Nizam of Hyderabad: World’s Richest Ruler, Golconda Diamonds & Crown Jewels
Published by Orugallu Andhalu
For centuries, the name Nizam of Hyderabad has been synonymous with unimaginable wealth. Long before modern billionaires existed, the Nizams ruled one of the richest princely states in the world—so prosperous that their fortunes stunned British officials, European royalty, and global economists alike. From mountains of diamonds and rivers of gold to private treasuries overflowing with pearls, palaces, and priceless artifacts, the Nizam’s wealth was not just vast—it was legendary.
But how did this extraordinary fortune come into existence? Was it purely royal inheritance, or the result of strategic governance, control over trade, and access to rare natural resources? And what ultimately happened to this wealth after the fall of princely rule in India?
This article explores the astonishing rise, scale, and mysteries of the Nizam’s wealth—revealing why it continues to fascinate historians, treasure hunters, and curious readers even today.
Golconda: The Legendary Source of Diamond Wealth
The foundation of Hyderabad’s legendary wealth lay beneath the earth itself.
The vaults of Golconda Fort once safeguarded some of the most famous diamonds in human history. Among them were the Koh-i-Noor and the Hope Diamond, along with countless other priceless gems.
Golconda was not merely a fortress—it was the global nerve center of the diamond trade.
The World’s Only Diamond Market
During the medieval and early modern periods, India possessed the only known diamond mines in the world. The most productive of these lay in the Golconda region—particularly at Kollur Mine near present-day Guntur district, and Paritala and Atkur in today’s Krishna district. These diamonds were cut, graded, and traded locally, making Golconda a marketplace rather than just a mining zone.
Some of the most magnificent diamonds ever discovered originated here, including the Daria-i-Noor or “Sea of Light”, a breathtaking 185-carat diamond now part of Iran’s crown jewels.
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Before the Nizams: The Deccan’s Legendary Wealth in Medieval Records
Accounts of the Deccan’s astonishing riches date back as early as the 14th century, long before the rise of the Nizams. Some of the earliest and most vivid descriptions come from the military campaigns of Malik Kafur, the trusted general of Alauddin Khilji.
During his eastern and southern expeditions—to Warangal in 1310 and Madurai in 1311 —Malik Kafur returned to Delhi with treasure so vast that it stunned even the hardened elites of the Delhi Sultanate. These riches were meticulously recorded by Amir Khusrau, Khilji’s court poet, whose account reads more like poetry than inventory.
He wrote:
> “If a description of the boxes of jewels were attempted, there is no breast in which it could be contained, nor any heart that could appreciate its value. There were five hundred mans of precious stones… The diamonds were of such a colour that the sun will have to stare hard for ages before the like of them is made… The pearls glistened so brilliantly that the brow of the clouds will have to perspire for years before such pearls again reach the treasury of the sea… Every diamond sparkled brightly; it seemed as if it was a drop fallen from the sun.”
This lyrical testimony leaves little doubt: the Deccan was already legendary for its gem wealth centuries before Golconda became famous.
The Deccan and the Mughal Obsession with Wealth
To the Mughal emperors, the Deccan was an irresistible prize. Thus, the story of the jewels that would later form the Asaf Jah (Nizam) treasury must be traced back to the late 17th century, during the reign of Aurangzeb.
The Mughal Empire was sustained not merely by land revenue, but by an immense treasury accumulated through generations of conquest. Gemstones were considered ideal wealth—portable, durable, and instantly convertible into power and money during prolonged military campaigns.
Even Aurangzeb—renowned for his austere personal habits and disdain for royal ostentation—was keenly aware of the importance of treasure. He actively sought to augment the vast jewel collection he inherited from his father, Shah Jahan, through relentless campaigns in the Deccan. His decades-long military presence in the south was driven as much by strategic ambition as by the lure of extraordinary mineral and gem wealth.
By the time Mughal authority weakened and regional powers emerged, the Deccan’s reputation as a land of inexhaustible riches was already firmly established. It was upon this ancient, blood-earned foundation of treasure that Golconda—and later the Nizams of Hyderabad—would build one of the greatest fortunes the world has ever known.
“Golconda” — A Symbol of Infinite Wealth
By the Renaissance, the name Golconda had taken on a legendary aura. By the 1880s, English speakers used “Golconda” generically to describe any source of extraordinary wealth. Even today, gemologists classify the purest Type IIa diamonds —almost completely nitrogen-free—as “Golconda diamonds.”
Famous Diamonds of Golconda
Many of the world’s most celebrated diamonds are believed to have originated here:
* Hope Diamond
* Koh-i-Noor
* Noor-ul-Ain
* Princie Diamond
* Regent Diamond
* Wittelsbach-Graff Diamond
The Nizams and Absolute Economic Control
The immense wealth of Golconda eventually flowed into the hands of Hyderabad’s rulers—first the Qutb Shahi dynasty (until 1687), and later the Nizam of Hyderabad, who ruled from 1724 to 1948.
Imagine controlling nearly every major sector of a flourishing state — minerals, agriculture, land, and industry—for over 223 years. That was the reality of the Nizams.
Initially, the first Nizam ruled under the Mughal Empire. After Aurangzeb’s death, the Nizams became independent rulers. Later, following conflicts with the Maratha Empire, they accepted protection from the British East India Company.
This arrangement proved decisive. As client kings, the Nizams enjoyed internal autonomy while wealth accumulated uninterrupted.
Land, Power, and Profits
By the early 20th century:
* The Nizam personally owned 5 million acres (≈10% of the state), earning ₹25 million annually
* He received another ₹5 million from the state treasury
* 1,100 feudal lords controlled 30% of the land with nearly 4 million tenant farmers
* The state owned 50% or more of major enterprises
This concentration of wealth made the seventh Nizam one of the richest individuals in history.
Mir Osman Ali Khan: The Richest Man in the World
In September 1911, Mir Osman Ali Khan ascended the throne as the seventh and final Nizam. His coronation was a spectacle of jewels, pearls, and regal splendour.
Yet his reign was shaped by restraint. Despite inheriting enormous wealth, Osman Ali Khan was famously frugal. Gold and jewels lay stacked inside King Kothi Palace, keys carried only by the Nizam himself. It was this liquid wealth—gold and gems convertible instantly into cash —that earned him global fame.
According to the Forbes All-Time Wealthiest List (2008), Mir Osman Ali Khan ranks as the fifth richest person in recorded history, with an inflation-adjusted wealth of US $210.8 billion.
Jewels of the Nizams: A Lost Treasury Revealed
One of the world’s greatest jewellery collections— the Jewels of the Nizams —was acquired by the Government of India in 1995 to prevent its dispersal.
The collection spans over two centuries and contains:
* 25,000+ diamonds (12,000+ carats)
* 2,000+ emeralds (10,000+ carats)
* 40,000+ chows of pearls
Among its masterpieces is the Jacob Diamond, weighing 184.75 carats —almost twice the size of the Koh-i-Noor in its current form.
The jewels combine Mughal elegance, Deccani artistry, and European influence, set with Golconda diamonds, Colombian emeralds, Burmese rubies and spinels, and Basra pearls.
From Royal Treasure to National Heritage
After Hyderabad’s accession to India in 1948, Mir Osman Ali Khan created jewellery trusts to safeguard the collection. Following prolonged legal battles, the Indian government purchased the 173-piece collection for ₹218 crore in 1995.
Today, the jewels remain under high-security custody, occasionally displayed at the National Museum New Delhi, where they continue to mesmerize visitors.
Conclusion: Wealth That Became Legend
The wealth of the Nizam of Hyderabad was not myth—it was measurable, documented, and astonishing. From the diamond mines of Golconda to the guarded vaults of the modern Indian state, the Nizam’s riches tell the story of a unique moment in global history.
Though the empire vanished, its jewels endure—silent witnesses to an age when Hyderabad stood among the richest realms the world has ever known.
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Image Credits
All images used in this article are sourced from Wikimedia Commons and are used in accordance with their respective licenses.
*Usman Ali Khan (Portrait) — Bourne & Shepherd, Public domain, via Wikimedia Commons
*Sarpech, Rubies & Diamonds — Barunghosh, CC BY-SA 4.0, via Wikimedia Commons
*Coronation Belt — Barunghosh, CC BY-SA 4.0, via Wikimedia Commons
*Sarpech, Opaque Emeralds & Diamonds — Barunghosh, CC BY-SA 4.0, via Wikimedia Commons
Disclaimer:
This article is for informational and educational purposes only. Historical interpretations and estimates are based on publicly available sources.
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