PURPOSE: To enable easy demagnetization at a low cost by coating a magnetic coating compd. on a nonmagnetic base and subjecting the coating to an orientation treatment, then passing the resulted magnetic recording medium between a pair of permanent magnets.

CONSTITUTION: The magnetic coating compd. is coated on the nonmagnetic base and is subjected to the orientation treatment; thereafter, the resulted magnetic recording medium is passed between a pair of the permanent magnets and is thereby demagnetized. Disposition of a pair of the permanent magnets so as to form a magnetic field in the region where the magnetic recording medium is inserted, therefore, suffices as the demagnetizing means. The demagnetizing effect similar to the effect obtainable in the conventional case of using an AC demagnetizing device is thereby exhibited and the erasing is extremely easy and is low in production cost.