In the more recent games, there are NPCs that you can talk to and they will tell you what type of Hidden Power your Pokémon has. According to Bulbapedia, the locations of the NPCs are:
- Platinum: Veilstone Game Corner
- Heart Gold/Soul Silver: Celadon Game Corner
- Black/White: Mistralton City
- XY: Anistar City
- South-Eastern-most house
- Also the location of the Hidden Power TM.
- Omega Ruby/Alpha Sapphire: Fortree City
- Top row of houses, second from the left.
- Also the location of the Hidden Power TM
If you want to find out through combat, here's something I threw together (Disclaimer: there's likely a much more efficient way to figure it out):
1. Battle a Patrat / Lillipup.
Super effective: Fighting. Didn't affect: Ghost. Normal effectiveness: goto 2
2. Battle a Cottonee / Petilil.
Super effective: goto 3. Not very effective: goto 4. Normal effectiveness: goto 5.
3. Battle a Klink.
Super effective: Fire. Not very effective: goto 6. Didn't affect: Poison.
4. Battle a Roggenrola.
Super effective: goto 7. Normal effectiveness: Electric.
5. Battle a Sewaddle.
Super effective: Rock. Normal effectiveness: goto 8.
6. Battle a Woobat.
Super effective: goto 9. Normal effectiveness: goto 10.
7. Battle a Ducklett.
Normal effectiveness: Grass. Not very effective: Water. Didn't affect: Ground.
8. Battle a Sandile.
Normal effectiveness: goto 11. Not very effective: Dark. Didn't affect: Psychic.
9. Battle a Ferroseed.
Normal effectiveness: Ice. Not very effective: goto 12.
10. Battle a Timburr.
Super effective: Flying. Normal effectiveness: goto 13. Not very effective: Bug.
11. Battle a Darumaka.
Normal effectiveness: goto 14. Not very effective: Steel.
12. Battle a Drilbur.
Normal effectiveness: Dark. Not very effective: Rock.
13. Battle a Trubbish.
Normal effectiveness: goto 15. Not very effective: Poison.
14. Battle a Deino.
Super effective: Dragon. Normal effectiveness: Normal. Not very effective: Dark. Didn't affect: Psychic.
15. Battle a Blitzle.
Normal effectiveness: Dragon. Not very effective: Steel.
My thought process (possible types at each stage) is in the revision history of this answer.
Best Answer
Type gems are more commonly seen in battles in the Battle Whatever or against other people, where used items are returned at the end of the match. They're a lot more useful when they're once per battle rather than once ever.
In this case, they are used for when you really need one move to deal a lot of damage (often to one-shot something annoying). They actually combo quite nicely with the Leaf Storm style moves- you can up the already massive damage of that one attack.