Abstract: A sensor system includes a coil positioned on a thin substrate sandwiched to a layer of mumeta, a high magnetic permeability material. The mumetal acts as an amplifier for the inductance L measured at the terminals of the coil. When a magnet passes in front a sheet of mumetal, its magnetic field locally saturates the mumetal whose magnetic permeability collapses on the saturated surface. The result is a reduction of the inductance factor (L) in proportion with that area of the coil covered by the saturated mumetal. This reduction in inductance is measured at the coil terminals to provide an estimation of that area of the coil that has been covered. By determining a particular layout of the coil, mumetal, and magnet, a predetermined electrical signal of inductance or coupling variations corresponding to movement of the magnet is provided.