Nov 13, 2012· Hematite is a stone made from iron ore. Its name comes from the Greek word for red, as hematite stones are often reddish brown. Hematite can also be gray or steelcolored; however, there is always a rustcolored streak in every hematite stone. Hematite and Magnetism. Hematite's magnetic properties were the subject of debate by scientists in the ...