Nothing destroys a magic trick more than learning how it is done. With most other things we use, learning how they are made makes them more magical.
A pencil is a marvel of engineering – like most things we use everyday. It starts off as a piece of wood that is sawed into two hexagonal slivers and split right down the middle, with a groove etched in for the lead. The lead itself is a blend of graphite and clay, baked in an oven at more than 800 degrees Celsius. The pencil then gets several coats of paints and is packaged before it hitches a ride to a stationary store near you. Seeing all of this come together is magical.
If you look deep enough, there is magic behind how anything happens.