A high capacity magnetic filter separates diamagnetic and/or paramagnetic substances from fluid streams. Diamagnetic solid substances are magnetized under an external magnetic field through coordinated interaction of diamagnetic solid substances with an inducement paramagnetic material (IPM). The magnetic filter serves as a separation zone created by the presence of IPM and magnets that are shielded from the IPM by non-magnetic sleeves or partitions. The IPM in the void volume between the magnets affords large surface area onto which diamagnetic and paramagnetic materials can contact and be attracted to. The relative position and distance of the magnetic source, such a magnetic bar or electromagnet, to the solid mixture of diamagnetic and IPM are adjusted to induce sufficiently strong magnetism in the diamagnetic solids which causes the diamagnetic solids to be attracted by the magnetic field as well. Both diamagnetic and paramagnetic substances can be removed from a liquid or gas.