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You need 5pages+Crafting materials in order to lv up the blacksmith so that you can craft higher lv equipment. I'm at lv4 and I can craft lv24+ items
You can take the Blacksmith in Beta up to level 4.8 (Level 5 requires Nightmare materials). He will have several Level 20+ items by then (You pretty much have all <13 items after level 2) and its moot point to take higher unless you just want to see what kind of affixes you can get on items.
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