The buzzing sensation felt when a nail is placed inside an electromagnet is attributed to the magnetic field generated by the current. The discussion raises questions about whether the current is alternating or direct, as a DC electromagnet typically behaves like a permanent magnet without buzzing. Participants express confusion about the placement of the nail, questioning if it can truly be "inside" the electromagnet. It is suggested that if buzzing occurs with a DC source, one should verify the current for any AC components. The conversation emphasizes the need for clarity on the electromagnet's design and the nature of the current used.