GCR - That knife is certainly a classic design of the old west era. I particularly like the scabbard's seam facing out and not behind which I've seen on period knives in some of my reference material. So the knife would be a good fit unless the details of how it is marked betray the antique dealer's claims. It is priced within a range that is typical of that sort of knife these days as such are quite collectible.
On that note, I could kick myself for the rest of eternity as a couple years back at an antique store I passed up a Tiffany marked, very fancy, very nice condition side knife without a sheath for $400. In hindsight that knife was not overpriced, especially considering its provenance. C'est la vie. However, unless you're a collector of such originals you can procure good repros to use and beat-up for much, much less than a comparable original and not feel too bad about it.
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