Magnetized/Demagnetizec tool.

[dvn]

Good deal here if it can demagnetized a watch as well.

http://7deadlydeals.com/home.php?id=23657

[kbh]

A great demagnetizer is an electric soldering gun if you happen to own one. You can open the wire up and actually put a watch through although I've only used mine for demag'ing screw drivers.

[SSTEEL]

I have the bench top one, blue with area for watch, and a red button on the front.