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If the holder uses a damage-dealing Ghost-type move, then the holder consumes this item and the power of that move is increased by 50%. One-time use.
In single battles, Ghost Gem is not typically a useful item, unfortunately. While the one-time boost to Ghost-type attacks is nice, most Pokemon using Ghost-type attacks would rather have the more reliable power of Life Orb or Choice items.
Typically Gems are more valuable in the VGC and similar environments, and Ghost Gem is sometimes used here to boost the power of Ghost-type attacks such as Shadow Ball from Pokemon such as Gengar. The one-time power boost can come in very useful in such a fast-paced metagame, especially as it comes without any drawbacks.
Occur randomly in Dust Clouds.