At $20,800 including GST, this is probably the world's most expensive pencil. So what do you get for all that money?

An elegantly ribbed cedar wood writing instrument with built-in eraser and sharpener, an 18-carat white gold extender and end-piece plus three diamonds on the cap beneath a count's coat-of-arms.

Only 99 of these 'perfect' pencils were produced. And you'll have to be quick to get one. Because two-thirds have been sold. The maker is Graf von Faber-Castell, the premium brand of Faber-Castell, one of the world's oldest industrial companies, now headed by 8th generation family member Count Anton Wolfgang von Faber- Castell, 60.

Faber-Castell was founded in Nuremberg, Germany in 1761. Today, it produces more than 1.8 billion black-lead and colour pencils a year, with facilities in 19 countries.

Count Andreas Graf von Faber-Castell was in town last Friday to showcase the $20,800 pencil. On display alongside it at Elephant & Coral at Wheelock Place are the world's oldest surviving wood-cased pencil, found in the attic of a 17th century house after remaining unnoticed for three centuries, and the world's smallest pencil.

Count Andreas told The Business Times that Faber-Castell's pencils are not just pencils - they are an outlet for creativity.

As he put it, sending a greeting by e-mail will never be as nice as a handwritten note on a greeting card.

This article was first published in The Business Times on Sep 8, 2008.