If I can be cynical, here's my take:
The "blade" appears to be some form of Manjusri's flaming sword of wisdom (khadga/prajnakhadga/ye-shes ral-gri). That part may indeed be 200 years old, and who knows where it was found. You can see the remnants of the flame all around the tip. It was then mounted in a deer antler at some point. Whether the person who mounted it meant to make it more useful as a ritual item, or whether it was meant as an, ahem, art piece for those who travel, is something I'm not sure about.
My 0.0000002 cents,
F
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