Jacob Diamond

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The Jacob Diamond is a large diamond, believed to be the same stone as the Victoria Diamond, formerly owned by the Nizam of Hyderabad and currently owned by the government of India. It has a rectangular cushion-cut diamond with 58 facets, measures 39.5 mm long, 29.25 mm wide and 22.5 mm deep. The diamond weighs 184.5 carats (36.90 g). The 6th Nizam of Hyderabad, Mahbub Ali Khan, bought the Jacob diamond around 1887. The Government of India purchased the diamond, along with other treasures of the Nizam, in 1995. Current market value of the diamond is about 400 crores (4 billion Rupees) which is roughly equivalent to 80+ million USD.

[edit] History

The uncut diamond was said to be over 400 carats in weight before it was sent to Europe to be cut. The diamond was then put up for sale where it was set before Nizam of Hyderabad. However, initially Nizam was quite uninterested in the diamond, and offered a mere 46 lakhs (4 million) Rupees for it. Nizam was asked to make a safety deposit if he was to go through with the transaction. The European jewel cutters did not like this offer, but were forced into court when they lost track of the safety deposit. Ultimately, Nizam was rewarded the diamond for almost half of his original offer, 23 lakhs (2.2 million) Rupees (approx. $50,000 by 2005 rates) when the case was resolved.

Nevertheless, since then, Nizam still showed little interest in the diamond, and the object was used for a variety of household objects such as a paper weight for many years. This continued until the diamond's true value was realized and it was stored away as another of Nizam's treasures. After much litigation, the diamond was purchased by the Union of India from the Nizam's trust for an estimated $13 million (now valued at $80 million) and is held at the Reserve Bank of India in Mumbai. On occasion as part of the Nizam's jewellery exhibit, the diamond can be viewed at Salarjung Museum at Hyderabad, where it may become a permanent exhibit.