bundle install fails with SSL certificate verification error

When I run bundle install for my Rails 3 project on Centos 5.5 it fails with an error:

Gem::RemoteFetcher::FetchError: SSL_connect returned=1 errno=0 state=SSLv3 
read server certificate B: certificate verify failed 
(https://bb-m.rubygems.org/gems/multi_json-1.3.2.gem)
An error occured while installing multi_json (1.3.2), and Bundler cannot continue.
Make sure that `gem install multi_json -v '1.3.2'` succeeds before bundling.

When I try to install the gem manually (by gem install multi_json -v '1.3.2') it works. The same problem occurs with several other gems. I use RVM (1.12.3), ruby 1.9.2, bundler 1.1.3.

How to fix it?

Update

Now that I've karma wh..err mined enough from this answer everyone should know that this should have been fixed.

re: via Ownatik again bundle install fails with SSL certificate verification error

gem update --system

My answer is still correct and left below for reference if that ends up not working for you.

Honestly the best temporary solution is to

[...] use the non-ssl version of rubygems in your gemfile as a temporary workaround.

via user Ownatik

what they mean is at the top of the Gemfile in your rails application directory change

source 'https://rubygems.org'

to

source 'http://rubygems.org'

note that the second version is http instead of https

Replace the ssl gem source with non-ssl as a temp solution:

• gem sources -r https://rubygems.org/
• gem sources -a http://rubygems.org/

The reason is old rubygems. You need to update system part using non ssl source first:

gem update --system --source http://rubygems.org/ (temporarily updating system part using non-ssl connection).

Now you're ready to use gem update.

If you're on a mac and use a recent version of RVM (~1.20), the following command worked for me.

rvm osx-ssl-certs update