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In order to clarify whether or not there is any magnetic interaction between the magnetic colloidal particles in magnetic fluids (MFs), we present a method for comparing the magnetization curve of a mother MF with that of a few-thousand-fold diluted solution. For a MF which showed clusters of colloidal particles in an optical microscope under an applied magnetic field, the hysteresis loops for the mother MF and its few-thousand-fold dilution displayed different shapes for weak fields. We conclude from this result that strong magnetic interactions exist between the particles in this MF. On the contrary for a MF which showed no clusters under optical microscopy, no differences in shapes of the hysteresis loops for the mother MF and its few-thousand-fold dilution were observed in the weak field region. However, differences were observed for the field region above 80 kA/m. © 2002 American Institute of Physics.