Teddy, GREAT QUESTION, I knew it to be true but its been toooooooooooo longggggggggggg for me to explain (I graduated EE wayyyyyyy back in 69) so heres a copy n paste off Google which tells it much better then I could...
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Because iron is a relatively good conductor, it cannot be used in bulk form with a rapidly changing field, such as in a transformer, as intense eddy currents would appear due to the magnetic field, resulting in huge losses (this is used in induction heating).
Two techniques are commonly used together to increase the resistivity of iron: lamination and alloying of the iron with silicon.
Lamination
Typical EI Lamination. Laminated magnetic cores are made of thin, insulated iron sheets, lying, as much as possible, parallel with the lines of flux. Using this technique, the magnetic core is equivalent to many individual magnetic circuits, each one receiving only a small fraction of the magnetic flux (because their section is a fraction of the whole core section). Because eddy currents flow around lines of flux, the laminations prevent most of the eddy currents from flowing at all, restricting any flow to much smaller, thinner and thus higher resistance regions. From this, it can be seen that the thinner the laminations, the lower the eddy currents. """"""
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Today's Featured Article - A Towny Goes Plowing - by Anthony West (UK). I live in an area renowned for its rural beauty. Small fields with hedgerows and trees are common place, as are small hamlets with village greens and the odd duck pond complete with swans. The center of any village once the shop is closed is the old tavern. Rustic places with cheerful names like "The Griffin" "Red Lion" or "The Plough and Harrow" are found dotted around the country lanes all over the place. The warm glow of yellowish light can be seen for quite some distance at dusk, and
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