Some years back, the owners of the gold jeweler Unoaerre realized that they would have to adapt to survive. Gold had more than tripled in value since the start of this decade, and competition from emerging markets made life increasingly hard for Italian jewelry workshops like Unoaerre, which was founded in 1926 and helped make the city of Arezzo's reputation as one of the top suppliers of the quality gold jewelry. Once No. 1 in gold jewelry production, Italy has in the last few years slipped behind China and India. Turkey, too, is breathing down its neck.

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