DG. you grind a small chisel 90 degrees with a 50 degree face and a 20 degree lift. Cut the grooved wide enough with that chisel. Grind another chisel that is approx. .010 of an inch wide. Put a touch of 70 degree face on it with no lift. Then use that chisel to dovetail the groove ever .010 wide all the way around on both sides, hammer the gold wire into the dovetail. Lightly polish the tops.
If you do not dovetail it then it will come out during use. If you do dovetail it is fine. Here at the Micro show two years ago we took one that had deep relief engraving and gold wire and best the engraving on a pine 2x4 to let them know it would hold up. We then hung a piece of one inch rope up by a thread. We used that Damascus knife and cut the rope and did not break the thread.
My knives work. They work well. I see no point in carrying a knife that does not cut well so I make them the way that I want them to work in the field. The pretty comes later. If you are buying always ask the maker do they dovetail their gold in, some do not and I can tell you, they will not work if you do not.

Come by the DSC show. GRS is set up doing engraving demos. they will let you put your hands on the engraver and try it out yourself. You will not be able to do gold wire but they can get your feet wet with the basics and tell you even more.