It never did.
The blanket with gold thread came from the
Quedagh Merchant.
Here there is few pieces of garment floating around none claim to be part of Avery's treasure.
[KIDD, William (Captain) (1645-1701)]. A PIECE OF THE KIDD BLANKET, a square of green and red striped fabric (4 x 5¾ in.), with floral designs and gold thread. An accompanying manuscript note entitled, "Piece of the Kidd Blanket, Property of Frederick Thompson," explains that "This cloth of gold was given in the year 1697 by the pirate Captain Kidd to Mrs. Elizabeth Gardiner, wife of John Gardiner, the third proprietor of Gardiner's Island. It was captured on the ship "Queda Merchant" by Kidd & was part of the dowry of the Grand Mogul's daughter."below.
Hidden away in Sylvester Manor, a seventeenth-century provisions plantation on Shelter Island, NY, lies a frayed scrap of green and yellow fabric only 4 3/8 x 2 ½ inches in size (fig. 1). Made of silk, cotton, and gilded silver thread, this cloth would have once shimmered in the light. The looping scrawls of a handwritten note give the fragment an abbreviated provenance: “a piece of the ‘Gold Blanket.’” The note asserts that the fabric was “…presented by the Pirate Kidd to Madame Gardiner of Gardiners [sic] Island,” and later “…presented by Mrs. Kimball to Mrs. Horsford, descendants of [illegible] Gardiner.” below.
The East Hampton library has piece in their collection. below
As you see for yourself none of them are attributed to Henry Avery.
But we should point out possible inaccurate claims with the dates given 1699, 1700. 1697. regardless that does not constitute those pieces of cloth are connected to Avery.
John Every (also known as Henry Avery) led a mutiny aboard the privateer warship Charles II on May 7, 1694 The Big Heist: On September 7, 1695, Avery fleet ambushed the Grand Mughal treasure fleet (including the flagship Ganj-i-Sawai) near the Indian coast. Pirate Henry Avery (also known as Henry Every) arrived at the pirate haven of New Providence in the Bahamas around April 1, 1696. source:
Smithsonian Magazine
He assumed an alias, bribed the island's governor (Nicholas Trott), and rested his crew for a short period before fleeing onward to the American colonies by June 1696 to evade an international manhunt. source:
Live science
John Avery (also known as Henry Every) sailed to Ireland on June 20, 1696. He arrived in the north of Ireland aboard the sloop Sea Flower after fleeing the Bahamas and stopping in the American colonies, after which his crew dispersed and his trail went cold.
Source britannica.com
In 1696, Captain Kidd sailed from Plymouth, England, on April 23 aboard the Adventure Galley, arriving in New York City on July 4 to recruit crew members. He then departed New York in September 1696, setting a course for the Cape of Good Hope and the Indian Ocean. Captain Kidd sailed from Deptford (near London) on the ship Adventure Galley on February 27, 1696, stopping at Plymouth before crossing the Atlantic to arrive in New York City on July 4, 1696. From New York, he officially set out for the Indian Ocean on September 6, 1696. Before this 1696 departure,Captain William Kidd first arrived in London in August 1695 to secure royal commissions and gather aristocratic backers and funding for his privateering expedition that was before September 7, 1695, Avery fleet ambushed the Grand Mughal treasure fleet.
britannica.com
As you can see Kidd left the UK on April 23 nearly 2 months before Avery arrived in Ireland June 20. And in 1695 was in different parts of world. In that time period to positively identify any chance meeting next to none.
So the chances of Avery and Kidd colluding as claimed is very slim if not impossible. Avery before May 7, 1694 was not a captain so any colluding beforehand before the events that even took place is sheer speculation. plus In 1695 maritime society, captains and crew did not mix in the same social circles. A strict hierarchy separated them. Captains belonged to the privileged or merchant class, dining at the "captain's table", whereas ordinary crewmen were from the working or lower classes. So any colusion did not exist before Avery became a pirate or captain and afterwards he was never in same part of the world to meet. Even if he did capturing Avery would of made Kidd famous.
So any claim that Kidd and Avery colluded is a flight of wishful thinking and flight of fantasy.
Crow