/etc/gemrcwas configured to install gems for root user only. Getting system-wide installation of gems was achieved by commenting out the following line in
Now, instead of getting installed in
/root/.gem/ruby/1.9.1/gems/gems were installed to
/usr/lib/ruby/gems/1.9.1/gems/and were available to all users. Previously installed gems had to be uninstalled and re-installed so that they were available to all users.