The ultimate Hanukkah gift: The world's most expensive yarmulke

A celebrity designer has created the world's most precious skullcap, encrusted with more than 3,500 Swarovski crystals and topped with a two carat diamond, just in time for Hanukkah, the Jewish festival of lights this year lasting from 12 to 20 December.

A skullcap, a kippah in Hebrew or yarmulke in Yiddish, is a sign of devoutness by Jewish men who cover their heads, some only while praying or attending religious events, others all the time. But designer Toks Daniel has made it into a sign of luxury.

His unique skullcap took 14 days to conceive and create, with each of the thousands of crystals painstakingly placed in a pre-ordained position. Daniel, who creates many crystal and diamond pieces for celebrities such as a crystal encrusted football boot for Cristiano Ronaldo, was inspired to make the unusually luxurious skullcap - his first religious piece - due to his interest in the Jewish faith and rituals.

Daniel said: "Whilst I was a youngster in Nigeria, Jews had a rather exotic image. The more I have since been exposed to Jews and Judaism, the more I have become enamoured with its rituals, principles and aesthetics. My yarmulke design is a manifestation of my enchantment with the religion."

He collaborated with Hatton Garden-based jeweller Robert Goodman who supplied the solitaire cut diamond, the "pièce de résistance," placed atop the Star of David at the skullcap's summit. The diamond is conflict-free, from the Mir Mine in eastern Russia.

The skullcap is on sale for a whopping £125,000 ($167,000), although anyone who is attracted by the Swarovski crystals but can take or leave the diamond can purchase it without for just £7,000 ($9,300). It will cost even more for delivery outside the UK.

If the skullcap is purchased, a £1,000 ($1,330) donation will be made to Chabad Lubavitch of Nigeria, which provides for the spiritual welfare of the country's Jewish community while promoting respect and diversity.

Marcel Knobil, founder of VeryFirstTo which is selling the skullcap, described it as "simultaneously a spectacular item of headwear and a scintillating work of art". "However, we can't guarantee that it enhances the likelihood of ones prayers being answered!" he joked.