We performed computer simulations based on a two-dimensional Distinct Element Method to study granular systems of magnetized spherical particles. We measured the angle of repose and the surface roughness of particle piles, and we studied the effect of magnetization on avalanching. We report linear dependence of both angle of repose and surface roughness on the ratio $f$ of the magnetic dipole interaction and the gravitational force (\emph{interparticle force ratio}). There is a difference in avalanche formation at small and at large interparticle force ratios. The transition is at $f_c \approx 7$. For $f < f_c$ the particles forming the avalanches leave the system in a quasi-continuous granular flow (\emph{granular regime}), while for $f > f_c$ the avalanches are formed by long particle clusters (\emph{correlated regime}). The transition is not sharp. We give plausible estimates for $f_c$ based on stability criteria.

9 pages, 7 figures