A method of producing permanent magnets, which is believed to be novel, is briefly described. The method consists of drawing a compact containing parallel iron wires spaced by a copper alloy matrix until the iron wires become extremely small.Intrinsic coercive forces of 400 oe have been measured in samples drawn from compacts in which the initial spacing between the iron wires corresponded to an iron packing fractionpof about 0.45. Annealing of cold‐drawn samples generally increased both the coercive force and the squareness of the demagnetizing curve.