Ferrite is used in the black bar or rod in an AM radio. It's also in the plastic lump you see wrapped around the power cords and cables used on computers and other electronic devices, in case you have more old computer cables that you don't mind chopping up than AM radios.
What George was saying is the ferrite is used to find the zero reference, really nothing more. In order to know and accurately measure the amount of phase shift of the ground, you need to know how far above or below some reference. You do not actually set your detector to a piece of ferrite, that's essentially the same as turning ground balance off.
It's kind of like the old electrical meter that had a moving pointer instead of the digital readout you see now. In order to accurately measure a voltage, the operator first had to make sure the pointer was resting on zero before making his measurements. If the needle where shifted off this zero reference, the reading indicated on the scale would be incorrect by that amount.
That's all, nothing more nor less. Ferrite has no use to the average detector user, unless he is adjusting the internal phase reference. He'd better know very well what he's doing to attempt that, if it's even available to adjust. You won't find it in a menu or on a knob of any typical machine.
It's all right there is this paragraph from George's article above:
"Manual ground adjustment works in this manner: When you position the Ground Adjust control to the phase of the target, in this case the ground, any up or down motion of the coil does not produce a corresponding change in the audio volume. For example, when you position the control to zero phase, and then move a piece of ferrite around near the coil, the audio volume will not change. In other words you have balanced out to the ferrite. However, if you now lower the coil to real ground the audio will increase in volume. Of course this indicates that you are not balanced to the ground."
As George state, you can skew your detector's externally adjustable GB to be quiet on a ferrite sample, but in so doing, you have set your machine's GB to a position that will be incorrect for just about any ground you detect on.
I ran some tests on this and in every case, adjusting to a piece of ferrite caused a loss of depth. I've read where some people believe this is how they need to adjust their detectors to look for meteorites, but I am sorry to report they are wrong. They may have still learned to accept the skewed signal and do find targets that way, but generally speaking, you hear the ground more and targets less.
-Ed