Archer
··Omega Qualified WatchmakerI see plenty of magnetized watches in the shop. Sometimes it affects timekeeping, sometimes it affects other functions depending on the watch, and it can affect parts that are not movement parts:

Even parts of quartz watches can be magnetized, like on this Cartier - the seconds hand would get pulled down to the minute hand stopping the watch:

After disassembly, every movement gets demagnetized before it goes into the cleaning machine, so particles don't end up stuck on magnetized parts like you see here:

Movements are demagnetized after assembly as well - this is standard operating procedure in any brand service center.
As noted, the distance to the magnet is very important, as is the strength of the magnet. Some movements and watches are more susceptible to magnetism than others clearly.

Even parts of quartz watches can be magnetized, like on this Cartier - the seconds hand would get pulled down to the minute hand stopping the watch:

After disassembly, every movement gets demagnetized before it goes into the cleaning machine, so particles don't end up stuck on magnetized parts like you see here:

Movements are demagnetized after assembly as well - this is standard operating procedure in any brand service center.
As noted, the distance to the magnet is very important, as is the strength of the magnet. Some movements and watches are more susceptible to magnetism than others clearly.