Its paint, I think that it was only the first bikes that were not paint 98- 99 -2000 at latest.
My 98 is polished alloy, sort of a soft brushed look and then lacquer on top, which when chipped gets water on it and turns the edge of the chip hole white which tracks under the lacquer, which looks more of a mess than chipped paint.
Here is a picture of mine, if I was bothered I would do something about it but I think I would still do them the same