I've heard about using the magnets from hard drives but I haven't tried that yet. I'll have to ask a friend who an IT manager to save me some.
There are two in every hard drive, located on the mounting brackets for the read/write arm. It's a pain to remove them the first time as they are both glued and magnetically attracted to the steel of the mounting brackets. I use two pair of vice grips and bend the brackets, allowing me to slip a flat bladed screw driver underneath the end of the magnet. You'll need a torx driver to open the case (remember that there is one HIDDEN torx screw under the paper label on the case. Rip the label to get at it,) a flat blade screwdriver to remove the read/write arm, (which won't come off until you remove the screw at the end of the bracket) You'll be able to see the magnets at that time.
How do you make the hole for the magnet?
Here are four magnets removed from hard drives. This is the configuration I use for large (K-bar sized) knives. It will hold a K-bar upside down securely even if jumping up and down. For smaller boot knives and skeleton blades I only use two magnets vertically.
For inverted carry sheaths I use three layers of leather for the back. Two of thicker (one 8-9 oz backing piece, and the other the thickness of the magnets to hold them. Varies from drive to drive,) veggie tanned leather and one very thin layer of garment leather.
I cut a rectangular hole in the magnet leather roughly the same size as the magnet layout midway along the blade length. I put that on a sheet of vinyl, put the magnets inside, and fill up all the spaces with "Shoo-Goo" liquid rubber. (This won't stick to the vinyl. Find it at Sporting Goods stores, Athletic Shoe stores, etc.) When dry, this forms a custom fit to the magnets and keeps them from shifting around. The thin layer of garment leather goes over the top of this to keep the blade from getting scratched up by the magnets, and all of this gets glued to the back piece with contact cement. Not really much thicker overall than my regular sheaths. I then just continue to make the sheath as usual, leaving off an holding straps. No need. The magnets hold perfectly! In fact, sometimes too well!!
Stitchawl