A molding apparatus for making a cutting tool includes a cylindrically shaped elastic bag having an internal cavity for receiving a granulated material, such as a mixture of cobalt and carbide. The profile of the interior cavity substantially corresponds to the shape of the cutting tool being produced. The ends of the bag are open to provide access to the interior cavity of the bag. A substantially rigid tubular-shaped pressure sleeve encloses an outer circumference of the elastic bag. A pair of end caps operate to seal the open ends of the elastic bag and are engageable with the ends of the pressure sleeve. The granulated material can be formed into a solid coherent structure by placing the assembled mold containing the granulated material into a hydrostatic press for applying a substantially uniform compressive load to the outer periphery of the elastic bag.