A heterogeneous medium consisting of randomly oriented silver nanorods embedded in Co0.05Ti0.95O2 (CTO) matrix was prepared using the sol–gel method. In this work, negative permittivity properties and magnetic behavior of composites with different contents of Ag nanorods embedded in Co0.05Ti0.95O2 matrix are investigated. The impedance analyses indicate that with increasing Ag content (~35%) the composite shows an inductive behavior and the permittivity spectra show negative values, which is called electrically negative metamaterial. The silver networks possess diamagnetic behaviors due to Eddy current that is combined with the magnetic behavior of Co0.05Ti0.95O2 matrix. The permeability spectra of the composites reveal that the permeability of these samples decreases continuously with the increase in frequency. Additionally, the permeability spectra show negative susceptibility in the sample with high Ag content (35%) at high frequency.