1) "A ferromagnet, like a paramagnet, has unpaired electrons. However, in addition to the electrons' intrinsic magnetic moments wanting to be parallel to an applied field, there is also in these materials a tendency for these magnetic moments to want to be parallel to each other. Thus, even when the applied field is removed, the electrons in the material can keep each other continually pointed in the same direction. Every ferromagnet has its own individual temperature, called the Curie temperature, or Curie point, above which it loses its ferromagnetic properties. This is because the thermal tendency to disorder overwhelms the energy-lowering due to ferromagnetic order." 2) "Ferromagnetic materials can be magnetized in the following ways: Placing the item in an external magnetic field will result in the item retaining some of the magnetism on removal. Vibration has been shown to increase the effect. Ferrous materials aligned with the earth's magnetic field and which are subject to vibration (e.g. frame of a conveyor) have been shown to acquire significant residual magnetism. A magnetic field much stronger than the earth's can be generated inside a solenoid by passing direct current through it. Stroking - An existing magnet is moved from one end of the item to the other repeatedly in the same direction. Placing a steel bar in a magnetic field, then heating it to a high temperature and then finally hammering it as it cools. This can be done by laying the magnet in a North-South direction in the Earth's magnetic field. In this case, the magnet is not very strong but the effect is permanent. Permanent magnets can be demagnetized in the following ways: Heating a magnet past its Curie point will destroy the long range ordering. Contact through stroking one magnet with another in random fashion will demagnetize the magnet being stroked, in some cases; some materials have a very high coercive field and cannot be demagnetized with other permanent magnets. Hammering or jarring will destroy the long range ordering within the magnet. A magnet being placed in a solenoid which has an alternating current being passed through it will have its long range ordering disrupted, in much the same way that direct current can cause ordering. In an electromagnet which uses a soft iron core, ceasing the flow of current will eliminate the magnetic field. However, a slight field may remain in the core material as a result of hysteresis." 3) "Magnetic metallic elements Many materials have unpaired electron spins, and the majority of these materials are paramagnetic. When the spins interact with each other in such a way that the spins align spontaneously, the materials are called ferromagnetic (what is often loosely termed as "magnetic"). Due to the way their regular crystalline atomic structure causes their spins to interact, some metals are (ferro)magnetic when found in their natural states, as ores. These include iron ore (magnetite or lodestone), cobalt and nickel, as well the rare earth metals gadolinium and dysprosium (when at a very low temperature). Such naturally occurring (ferro)magnets were used in the first experiments with magnetism. Technology has since expanded the availability of magnetic materials to include various manmade products, all based, however, on naturally magnetic elements." Source and further information: http://en.wikipedia.org/wiki/Magnets

Permanent magnet lodestones contain magnetite, a hard, crystalline iron ferrite mineral that derives its magnetism from the effect the earth's magnetic field has on it. Various steel alloys can also be magnetized. The first big step in developing more effective permanent magnet materials came in the 1930s with the development of Alnico alloy magnets. These magnets take their name from the chemical symbols for the aluminum-nickel-cobalt elements used to make the alloy. Once magnetized, Alnico magnets have between 5 and 17 times the magnetic force of magnetite. Ceramic permanent magnets are made from finely powdered barium ferrite or strontium ferrite formed under heat and pressure. Their magnetic strength is enhanced by aligning the powder particles with a strong magnetic field during forming. Ceramic magnets are comparable to Alnico magnets in terms of magnetic force and have the advantage of being able to be pressed into various shapes without significant machining. Flexible permanent magnets are made from powdered barium ferrite or strontium ferrite mixed in a binding material like rubber or a flexible plastic like polyvinyl chloride.

* 24-inch piece of thin-gauge wire with 1 inch of insulation removed from each end * D-cell battery * Steel paper clips Step 1: Gather all your supplies and arrange them on a large, clear area where the project will take place. Step 2: Wrap the center portion of the wire tightly around the nail 20 to 30 times in one direction, leaving slack on each end. The more wire you wrap around the nail and the tighter it’s wrapped, the more powerful your magnet will be. Be sure to leave enough loose wire on the ends to attach to the battery. Step 3: Attach one loose end of the wire to the positive (+) terminal of the battery. Step 4: Attach the other loose end of the wire to the negative (-) terminal of the battery. Once both ends are connected, the nail becomes a magnet. Step 5: Use the nail to pick up the paper clips. The electricity from the battery has created an electromagnetic field on the nail. Copied from the Demand Media sister site, ehow.com

By rubbing a magnet on a needle. I did this when I was a kid.