The lettering is difficult to photograph or view with the naked eye, but with a magnifying glass, the legend is clear. This type of advertising give away was a common advertising practice in the 1890's. Some years ago, I had a similar letter opener on which the figure of a naked woman served as the handle. Oh well, live and learn. No chips or cracks.
Gold paint is worn as can be seen in pictures.
A great collectors item. Click here for a view of the back of the lighter and the top of the lighter element. It is operated by picking up the lighter and tilting it on a slight angle. Apparently there is a contact ball that causes the element to heat up when it makes contact with any side of the element case. I would recommend that it also be unplugged when not being used.