Hi Shane,
Welcome to the Forum! Thanks for posting this interesting knife.
I think this one is likely Asian/SE Asian in origin. The inlaid decoration on the spine of the blade is reminiscent of designs found widely in SE Asia. I've tried to match the letters on the blade to various SE Asian alphabets, but all I can say is that it is not standard Thai, Burmese, or Cambodian (Khmer). One or two of the characters have somewhat of a resemblance to Chu Nom, an old Vietnamese alphabet.
It's possible your knife comes from one of the French Indo-Chinese colonies. I say this because the fluted ivory handle scales are similar to scales seen on some French daggers of the 19th C. Italian styles were similar for some of the "vendetta" knives also.
Another possibility is southern China, notably Yunnan Province.
As to what it was used for, if I am correct about the SE Asian origin of this knife, then I think it was likely an opium knife used for scouring opium pods to extract the latex. There are some fancy opium knives around, and I have seen some with ivory scales.
Opium knives are not something I collect, so I don't have an item to show that look similar. Perhaps some of our fellow forumites have one.
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