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What is the process called in which a magnet loses its magnetic properties?

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demagnetization

If you stroke an iron nail with a bar magnet, the nail will become a permanent  or at least long-lasting  magnet. Its magnetic domains will remain aligned even after you remove it from the magnetic field of the bar magnet. Permanent magnets can be demagnetized, however, if they are dropped or heated to high temperatures. These actions move the magnetic domains out of alignment.

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