Photo credit MagneticStyle.com
Lodestone is magnetic when found in nature. It was commonly used in the manufacture of compasses, because of these magnetic properties. Hematite, on the other hand, is not magnetic by nature.
What we have come to think of as magnetic hematite is actually a synthetic material called synthetic Hematite or hemalyke. This synthetic material is created with magnetism - thus the confusion between the two types of minerals.
Both minerals have healing and mystical properties. For more information on the two minerals, please visit the hematite article in the resource library at Vintage Jewelry Lane.