This presentation will describe our observations of unconventional behavior in engineered Au-Ag nanostructures. Structurally, these comprise of ~1 nm Ag nanoclusters embedded into an Au matrix. These materials behave unconventionally and fail to exhibit metal-like behavior on several fronts. In particular, these materials show unusual transitions to a highly conductive, strongly diamagnetic state. Further, in their optical properties, a suppression of Mie-like behavior is observed along with the emergence of a broad, surprisingly non-dissipative, scattering resonance.