Many blades become magnetized by the stroking of the grinding and sharpening processes; Many of my everyday knives and chisels display this affect, but the pole changing seems weird, and though I've never tested, the magnetization of knives from sharpening seems to be only along the edge and/or tip.
Hot working magnetic steel will demagnetize it, but not all of us knew that. Allow me to propose that the original costumers didn't know it either; perhaps this was a gimmick to "demonstrate" a blade being from a famous magnetic ore deposite (or of course, to suggest other magical/spiritual powers; look how modern paranormalists use their thermometers, manetometers, electrometers, etc.).
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