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"Can I transfer my Steam Gems and Booster Packs?
Yes, these are Steam Inventory items that are transferable in the normal ways: trading or selling on the Steam Community Market. Steam Gems can only be placed on the Community Market after being packed up into a Sack of Gems."
Well, it looks like the exact same FAQ as yesterday, so I'd be willing to guess that Steam just failed to update the FAQ. During the last Winter Event they used the FAQ from the previous year that had the wrong minimum level for recieving cards for voting. It's been known to happen.
EDIT: oh, I take it back. I guess I could buy other people's dross and convert that to gems. Doesn't sound like much fun, though.
You can turn them into Booster packs which you can sell for wallet funds, if you wish.
It keeps the bids on the reasonable level to limite getting gems by trading, playing more games (to get cards) and making badges (to get more itens).
Even if you don´t have enough to be the top bidder on the first round, put all the gems on the game you would like to receive and check which position you are on the auction; this way you can have an idea of if it´s possible to win in the future or don´t. You only need to keep in the first 100 positions (and believe me, it´s not that hard even for games that have plus than 10k as top bidder).
Craft more.
Actually the Sack of Gems listing is still on the market, despite being broken. We still have the option to make Sack of Gems (which seems stupid if it should be untradable, right?) and there's lots of change in the text posted on the Auction page.