Shares of Newmont Corporation ( NEM ) are trading sharply lower on Tuesday as gold prices experience their steepest single-day drop in five years. Here’s what investors need to know.

NEM shares are retreating from recent levels. Check the full analysis here.

What To Know: Gold fell 5% to below $4,100 an ounce as investors pivoted from safe-haven assets to equities, with the Dow Jones and S&P 500 surging to record highs on strong corporate earnings optimism.

The sharp reversal in the precious metal comes after a week of significant inflows into gold-backed ETFs, highlighting a volatile shift in market sentiment.

As the world’s largest gold mining company, Newmont’s profitability is closely tied to the commodity’s price. Beyond its primary focus on gold, Newmont ( NEM ) is also a significant producer of copper, silver, zinc and lead.

The company also manages all phases of the mining lifecycle, from exploration and project development to extraction and closure, positioning it as a leader in the global mining industry, making its stock performance highly sensitive to gold’s price fluctuations.

Benzinga Edge Rankings: Despite Tuesday’s sharp decline, Benzinga Edge stock rankings highlight Newmont’s strong Growth and Momentum scores of 88.95 and 87.74, respectively.

NEM Price Action: Newmont shares were down 8.86% at $86.48 at the time of publication on Tuesday, according to Benzinga Pro data.

Read Also: Central Banks Are Hoarding Gold, And This ETF Is Cashing In

How To Buy NEM Stock

By now you're likely curious about how to participate in the market for Newmont ( NEM ) – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

Image: Shutterstock