Lady Di's Racy Dress Fetches $276,000

A racy black gown worn by Lady Diana Spencer on one of her first official engagements has been snapped up by a Chilean fashion museum for more than $276,000—several times the original estimate. The strapless silk taffeta dress's revealing cut and striking black color caused a minor scandal when Diana was pictured stepping out of a limousine in the outfit in at a London charity event in 1981, but it helped turn the 19-year-old royal bride-to-be into an overnight fashion icon.

"I think Diana didn't really have a particular sense of style, I mean, she dressed as a typical 'Sloane Ranger' of that time, you know, with the skirts, cardigan, little sweater, pearls, it was kind of a uniform for girls of that age," said Elizabeth Emanuel, who designed the black dress with her then-husband, David. Chile's Museo de la Moda paid $276,500, and the Emanuels were the sellers. (More Lady Di stories.)