Colonial? - Coin Or Token?

It is neither coin nor token. "5 dwt 6 gr" is a weight. 5 pennyweight 6 grains troy was the official weight of a British gold guinea, so this object is a "coin weight" for a guinea. It would be used with a specially designed coin balance to quickly test the authenticity and legality of a gold coin.

Coin weights are still quite collectable historic artefacts in their own right, offering a glimpse into the reality of a bygone era when gold coins actually circulated and people needed to be far more vigilant than today of accepting a counterfeit. Though determining the value of coin weights is more hit-and-miss since they're not listed in the mainstream coin catalogues.

As a general rule, if a maker's name or mark is clearly readable that can tie the piece down to a specific time and place, it's worth more than a "generic" weight of unknown origin. I can see a little counterstamp in the middle of the reverse of your piece (it looks like a little teapot), but I suspect it was actually placed there by the weight's original owner, rather than the manufacturer. All the ones I see in ebay right now seem to be asking in the $30 to $60 range.