This article describes coating of magnetite nanoparticles (NPs) with amorphous silica shells. Controlled co-precipitation technique under N 2 gas was used to prevent undesirable critical oxidation of Fe 2þ . The synthesised Fe 3 O 4 NPs were first coated with trisodium citrate to achieve solution stability and then covered by SiO 2 layer using Stober method. For uncoated Fe 3 O 4 NPs, the results showed an octahedral geometry with saturation magnetisation range of 82-96 emu/g and coercivity of 85-120 Oe for particles between 35 and 96 nm, respectively. The best value of specific surface area (41 m 2 /g) for Fe 3 O 4 alone was obtained at 0.9 M NaOH at 750 rpm and it increased to about 81 m 2 /g for Fe 3 O 4 /SiO 2 combination. The total thickness and the structure of core-shell was measured and studied by transmission electron microscopy. The average particles size was about 50 nm, indicating the presence of about 15 nm SiO 2 layer. Finally, the stable magnetic fluid contained well-dispersed magnetite-silica nanocomposites which showed monodispersity and fast magnetic response.