Magnetized Drill bits

[Yorkie]

I use one of these magnetiser/demagnetisers, mostly for magnetising screwdrivers, which I find very useful in holding steel screws when fitting them in awkward spaces. Cheap enough. You just stroke the screwdriver through the'magnetise' space a few times to magnetise it, or through the other hole to de-magnetise it:

http://www.ebay.co.uk/itm/Magnetisers-De..._Equipment&hash=item51a7b87f7b

I dare say that if demagnetised, your drill bits would soon re-acquire their magnetism, but you could then demagnetise them as often as you wish.

Hope that helps a bit.