How to de-magnetize.....

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If they still sell them you can try Radio Shack for a cassette/vhs tape de-magnetizer.

Also I've heard that heating the metal can remove the magnetism.
 
Take 'em with you to the grocery store or BestBuy and place them on the pad that says "do not place credit cards here or they will be demagnetized" ;) I have no idea if it will work or not, but it's a free attempt.
 
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I have my doubts about that Harbor Freight tool to demagnetize anything. I use a Radio Shack 44-233A VCR degausser, it does a through job. I can even demagnetize track and switches with it, very useful to prevent magnatraction engines from picking up stuff stuck to the track.

I've seen them for $10-15 on eBay, but the cheapest one I see right now is: http://cgi.ebay.com/Radio-Shack-Hig...797?pt=LH_DefaultDomain_0&hash=item3361db3c05

Here's a similar unit going pretty cheap right now: http://cgi.ebay.com/Realistic-Bulk-...881?pt=LH_DefaultDomain_0&hash=item45f7bb45d1

I found mine at a better price with a different search, this is the one I'd buy: http://cgi.ebay.com/Bulk-Audio-Vide...423?pt=LH_DefaultDomain_0&hash=item2eb250f027
 
Well, my tape demagnetizer works great on everything I've tried it on. It's truly the "industrial strength" solution. :)

You can't demagnetize with a permanent magnet, you need a decaying A/C magnetic field to do the job.
 




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