Is my antenna faulty?
Your antenna: -

And to make it work in your application circuit, you'll probably need something like 1.5 nF of capacitance in parallel (or series) with it. 1.5 nF and 1.03 mH produces a tuned frequency of around 128 kHz. You would then add a little bit more in parallel with the 1.5 nF to tweak it to 125 kHz operation.
But your inductor doesn't have a data sheet so what I've written is my best (somewhat informed) guess.