drmagtri said:
In any magnet there is indeed a magnetic current flow. If it were the metal itself then we would not be able to change the poles or make the material not a magnet anymore.
See here:
http://en.wikipedia.org/wiki/Magnetism
Particularly this part of it:
Ordinarily, the enormous number of electrons in a material are arranged such that their magnetic moments (both orbital and intrinsic) cancel out. This is due, to some extent, to electrons combining into pairs with opposite intrinsic magnetic moments as a result of the Pauli exclusion principle (see electron configuration), or combining into filled subshells with zero net orbital motion. In both cases, the electron arrangement is so as to exactly cancel the magnetic moments from each electron. Moreover, even when the electron configuration is such that there are unpaired electrons and/or non-filled subshells, it is often the case that the various electrons in the solid will contribute magnetic moments that point in different, random directions, so that the material will not be magnetic.
However, sometimes — either spontaneously, or owing to an applied external magnetic field — each of the electron magnetic moments will be, on average, lined up. Then the material can produce a net total magnetic field, which can potentially be quite strong.
The magnetic behavior of a material depends on its structure, particularly its electron configuration, for the reasons mentioned above, and also on the temperature. At high temperatures, random thermal motion makes it more difficult for the electrons to maintain alignment.