I wouldn't judge based on dyed coral; the practice of dying coral goes way back. Tibetans, far from the sea, were naturally importing it and even by the turn of the twentieth century, they were getting, indirectly, coral dyed in Italy, I believe.
But overall condition is something to attend to. Because coral and turquoise were so prized and reusable for all sorts of decoration (swords, rings, headdresses, necklaces, saddles, etc.) I find that authentic old swords probably usually have the stones removed, as they were a portable bit of wealth that one need not give up when parting with a blade.
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