Joel-
Yup, the pointy end is the South Pole of the needle, the other, of course, the North Pole.
Since opposites attract in magnetic fields, the pointy end South Pole points toward the Earth's Magnetic North Pole out there between Greenland and Canada.
Since this magnetic pole is not on top of the Earths North Pole, the difference is Compass Deviation, 17 degrees in Northern California (Bay Area).
Electronic compasses are set for the local user to correct for the deviation to give bearings in what we call True North. These compasses detect the Earth's magnetic field by using coils set at right angles to each other to find (calculate, really) the bearing from the difference in signals set back from the coils.
With a conventional magnetic compass, you have to use the local charts to get the Magnetic Variation for where you are, and then add or subtract this from the magnetic bearing.
You see the Compass Rose on charts, with the round Compass Rose pointing True North, and a drawn compass needle inside pointing to the Magnetic North Pole, and the deviation indicated thereby and noted in writing.
GPS systems calculate True North as well as position from the signals recieved from satellites.
Probably more than you wanted to hear, but oh well...........! (Still get locked in the "teacher mode" w/o thinking sometimes!)
Joe.