hi darkchild!
Yes, that's basically correct, but I don't think it has anything to do with
currents of electrons.
All materials are slightly diamagnetic, and all materials (I think) with unpaired electrons are paramagnetic.
Diamagnetism comes from the dipoles of paired electrons (paired either between two atoms or within one atom … see http://en.wikipedia.org/wiki/Electron_pair" ), and is weakly present in all materials. Diamagnetic materials are repelled by magnetic fields, and lines of magnetic flux curve away from them.
From http://en.wikipedia.org/wiki/Diamagnetism" …
Diamagnetism is a very general phenomenon, because all paired electrons, including the electrons of an atom, will always make a weak contribution to the material's response. However, for materials that show some other form of magnetism (such as ferromagnetism or paramagnetism), the diamagnetism is completely overpowered. Substances that mostly display diamagnetic behaviour are termed diamagnetic materials, or diamagnets. Materials that are said to be diamagnetic are those that are usually considered by non-physicists to be "non-magnetic", and include water, wood, most organic compounds such as petroleum and some plastics, and many metals including copper, particularly the heavy ones with many core electrons, such as mercury, gold and bismuth.
… the term "diamagnetism" was coined by Michael Faraday in September 1845, when he realized that all materials in nature possessed some form of diamagnetic response to an applied magnetic field.
Paramagnetism comes from the dipoles of
unpaired electrons, and paramagnetic materials are attracted by magnetic fields … see http://en.wikipedia.org/wiki/Paramagnetism" .