La Iluion by Juan Tamariz

Another impossible effect from the master! 

A deck of cards is shuffled, and a card is selected by the spectator in the fairest possible way. The card is shown to the audience and placed back into the deck. The card is lost. The magician now cuts the cards until the spectator says stop. He turns the deck over to show they have found the card... but it is the wrong card -- the 2 of Diamonds. The magician cleanly turns the 2 of Diamonds into the 3 of Diamonds -- the selected card!