History
Early European navigators believed that compass needles were attracted either to a "magnetic mountain" or "magnetic island" somewhere in the far north (see Rupes Nigra), or to the Pole Star. The idea that the Earth itself acts as a giant magnet was first proposed in 1600 by the English physician and natural philosopher William Gilbert. He was also the first to define the North Magnetic Pole as the point where the Earth's magnetic field points vertically downwards. This is the definition used nowadays, though it would be several hundred years before the nature of the Earth's magnetic field was understood properly.
Read more about this topic: North Magnetic Pole
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