I'm sure we have people much more fluent than me on the forum, but I will try to brush off my very rusty memory of Hebrew.
The front says Jerusalem in Hebrew. Probably a souvenir piece of some sort. On the handle appears to be the mark of the manufacturer, would probably be pronounced "Prinzental" or something like that. I'm not familiar with it.
I read the forum, but don't post often. I'm not a fluent speaker, but I can try to help with this. First, the word on the front is indeed 'Jerusalem'. The mark on the underside is also what Dan S thought, the name of a manufacturer. Because it's not voweled, it's hard to know exactly how to pronounce the name. I found a short write up on an Israeli website, the Egozi Gallery: http://www.egozigallery.com/אמן-מספר-1120 I'll try to translate the Hebrew there:
"The Prinzental company was a manufacturer of silver and silver-plate articles, mainly cutlery, which was founded in Warsaw in Poland but moved in its entirety to Israel. The owner of the company was Yizhak [Isaac] Prinzental and it was set up in the Montefiore neighbourhood of Tel Aviv."