Abstract: An electrolytic system for generating hydrogen gas includes a pair of electrodes and an electrolyte. The electrolyte includes colloidal silver, colloidal magnesium, and a nano-metal comprising nano-nickel, nano-iron or a nano-nickel-iron alloy. The electrodes include a first electrode of a non-magnetic material. A second electrode includes an electrode precursor of a magnetic material or an electro-magnet. When in its magnetic state, the electrode precursor exerts a magnetic force of sufficient strength to pull the nano-metal of the electrolyte onto at least a portion of its surfaces, to form the second electrode.