Link: http://www.straightdope.com/classics/a990618b.html
In my own experience the smell does disappear for a while, but usually it returns (diminished though) after half an hour or so. It doesn’t matter whether the water is cold or warm. In Denmark you can actually by soap shaped “bars” of stainless steel for this purpose. They were very popular about 10 years ago, but now they can be a bit difficult to find.