Step 1: Concept
Magnetic susceptibility ($\chi$) measures how much a material becomes magnetized in an applied magnetic field.
Step 2: Meaning
A negative susceptibility indicates that the material develops an induced magnetization in a direction opposite to the applied external magnetic field.
Step 3: Analysis
Paramagnetic and ferromagnetic materials have positive susceptibility as they are attracted to magnetic fields. Diamagnetic materials are repelled by magnetic fields, resulting in a negative value for $\chi$.
Step 4: Conclusion
Therefore, diamagnetic materials characterized by this property always have negative magnetic susceptibility.
Final Answer: (D)