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A size-tunable core-shell nanoparticles is fabricated in which an Ag core is surrounded by a magnetic Fe3O4 shell. Quenching of the Ag surface plasmon is observed in the UV/Visible spectrum of Ag@Fe3O4. On the other hand, clear absorption peak appears on the mixture of pure Ag and Fe3O4 nanoparticles, implying that the Fe3O4 shell indeed changes the surface absorption. The TEM images reconfirmed the core-shell structure with the average core diameter of 10 nm and the width of 2 nm at room temperature. The nanoparticles are superparamagnetic at room temperature and may be suitable for biomedical application.