Perhaps Saruman invested much of his own power into his staff in order to increase his strength, much like Sauron did with the One Ring. Both beings were Maiar, after all.
Gandalf, always wary of worldly trappings and vigilantly keeping his eyes on his mission, chose to keep most of his own power inside of himself. This is why he was able to fight the Balrog without it.
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Even as fog continues to lie in the valleys, so does ancient sin cling to the low places, the depression in the world consciousness.
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