Hi Tracey. You have a love token. From LoveTokenSociety.com: Through the years lovers have chosen a variety of different trinkets and charms as 'tokens of love' to express their love or affection to someone special in their lives. Some of the more popular were thimbles, pin cushions, rings, and carved spoons. During the victorian period the ever popular valentine card was introduced. This period also marked the peak of popularity for using engraved coins as love tokens.
Love Tokens such as the examples above are coins that were taken from circulation and engraved with something special on them. They are referred to as love tokens because most were made for a special occasion and presented to the receiver as a gesture of love and / or affection. They were most popular here in the United States during the period commencing shortly after the civil war until the early 1890's.
As to value, genuine, old love tokens usually sell for $10 to $100 US dollars retail, depending on the state of preservation and the complexity and beauty of the carved pattern. A dazzling original in gold may fetch $200. A modern (post 1950) carving might sell for $5. If you have a love token for sale, figure that a dealer would pay roughly one-half a retail price. If you go to eBay and do a search on 'love token,' you will see several hundred examples. The Love Token Society web site has pictures of many beautiful specimens with full explanations.