Regardless of your system build (submerged or not) do yourself a favor and get IC Diamond 24 Carat Thermal Compound (they also make a 7 carat version). Read the reviews out there, 3-5 degree celsius temperature drop from using this stuff w/o changing anything else. Oh, and to your point/question, it's made of powdered diamonds, which is non-conductive (yay pure carbon).
Note diamond's 2-5x better thermal conductivity over silver:
http://en.wikipedia.org/wiki/Thermal...imental_values



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