Hi Phil,
VÖLKEL here from Germany.
We came across your post and had our technical team take a closer look at what you described. Thanks for providing so much detail, as that makes it much easier to assess what may be happening.
A few things stand out to us.
First, the die you are using is primarily intended for manual thread cutting. Regardless of the material being machined, this type of die is not designed for machine use. As you are cutting the thread on a lathe, a gun-nosed die made specifically for machine use would normally be the better choice, especially on a longer thread, as it directs the chips forwards rather than allowing them to collect in the chip holes.
The starting diameter of the plain bolt is also worth looking at. You mentioned turning the blank to 5.48 mm, which is the nominal diameter of the thread. For actually cutting the external thread, however, we would recommend starting slightly below this. For #12-28 UNF, around 5.38 mm maximum would be our recommendation.
That may also explain the slightly torn appearance at the thread crests in your photo. Starting at the full nominal diameter means the die has to cut right into the very tips of the thread profile, which can make the result less clean, particularly in tougher materials.
The 5.35 mm diameter you measured after cutting the thread is not necessarily a problem either. It is within the normal tolerance range for a #12-28 UNF external thread, so that measurement alone would not suggest that the die is cutting undersize.
One thing we would be interested to know is the exact material you used. You mentioned “silver steel”. Do you know the exact grade or specification? The term can refer to alloyed tool steels, depending on the grade containing elements such as chromium and sometimes vanadium. While there are certainly materials that are more difficult to machine, this die is optimised for manual use in unalloyed to low-alloy steels and can reach its limits with more demanding materials. Using it outside its recommended material range also increases the risk of tool damage.
Also, trying the die on an existing commercial thread is not always a reliable way of checking it. Both the thread and the die have their own manufacturing tolerances, so one die may remove a little material from an existing thread while another may hardly touch it.
We made a short video about exactly this point if it is of interest:
https://youtu.be/0IO_roY3aAI
If you can let us know the exact grade of the silver steel and, ideally, the article number or marking on the die, we’ll be happy to look into it a little further.
Best regards from Germany,
VÖLKEL Threading Solutions