Oldblock - What that MSDS tells me is that there could be as little as 6.01% ethanol content and as much as 20% other additives (Water, methanol, colour and taste). I suppose you could say it's <> correct. However, no matter which way I look at it, it still doesn't quite add up. Maybe I'm missing something. I still say, don't believe everything you read in all MSDS's.
In many instances an MSDS is a sketch of the product used as a guideline, of how to safely handle the goods, emergency procedures, toxicity levels, etc. They are not a complete breakdown of the products structure. This is why that MSDS is so open with its percentages. It is not a true reflection of 100% IMS. Which as a rule (in Australia) is 97.9 - 99.92% pure alcohol depending upon the supplier.
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Water in Methylated Spirits can cause big problems when it comes to mixing down your shellac. Sometimes as little as 5% can retard or even stop the melting process of the shellac flakes. In the hundreds of classes we ran over many years we never had a problem dissolving shellac in the pure stuff, however if a student decided to bring their own (not pure) metho, there would almost always be a problem.
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Moisture drawn into the polish (from humidity etc) whilst working isn't really a major problem and can be overcome pretty easily as Bob said. However moisture that is trapped deep in the finish under many layers can cause a problem down the track. Especially when it is on raw timber.
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Coating boldo (called bole in Australia) isn't too much of a worry as it usually isn't as apparent, because as Marc said it is used as a base for a varnish or glue prior to applying the gold leaf. Often there is enough moisture still in the gesso and bole to cause the shellac to bloom even if there isn't any water in the metho.
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In the end, it all boils down to what you want from your work. If you are striving for excellence, you won't get it using second rate materials. If you are happy with second best then so be it. There are no hard and fast rules. What I try to do is give you the best solution to a problems as I see it. What you choose do with that information is purely up to you.
Hope this is of some help to someone. If not .................... Oh well.
Cheers - Neil :D
PS Marc In australia it is virtually impossible to purchase ethanol that is not denatured. Just about takes an act of parliment, you can only buy a small quantity and every drop has to be accounted for. They don't want anyone to make their drinks out of the stuff and not pay the piper.