Some iron compounds are magnetic, while others aren't. Iron oxide and iron sulfate seem to be magnetic. They are common forms of iron, although they probably aren't the best absorbed, and are not ideal as supplements. They are probably very inexpensive though. They are absorbed to some degree. Cereal makers charge so much for cereal. One would think they would spend a few cents a box extra and use a better form of iron that is not magnetic and is much better absorbed.