You can just try it. If you can get the edges to look clean and not fray, I don't see much of a difference between that and the satin ribbon.
Also, I saw this site in the group buy area and they have 3" satin ribbon, not sure if it is the right kind but they do have all the same sizes as standard grosgrain. It's cheap here too. Comes in a 50 yd roll at $0.38 per yd so $19 for 50 yds of 3" satin. ($17.10 if total order is over $200) I might be interested if you'd want to split. http://www.yourorganzabag.com/satinribbon.htm