gistfile1.txt

$ bundle --version
Bundler version 1.2.3

$ mkdir Øystein

$ cd Øystein

$ mkdir lib

$ bundle gem helpers
      create  helpers/Gemfile
      create  helpers/Rakefile
      create  helpers/LICENSE.txt
      create  helpers/README.md
      create  helpers/.gitignore
      create  helpers/helpers.gemspec
      create  helpers/lib/helpers.rb
      create  helpers/lib/helpers/version.rb
Initializating git repo in /Users/mscottford/src/bundler/testcases/i926/Øystein/helpers

$ cd lib

$ cat Gemfile
source :rubygems

gem "helpers", :path => File.expand_path("../helpers")

$ bundle install
Fetching gem metadata from http://rubygems.org/..
Using helpers (0.0.1) from source at /Users/mscottford/src/bundler/testcases/i926/Øystein/helpers 
Using bundler (1.2.3) 
Your bundle is complete! Use `bundle show [gemname]` to see where a bundled gem is installed.