These have a very special place in my heart!
Iced Gems were tiny round biscuits (tiny, maybe 2cm diameter) with a swirl of hard icing on top. They tasted very good. The icing was many different colours.
My Grandparents used to bring them around every week (probably because they only cost 10p a packet) but they were delicious.
Amazingly they were first made over 150 years ago - in Reading! Though in their more familiar incarnation came about when in the 1970s Huntley and Palmer, Peek Frean and Jacobs joined to form Associated Biscuits.
There were many different ways of eating these tasty treats. Go for the icing first, or the biscuit, or both together. I preferred both together, they would melt in your mouth quite nicely. In fact I remember them being quite hard if you just tried to chew your way through a whole packet!