Battara,
I do answer late on this one - sorry, but here I am :-).

The dagger with 'kundan' shown, is an example of how they sometimes tried to fool buyers. The original gold/gems have been stripped off, and likely sold for scrap value.
What you then do is, to take some coloured metal foil and glue it where the gems have been. then you take some glass/crystal pieces of the right size, place them on the foil, take some soft metal, in this case lead and hammer it around the 'gem', and at last you take a very thing gold foil and cover the lead. In the end you have an 'almost kundan' decorated dagger hilt.

Thank you Jens. It would appear that even the forger's art takes skill!