[Raynor]

Oh, one of my favorite subjects...

On this matter, I usually stand on the "staff with magical powers" part of the debate.

Even if Tolkien never states in the LotR if the staff has (or hasn't) magical powers, there are hints in other works:

Originally Posted by An unexpected party, Hobbit

Gandalf struck a blue light on the end of his magic staff, and in its firework glare the poor little hobbit could be seen kneeling on the hearth-rug, shaking like a jelly that was melting.

counterargument: magic is used rather lightly in the Hobbit

Originally Posted by The Istari, Unfinnished Tales

and so he was called among Men of the North Gandalf, "the Elf of the Wand"

a wand is pretty much different, phisically speaking, from a staff - yet it is similar, in characteristics, to a magic staff; the wand refference appears several times in the Hobbit and LotR;

Originally Posted by The Istari, Unfinnished Tales

It is an actual Norse name (found applied to a Dwarf in Völuspá) used by me since it appears to contain gandr, a staff, especially one used in "magic," and might be supposed to mean "Elvish wight with a (magic) staff." Gandalf was not an Elf, but would be by Men associated with them, since his alliance and friendship wit Elves was well-known

debateable refference, but fine by me.

Originally Posted by The mines of Moria, HoME VII

They followed in amazement, and as they stumbled behind he gasped out some information. 'I have lost my staff, part of my beard, and an inch of eyebrows,' he said. 'But I have blasted the door and felled the roof against it, and if the Chamber of Mazarbul is not a heap of ruins behind it, then I am no wizard. All the power of my staff was expended [?in a flash]: it was shattered to bits.

counterargument: this refference doesn't appear in future variants of the story, which would dimminish its validity - not to me

- another point: his stuff isn't affected by fire (when he lights the fire for the fellowship) - but the staff itself could be protected by Gandalf.