[samrohan]

People in pubs and inns talk a lot of rubbish. Presumably Hobbits do the same.

I can't remember reading anything about giants in the Hobbit or the LOTR. However I have not read the Hobbits for a few years. Is the quote not just purely speculative, does Gandalf not talk using metaphores.

I don't believe there were any giants on Middle Earth bigger than Trolls and Ents. If there were, surely Sauron would have found a way to enslave them too to his cause.