Where do I put images and what's the src path

Hi I have the following directory structure under Hugo:
My-site
–|content
----|pages
------|page1
--------index.md
–|layouts
----|_default
------|single.html contains <img src="image.jpg" alt="image" />
–|themes
----|hyde
------|images
------|layouts
--------|_default
----------|single.html

In which folder do I put image.jpg?
How do I write the src path to image.jpg?

Thanks for any help
David

and

and

You can put your images anywhere you like so long as you have a reference to the expected location. If your single layout expects an image.jpg file you could conceivably put a symlink to image.jpg in your static dir and link to a file on your desktop.