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Samwise says he wants to see “magic”, Galadriel tells him that is what they call Sauron’s power. So essentially the important thing is not the word, it’s what it actually is. I think “bad magic” is chanting, divining, cursing, summoning, channeling dead spirits, channeling power through gemstones, etc. Now the “good magic” I believe is like a gift granted to a person or race, like the spiritual gifts. A Holy Spirit gift is not going to be called magic. However, in a fantasy setting a power/talent/gift might get called magic.