The prospect of combining both magnetic and plasmonic properties in one single nanoparticle promises both valuable insights on the properties of such systems from a fundamental point of view as well as numerous possibilities in technological applications. The combination of two of the most prominent metallic candidates, iron and silver, has, however, presented a lot of experimental difficulties because of their thermodynamic properties impeding miscibility or even coalescence. Here we present the thorough characterization of physically prepared Fe50Ag50 nanoparticles embedded in carbon and silica matrices by electron microscopy, optical spectroscopy, magnetometry and synchrotron-based x-ray spectroscopy. Iron and silver segregate completely into structures resembling fried eggs with a nearly spherical, crystallized silver part surrounded by an amorphous structure of iron carbide or oxide, depending on the environment of the particles. Consequently the particles display both plasmonic absorption corresponding to the silver nanospheres in an oxide environment as well as a reduced but measurable magnetic response. The suitability of such nanoparticles for technological applications is discussed in view of their high chemical reactivity with their environment.