There are three major different types of microphones used for music recording (at major label studios, indie studios, & home studios alike) and they are as follows:
(1) Dynamic microphones.
(2) Large diapragm condenser microphones.
(3) Small diapraghm condenser microphones.
No Single "Best" Microphone
The first important thing to understand is that there is no "one mic fits all" solution. Each microphone is best suited to a certain type of recording. The first thing you need to know is what you are recording. Once you know that then you can select the best type of microphone (and from there you can choose the specific brand of microphone that you can afford.)
Dynamic Microphones
These are generally the cheapest type of microphone and they are also the most durable. They don't require "phantom power" like condenser mics do (more on that in the condenser mic section of this article.) What are they best suited for? They are used for recording amplified sounds such as an electric guitar's amp. You may think that you should record your electric guitar directly into your recording device but this is not true. You will never capture the same sort of sound by going directly in as you will when recording an amp. They are also used for recording drums (bass drums, snares, & toms.)
Large Diapraghm Condenser Microphones
These are used for recording vocals and "deep" sounding acoustic instruments such as a cello or an upright bass. These tend to be more expensive and in fact they can get to be extremely expensive in some cases (like the famous Neumann U87 which retails for over $4000.)
Small Diapraghm Condenser Microphones
These are used for recording most acoustic instruments (acoustic guitars, violins, etc) and for recording cymbals and hi-hats on a live drum set.
Which Brand?
Now that you know which type of microphone to use, the next decision is which brand should you buy? For the most part the more expensive the microphone, the higher quality it is. This isn't simply a situation where the same products are being stamped with different brands (see: clothing) it's a situation where there are vast differences in the quality. You will notice a significant improvement in sound quality when using a more expensive mic. Thus the answer to this question is: Buy the most expensive microphones you can afford.
