Andy
I anneal the wire just before I place it into the cavity or channel by heating with a butane lighter while holding the wire with tweezers. It doesn't take long for the gold to get hot, then I let it air cool. It seems like the slower the cooling the softer the gold will be. I am usually working with wire about 0.017 and length up to 3 inches. Once you start to set the gold in the cavity by means of a punch or set tool the gold will start to harden back up. My set tool is 1/8" brass rod, long enough so I don't hit my fingers with the hammer. If someone else has a better method I'd be happy to learn about it. Until then I hope this helps you.
Mike
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