The silica coated $Fe_3O_4$ nanoparticles have been synthesized using a micro-emulsion method. The $Fe_3O_4$ nanoparticles with the sizes 6 nm in diameter were synthesized by thermal decomposition method. Hydrophobic $Fe_3O_4$ nanoparticles were coated silica using surfactant and tetraethyl orthosilicated (TEOS) as a $SiO_2$ precursor. Shell thickness of silica coated $Fe_3O_4$ can be controlled (11~20 nm) through our synthetic conditions. The $Fe_3O_4$ and silica coated $Fe_3O_4$ nano powders were characterized by transmission electron microscopy (TEM), x-ray diffraction (XRD) and vortex magnetic separation (VMS).