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After learning from Keller in Castle Britannia and Giovanni in Britain that Rupert works with unusual materials and could probably make a Blackrock Sword, the Avatar asked the man himself when visiting Trinsic. Rupert felt challenged by it and demanded three pieces of Blackrock and 7000 gold pieces for the work. However, when coming back later, Rupert claimed that it had failed and also refused a refund.
Only after cleansing the Shrine of Honor did Rupert reveal that he'd kept the sword for himself, giving it to the Avatar along with a 2000 gold pieces refund for the trouble he'd given the hero.