Swiss firm Hublot unveils $5m diamond watch

A Swiss watchmaker has put on display one of the most expensive watches in the world - worth $5m (£3m).

The white gold timepiece is encrusted with 1,282 diamonds, and will be shown to a small number of people at a corporate event in Basel.

It was created by Swiss firm Hublot and took 17 people 14 months to make, according to the AFP news agency.

A "mastersetter" from New York had to be flown in to fashion the largest diamonds, the watchmaker said.

Analysts say despite the economic downturn in Europe Swiss watchmakers have done well this year, driven by demand in Asia.

"We profit off the general growth of the economy in the region," Jean-Daniel Pasche, president of the Swiss Watch Industry, told AFP.

"There are many people who have the means to acquire a Swiss watch - they find our products very attractive."