We report an experimental enhancement of the magnetic susceptibility of suspensions of particles that is related to the spatial distribution of the magnetic phase in the particles. At low field, the susceptibility of suspensions of nickel-coated diamagnetic spheres was approximately 75% higher than that of suspensions of solid nickel spheres with the same nickel content. This result was corroborated by magnetostatics theory and simulation. The distribution of the magnetic phase in a shell also led to an improvement of the field-induced rheological response of the suspensions.