Pencil is a new stylus by 53, who is also responsible for the wildly popular iPad sketching app,Paper. The body of Pencil is made from harvested wood and is available in both graphite and maple. The other end of Pencil features an eraser tip.
Since Pencil is made to work with the Paper app, some features such as palm rejection, erase, and blend will only work inside it. You can, of course, use Pencil with other apps as a normal stylus.