Fabrication, characterization, and optical enhancement applications of bimetallic AgAu nanoparticles and nanoshells are reported. Nanoparticles with tunable surface plasmon resonances are synthesized at room temperature and characterized by transmission electron microscopy, X-ray photoelectron spectroscopy, and photon correlation spectroscopy. The collective electron oscillation of the nanoparticles shows a controllable tunability in the 400-990 nm spectral range, in agreement with plasmon absorption calculated using Mie theory, providing an optimum substrate for surface plasmon-assisted enhanced spectroscopy. Surface-enhanced Raman scattering experiments show that the average enhancement factor obtained with nanoshells could be higher than those obtained with silver sols.