Permission denied: gem install bundler

All of a sudden we started getting ‘Permission denied’ trying to run gem install bunder

#!/bin/bash -eo pipefail
gem install bundler
Fetching: bundler-1.16.0.gem (100%)
ERROR: While executing gem … (Errno::EACCES)
Permission denied @ rb_sysopen - /usr/local/bundle/cache/bundler-1.16.0.gem
Exited with code 1

I prefer NOT to add sudo to gem. Is there any other reason / fix that can help us?

Thanks in advance.

See also: Error with installing bundler