FYI, I got this link from a spam sent by a vendor at work. They also make this, which, apparently
does actually work:
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When hard water is subjected to fluid dynamic changes (pressure, velocity, tern perature), dissolved minerals precipitate out of solution and migrate to the area of lowest fluid velocity typically, the walls (interior surfaces) of pipes and equipment restricting the fluid flow. This scale also acts as an insulator, dramatically reducing heat transfer efficiency.
However, when a conductive fluid passes through a magnetic field, an electromotive force is induced through the fluid perpendicular to the direction of fluid flow and the flux field. This electrical discharge through the fluid induces a positive polarity in the fluid. The magnetic flux field further causes polar water molecules to be aligned along the flux or magnetomotive force vector, thus affecting the kinetics of crystallization of the minerals in the water. Random covalent bonding of the nucleation points of these scale forming molecular clusters is reduced and, therefore, these minerals stay in suspension. They are prevented from growing so large so as to precipitate out of solution and form hard scale on the walls of pipes and equipment. This process is called "magnetic homogenization."
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Basically, a magnet wrapped around a pipe will prevent dissolved ions from coming out of solution and precipitating onto the pipe.
http://www.enecon.com/products/eneflow_01.asp