Magnet Theory

Metals are made up of many tiny domains of magnetically aligned groups of atoms.  Some metals, mostly just iron and iron alloys, allow for those groups of atoms to change their alignment if subjected to a strong enough magnetic field.  This is why a magnet placed at one end of a nail will make the nail magnetic at the far end, enough to pick up small paperclips from much further away than the actual magnetic field of the magnet could manage. 

magnet and nail
picture by Patrick Woolery

However, as soon as the magnet and nail are separated, the nail's little magnetic domains go back to the chaotic mix that is their natural state.  In this state, all the different dipoles serve to effectively cancel each other.

illustration of random domains
picture by Patrick Woolery

Fine and dandy, but so what, right? 

Here's the big idea:

If a significant portion of those groups of atoms were to permanently change their dipole alignment, the nail (or other iron rod) would become a magnet permanently, not just while in contact with a permanent magnet. 

The commonly-suggested method of doing this is to hit it with a hammer while it is aligned with a magnetic field.  The idea is that the force of the hammer will "jiggle" the tiny magnetic domains, releasing them momentarily to realign with any available strong magnetic field.  The normally suggested field is the Earth's magnetic field. 

illustration of aligned domains
picture by Patrick Woolery

Here's a common search for methods that will yield plenty of suggestions along these lines. 

I am unable to find any examples of videos that actually show it being done, in spite of the plethora of web sites that claim it does work.

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