Deciding where to invest your first £500, or any other amount, can be challenging. The internet has made a wider range of assets available than ever before, and each have their pros and cons.With the prospects for the world economy uncertain at present, many investors have become more upbeat about the prospects for gold. Its status as a defensive asset could mean it offers less volatility than other assets, such as shares.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…However, with the FTSE 100 offering a high yield, a low valuation, and long-term growth potential, it could be a better place to invest. It may improve your financial prospects to a greater degree than gold, or any other asset.FTSE 100 potentialWith the FTSE 100 currently having a dividend yield of around 4.2%, its income potential is high compared to its historic levels. This could make it much more attractive than gold, with the precious metal not providing an income to its holders. At a time when interest rates are low and many investors are struggling to generate an inflation-beating income from their capital, a high income return could be a useful ally.The FTSE 100’s high income return also suggests it could deliver strong total returns in the long run. As a cyclical index, its performance ebbs and flows over the long run. As such, capitalising on its relatively attractive price level at the present time could lead to high returns in the coming years, with many of its members currently having ratings below their long-term averages.An uncertain future?By contrast, gold’s future returns could be lower than many investors are currently expecting. Having risen to relatively high levels over the past couple of years, there may be reduced scope for further growth in its price level.Gold has benefitted from an uncertain economic outlook for the world economy. While that still exists, the ‘phase one’ trade deal between the US and China, as well as progress on Brexit, could mean investors adopt an increasingly bullish outlook on the prospects for the global economy. This could stimulate demand for riskier assets, such as FTSE 100 shares, and may lead to a strong performance from the index.In addition, gold has benefitted form lower US interest rates in recent years. While they may continue to be low in the short term, the potential for them to rise could negatively impact on the precious metal’s performance to a larger degree than that of the FTSE 100.DiversificationWhile gold is a defensive asset, it doesn’t provide investors with diversification. Buying a FTSE 100 tracker fund, or individual shares, reduces your exposure to a specific geography or sector, and could improve your risk/reward ratio. As such, now could be the right time to buy FTSE 100 dividend stocks, rather that rely on gold’s performance over the long run. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images. Peter Stephens | Sunday, 26th January, 2020 See all posts by Peter Stephens “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Our 6 ‘Best Buys Now’ Shares I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Simply click below to discover how you can take advantage of this. Enter Your Email Address Forget gold! I’d invest my first £500 in high dividend-yielding FTSE 100 stocks today Peter Stephens has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.