Inserting image into post by putting it under static folder isn't working

Everything inside the static directory are copied as is to the public directory when Hugo build your site.

These files:

static/image.jpeg
static/images/logo.png
static/favicon.ico
static/doc/example.pdf

Will be accessible at these urls:

http://localhost:1313/image.jpeg
http://localhost:1313/images/logo.png
http://localhost:1313/favicon.ico
http://localhost:1313/doc/example.pdf

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