He had been a fool not to see it earlier, but all was now blindingly clear. The hobbit had indeed found one of the Great Rings and, more ominously, he had found the One Ring forged by Sauron's hand.
He had not, Gandalf realised, wanted to admit that Bilbo had found – had been found by – such an evil. The ring which might subvert any of the Council, which held greater power than the Nine, was formidable indeed. The unexpected strength of the Periannath was once more revealed, yet action must be taken, for even Bilbo's strength would ultimately be depleted.