As a yearling in October 2002, the filly was consigned to the Tattersalls sale and was bought for 600,000 guineas by the bloodstock agent Dermot "Demi" O'Byrne[2] on behalf John Magnier's Coolmore Stud organisation.
[3] Necklace's dam Spinning the Yarn showed noracing ability, finishing seventh in her only race[4] but was a daughter of the Irish Oaks winner Colorspin, making her a half-sister to Opera House and Kayf Tara.
She was made the 3/1 favourite but despite recovering from a poor start she failed to overhaul the Jim Bolger-trained Soviet Belle and was beaten three quarters of a length into second place.
Kinane restrained the filly in the early stages as her stablemate Oh So Precious set the pace before giving way to the Clive Brittain-trained Menhoubah approaching the last quarter mile.
On 4 June the filly was moved up in distance for the 225th Epsom Oaks over one and a half miles in which she finished fourth behind Ouija Board, All Too Beautiful and Punctilious.
In August she started a 25/1 outsider for the Beverly D. Stakes at Arlington Park and finished strongly to take third place, beaten half a length and a head by Crimson Palace and Riskaverse.
At Belmont Park in September she started second favourite for the Garden City Breeders' Cup Handicap but finished fourth of the seven runners behind Lucifer's Stone.