Step 1: Understanding Retentivity and Coercivity
- Retentivity refers to the ability of a material to retain magnetization after the external magnetic field is removed.
- Coercivity refers to the ability to withstand demagnetization by an external force.
Step 2: Characteristics of Permanent Magnets
Permanent magnets require:
- High retentivity to ensure they retain magnetization for a long time.
- High coercivity to resist external influences that could demagnetize them.
Thus, materials suitable for permanent magnets must possess both high retentivity and high coercivity.
Conclusion
Thus, the correct answer is:
\[
\text{High retentivity and high coercivity}
\]