I'm fairly certain we've had this discussion before, but I don't remember which thread it was...
Anyhow... The reason the damascus steel is so incredibly hard is because of the carbon nano-tubes in the material, combined with traces of other elements. It's theorized that the ore that was originally used to create damascus steel was a variation of the ore used to create wootz steel. Once the mine containing that particular ore went dry, the materials needed to create damascus steel was no longer available, thus the knowledge was deemed worthless and forgotten.
The steel was most likely created using pattern welding techniques, which is quite comon in a lot of cultures when making weapons and edged tools (swords and knives for instance), which is why damascus blades are similar in apearence to a lot of different types of steel. Nailing the elements needed for the creation of damascus steel isn't the problem, but the knowledge and craftmansship is. The inhomogenous nature of it makes it even harder to even begin guessing at the specific methods involved in damascus steel creation, apart from pattern welding, and the carbon nano-structures in the material still puzzles the experts.
As in all forms of craftmansship, some things cannot be calculated and/or reverse engineered. You need the actual knowledge and experience of the blacksmith capable of creating it. The creation of a japanese sword isn't somthing taught overnight and is also something that has evolved over hundreds of years (not talking about the standard "real" swords that cost about $4 000 - $10 000, but the custombuilt swords made by a master swordsmith to your personal preference) and it's fairly reasonable to asume that damascus steel follows the same rule. Thus someone would need to redescover the knowledge or invent a new way to create it.
My conclusion: Don't believe something is damascus steel just because the seller says it is. It may be similar in apearence and patterwelded blades are famous for being hard, sharp and somewhat flexible at the same time (the most extreme being japanese swords which are somewhat like a whip because of the special way to temper the blade and give each part of it different properties). Damascus steel was famous for being strong, tough, flexible and incredibly hard. Generally speaking it is hard to create a blade which has all of those characteristics without sacrificing one to maintain another, hence the japanese way to give different parts of the blade different characteristics.
I still long for the day when someone actually rediscovers how to create damascus steel. Maybe I'll have a sword made that day...
Anyway, enough ranting... After that wall of text I'll probably be silent for a while...
You can die anytime, it is living that takes courage...