It's anyone's guess, really, since it's not explained further in the trilogy, the Silmarillion, or UT; it is possible that Tolkien mentions it further in his letters, but I don't know.
My guess is that Saruman, in his quest for more power, tried his hand at making his own Ring of Power, but that it wasn't all that he had hoped for. If it was indeed such a Ring, it probably failed when the One was destroyed, hence Saruman being reduced to little more than a beggar.
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