Hi Steven,
Done some reading and things are rather clear. First lets see how a moving coil cartridge operates.
Moving coil cartridges
The first cartridges with Hi-Fi specifications were developed in the mid-forties and were of the moving coil design. In general, moving coil cartridges are more expensive than magnetic cartridges and they do not, therefore, enjoy the same popularity. However, the most demanding Hi-Fi enthusiasts remain loyal to the moving coil design because of its great linearity and lower distortion.
Compared with a moving magnet cartridge, the reverse principle is applied in the moving coil cartridge. Here, a powerful fixed magnet is used and the coils are mounted on the cantilever itself. When the coils move in the field of the magnet, they cut the flux lines of the magnet and voltages are generated in the coils. (Fig. 6)
(Fig. 6.) Moving Coil cartridge principle. The coils on the cantilever move in a powerful magnetic field, and voltages are generated by induction.
Once again, with a moving coil cartridge it is important that the moving parts be as light as possible. Therefore, there are only relatively few windings on the coils, and the output voltage from a moving coil is generally so low that it cannot feed a conventional amplifier without special steps being taken.
The problem is after a prolonged use of the cartridge the cantilever becomes magnet themself as they are always staying in the close proximity of other magnets. Which is quite common. To have a better idea what is happening here it is good two see the following video.
Methods of Magnetisation and Demagnetisation - YouTube
See the video from 7 minute onwards to understand how to demagnetize a magnet by passing ac current which is slowly decreasing in magnitude.
So we understand that basically to demagnetize a magnet we need to pass the ac current through a wire which is wound around the magnet.
Now in our case of a moving coil cartridge we have wires coming out of the moving coil which is sending the current to the preamplifier through the tone arm cable. So in order to demagnetize the cartridge we are actually demagnetizing the cantilever over which the coil is wound.
Now in the original youtube demagnetizing video what is happening is when we are touching the hotpins of the RCA cable we are actually making a closed circuit and as the styles moves in the grooves of the record again current (Not purely AC depends on the Groove and I think a properly designed grrove can generate perfectly decaying AC current) is generated because of electromagnetic induction which is passed though the coil and it demagnetizes the cantilever.
Now if I understand correctly if we do it this way there no way possible to increase or decrease the magnetic properties of the permanent magnets of the cartridge as they are not part of the circuit. So this method should work beautifully.
Well the above is my understanding from basic reading. But I am not too sure about the internals of the cartridge. Moving magnet cartridges are completely diffrent story so above theory is not applicable there.
Thanks.
P.S A good into to electromagnetic introduction is in the video
Electromagnetic Induction - YouTube
But it shows how a moving magnet cartridge works. Moving coil works just the opposite.
Thanks.