Neodymium is classified as a paramagnetic material, yet neodymium magnets are made from ferromagnetic alloys that include neodymium. This distinction explains how permanent magnets can be created despite the paramagnetic nature of pure neodymium. The discussion also touches on the differences in magnetic properties between regular steel and stainless steel, as well as the magnetic characteristics of nickel compared to the coin. Understanding these concepts clarifies the behavior of various magnetic materials. The interplay of different magnetic properties is crucial in the functionality of neodymium magnets.