I agree with using a topstitch needle. Even though you're using the "recommended" needle, the amount of friction on metallic thread may be too much for it to handle. Metallic thread is notoriously
shreddy (and yes I did just make up that word.

)
Topstitch needles have larger eyes and a longer scarf, which protects the thread from friction as it moves in and out of the fabric. If you still have problems with shredding, you might try a larger needle.