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The specs page says the dime uses stainless steel blades. But stainless is non-magnetic from what I understand. How is the mags field transferred to the strings?

I believe stainless is magnetic. I just took a magnet, (a pickup, actually), to a butter knife and it stuck great.

Yup, I guess SS can be used if the carbon content is high enough:355. Can I use Stainless Steel pole pieces?
Most stainless steel rods cannot be used for pole pieces in guitar or bass pickups because they don’t conduct the needed magnetic field to the strings. When you buy screws for pole pieces or a source of directing the magnetic field to the strings, make sure you test to see that they are carbon steel. Brass or stainless steel poles usually don’t work the way you want. There are special stainless steels that can be used that have a high carbon content to conduct the magnetic field to the strings and will resist corrosion. Joe Barden makes great pickups for the Fender “Danny Gatton” model Telecaster and Joe uses two polished stainless steel blades with properties needed to conduct the magnetic field to the strings.