This is a mass-produced Chinese sword from the lower end of the market, used for amateur tameshigiri (although I'd recommend against it, since swords like this have mass-produced, one-size-fits-all tsukas) or for people who just want to swing around or display something that looks like a samurai sword. This particular model is called the Ryumon Dragon Katana, and it retails for around the US$300 mark, less if second-hand. Information on this sword is plentiful on the Internet and a Google search on it should tell you everything you need to know about this sword being "very old" or "an original."
I would not say this is a fake or a reproduction - it does not even pretend to be Japanese or a sword made by a Japanese smith, as the product logo is clearly visible on the box and on the Internet where one can find these for sale. I believe the common term for these, as used over on websites like Sword Forum International and the Sword Buyer's Guide, is "production blade," and a lower end one at that. I've heard of people who use these as decoys, so when thieves break into their house the gaudy production blade gets stolen while the treasures in plain shirasaya get ignored :lol:
As others have mentioned, the box is probably the nicest thing about this sword, although I can confirm that the inlay is not silk but rather some kind of satin-esque material. I have in fact purchased one of these boxes (sans sword) from a garage sale and used it to store a real nihonto when moving house - it was far cheaper than a gun safe or even a proper Japanese sword box.
-- Rohan G