JayCee,

I have a damascus knife that was made by a custom knife maker out west who on his website gives a good description of how he makes his damascus blades. This excerpt from his site confirms that you are on the right track, although this is all done to the blade before the handle work starts:

"After grinding the sides and handle section, it is polished. After the initial polishing it is hardened at the forge, repolished, tempered and polished again. Next it is acid etched in hydrochloric acid. The acid eats away at the different steels at a different rate so that a one of a kind pattern is visible on the blade. After rinsing, the blade is coated with a brass black solution (like gun bluing) then polished with a worn 600 grit sandpaper. This highlights the raised portions of the steel pattern and leaves the recessed layers dark so that a beautiful contrast is achieved."

Now you can give it a try on your knife.

Dave