This has seriously been bugging me. I even posted this to prove it.

I’ve been wondering why this never worked:

 % bundle config path ~/.bundle
 % bundle config
Settings are listed in order of priority. The top value will be used.
path
Set for the current user (/Users/pegas/.bundle/config): "/Users/pegas/.bundle"

Yet still every time I would try to install gems with bundle install, they will inevitably end up in the system gem directory.

Well, after wiping out a bunch of rvm rubies and then installing them back again, I decided to Google up and found this guy:

 % bundle config path.system false
 % bundle config
Settings are listed in order of priority. The top value will be used.
path
Set for the current user (/Users/pegas/.bundle/config): "/Users/pegas/.bundle"

path.system
Set for the current user (/Users/pegas/.bundle/config): false

And voila!

Now every time I run bundle install, it auto-magically works!