no such file to load — rubygems (LoadError)

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I have a hunch that you have two ruby versions. Please paste the output of following command:

$ which -a ruby

updated regarding to the comment:

Nuke one version and leave only one. I had same problem with two versions looking at different locations for gems. Had me going crazy for few weeks. Put up a bounty here at SO got me same answer I’m giving to you.

All I did was nuke one installation of ruby and left the one managable via ports. I’d suggest doing this:

  1. Remove ruby version installed via ports (yum or whatever package manager).
  2. Remove ruby version that came with OS (hardcore rm by hand).
  3. Install ruby version from ports with different prefix (/usr instead of /usr/local)
  4. Reinstall rubygems

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