Perhaps these Staffs were magical/holy items given to the 5 Istari in Valinor by the Valar to aid them in their task and to focus their energies.
Since they all had them, it makes sense. I would say they could still cast spells without them, but they would be less powerful without them.
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A sane being would have given up, but Samwise burned with a magnificent madness; a growing obsession to surmount every obstacle. He knew he would try again, fail perhaps, and try once more, a thousand thousand times if need be.
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