The separation of heavy metals from wastewater may be improved by precipitation/flocculation with iron- or aluminium salts. Often, the resulting products are voluminous, water-containing, amorphous hydroxides which show only limited flocculation properties and may possibly pose problems with the technical separation from the aqueous phase. The application of magnetite could be advantageous because magnetite is ferromagnetic and can be separated very quickly in a magnetic field. First of all, a simple preparation method for magnetite was studied. Pure magnetite could be prepared by mixing an iron(II) salt solution with an equivalent amount of sodium hydroxide at room temperature without oxidation by air. The required reaction time was only 3 hours. For the precipitation of heavy metals from an electroplating wastewater, a better metal elimination and smaller sludge volumes resulted with that artificially produced magnetite in comparison with a precipitation by NaOH. Thereby not only the adsorption of metals was established but also coagulation effects of the magnetite sludge with small metal hydroxide particles. By means of the experimental results, sorption of nickel and chromium was compiled as function of pH and precipitation time. Because freshly precipitated magnetite shows very good sorption and flocculation properties, and pH of precipitation may be lower, its use in high gradient magnetic separation (HGMS) could be more effective for metal elimination than magnetite powder.