The magician has a small pouch with five different colored magical stones that are different shapes, in it. He removes the stones and shows them to the audience and tells them that the different stones have different powers. He explains that the "red" stone (or any color that you desire) is the stone that has the most power and the wizard or magician can always tell who has the stone. He then places the stones back into the pouch and mixes them up. He asks five different spectators to reach in remove one stone and hold it in his closed fist, but not to look at it. After all five spectators have their stone in their fists, the magician then eliminates one spectator at a time and asks them to open their hand and show that they do not have the "red" magical stone. This is done until the last spectator is left, and he has the "red" magical stone.
You can also just name the person who has the "red" magical stone without eliminating the other spectators first. Or you could force a certain color on a certain spectator.