When making printed circuits, the "etch resist" is basically paint. The etching solution is formulated to attack metal, usually copper, but it likes brass as well, but paint isn't metal, so is let alone by the etch solution. The result being a lower surface where the paint (resist) wasn't.
Whatever Letraset is made of might have the required properties.
As long as the surface is lowered by more than the thickness of a coat of paint, painting and abrading the surface should, in theory, leave brass letters on a coloured background.
I have usually cheated by making a vinyl sticker using a colour laser printer, but then, I keep my standards in check.