I suspect you are talking about a rouge cloth, although I'm not familiar with the tradename you mention. Jewlers rouge is actually a mild abrasive, ferric oxide, with which the cloth is impregnated. Like any abrasive polish, it will remove oxidation from metals, in some cases quite effectively. Also like other polishing materials, it is not recommended for use on gold razors which have a very thin gold plating and then a protective coat of lacquer to protect the soft gold plating from wearing off.
I found a website that sells Fabuluster in the form of a white bar to be used with a cloth or a chamois polishing wheel.
Here is the description given . . . "Fabuluster White 1 LB bar. A soft polishing compound formulated for working on plastics, fiberglass or soft metals. Very adaptable for use with flannel or chamois wheels."
Apparently, what you have seen is a cloth with this material on it, so this could be quite different than a rouge cloth, or it may have similar usage characteristics. Again, I wouldn't use any polishing abrasive on gold razors.
The razor pictured is a silver plated speciman. Silver will turn almost black with oxidation in time . . . yours was close to that state. The oxidation will come off rather easily with polish. I would suggest using a mild polish and hand polishing the razor just enough to eliminate all of the oxidation and to bring out the beauty of the silver. Remember, that oxidation was a portion of the silver plating . . . the more it is polished, the thinner the plating that remains on the razor. I would discourage using a dremel tool or any other mechanical polishing method, especially on silver. Silver is very soft and will be removed quite rapidly with a polishing wheel.