Time is money: £33million watch is the most valuable in the world encrusted with 110 carats of rare coloured diamonds

At a cost of £33 million, this new watch – believed to be the world’s most expensive – is proof that time really is money.

The Graff Hallucination, designed by London jewellers Graff Diamonds, is a 110-carat watch coated in colourful rare diamonds.

Graff Diamonds staff are said to have spent thousands of hours making the new ladies watch, which was unveiled at the Baselworld watch and jewellery fair in Switzerland this week.

With a colourful layering of diamonds, it may not be the most efficient watch in the world, but it is certainly one of the most spectacular.

Laurence Graff, the chairman and founder of Graff Diamonds, described the watch as a ‘sculptural masterpiece’.

According to the Evening Standard, he said: ‘For many years I have thought about creating a truly remarkable watch that illustrates our all consuming passion for diamonds.’

Mr Graff, who started out as a jewellery apprentice, founded the company in 1960.

In 1967, with stores already open in London, Mr Graff expanded his business into Asia, opening up a jewellery concession in Singapore.

Six years later, he became the first jeweller to win a Queen’s Award to Industry. He went on to win this again in 1977, 1994 and 2006.

The company, which has flagship shops in Knightsbridge and on New Bond Street, opened its first store outside the UK in Monaco in 2000.

Graff Diamonds now has outlets across the world, including in the United States, Russia, South Africa, China and Japan.

Mr Graff was awarded at OBE in 2013 for services to jewellery.