WHY CAN CHAINS BE VERY HARD TO FIND?
Chains consist of many individual links. Unless chains are tangled, or have built up a halo effect, metal detectors can only pick up the individual links, not the complete mass. So if the individual links can be detected (or the largest bit, eg the clasp), the chain will be detected, fine chains with small catches are often impossible for metal detectors to detect.
HOW DOES A METAL DETECTOR WORK?
To understand how a metal detector works, we first need to understand a bit about magnetism and electricity. If we pass an electrical current through a wire, a magnetic field is formed around the wire. Conversely, if a magnet is passed over a piece of wire, it induces an electrical current into the wire. This is called an eddy current. In a straight piece of wire, the induced magnetic field is very short-lived as the eddy current has nowhere to go, dies out quickly, and consequently the magnetic field created is quite weak. If the same eddy current is magnetically induced into a piece of wire with both ends electrically joined (like a ring), these eddy currents effectively run round and round, creating a stronger, more concentrated magnetic field which lasts longer.
The transmitter current of a metal detector is applied to the coil (of wire) and creates a large, concentrated magnetic field around the coil. This magnetic field will induce eddy currents into any metal targets in the ground and they will in turn create their own magnetic field. This magnetic field around the target then induces a current back into the detector coil. This is processed in the receiver and results in a sound from the detector. (Or in the case of a detector with a threshold, a change in that threshold.)
Consequently, one of the “best“ targets (or one that can be found at greatest depth) is a high carat gold ring (it is a shape that is most conducive to greater eddy currents, has high conductivity for larger currents and therefore a very strong magnetic field). If this same ring is cut, you may only find it at a quarter of the depth as the eddy currents quickly die out! “Worst“ target may be a thin straight piece of wire (weak, “short“ eddy currents and therefore a weak magnetic field).
And here is a the whole link in case anyone likes to read.
http://www.treasurelore.com/florida/detector_info.htm
This is not the exact place I read it from before but it's the same general Idea of chains.