace of Marie Antoinette from France.

However, the Jacob Diamond's captivating history is what truly sets it apart, as it was never treated with the respect that such a magnificent gem warranted. Previously referred to as the Imperial Diamond or the Great White Diamond, its story is intertwined with that of Alexander Malcolm Jacob, whose real name was Iskandar Meliki bin Ya’qub al Birri, born in 1849. Zubrzycki’s account draws from an obituary in The Times of London from early 1921, which depicted Jacob as a romantic figure, influential in Simla and a significant asset to the political secret service. Notably, he was the diamond merchant who sold the Jacob Diamond to the sixth Nizam of Hyderabad, Mahaboob Ali.

Jacob became a favored jeweler among the royalty and British officials in Imperial India, establishing a jewelry shop in Shimla in 1876 that specialized in precious stones and antiques. The Nizam's most trusted aide was his Armenian valet, Albert Abid, who was not always honest. For example, while the Nizam never repeated his suits, Abid would resell them back to him, leading the forgetful ruler to believe they were new.

To reach the Nizam, one only needed to connect with Abid. The Nizam, known for his immense wealth, would simply express his approval or disapproval with the words "Passand" or "Na Passand." Price was never an issue. It was through Abid that Jacob sought to sell a diamond he had acquired from a South African mine for Rs 21 lakhs, intending to sell it to the Nizam for a significantly higher price. However, Mahaboob Ali insisted that he would only buy the diamond if it met his expectations; otherwise, the deposit would be refunded.

Ultimately, the Nizam declined the purchase, stating that the diamond appeared smaller than anticipated. Jacob found himself in a predicament, as few could afford such a gem. He had to sell it at a reduced price and enter into a covert agreement with the Nizam. However, before the transaction could finalize, Jacob faced an arrest warrant in Bengal. The Nizam managed to keep the diamond as part of an out-of-court settlement, never compensating Jacob for the owed amount. Eventually, the Nizam lost interest in the diamond, labeling it manhoos, and it was hidden away in an old shoe, where it was later found by his son, Mir Osman Ali Khan, who reportedly used it as a paperweight.