I had never heard of silver cloth before now so i had to look it up. It says

Silver cloth is a fabric material used to prevent tarnish on sterling silver and silverplate items while they are in storage. According to the Society of American Silversmiths website, tarnish occurs when sulfur compounds in the atmosphere, principally hydrogen sulfide, chemically react with the silver.

So' I'm not sure if it would prevent rust.(doesn't sound like it though) I've wondered too if just spraying cloth with silicone makes it "Silicone Cloth".