How do you determine how much to spend on speakers

First, decide on what YOU like to listen to and then scour the magazines out there (all of them) to help narrow down your choice on speakers. Speakers first, don't forget. Don't rush into this. Let the hype direct you but trust your ears: listen carefully, as long as permitted, with music you are familiar with. Don't deal with someone who won't let you listen and never feel compelled to buy based on pressure. The good ones are used to seeing the earnest ones come back. Check out the latest issue of Absolute Sound and read the article entitiled "Steak and Lobster on a Spam budget'. Good way to start. In fact, I, myself might buy the amp or pre-amp made by TAD (mentioned in the article). Be wary of 'sonic jewelry': there's tons of mark-up in this industry and alot of those glossy ads underwrite the sales of those mags and therefore get favorable reviews. If you can, talk to someone who's been around in the industry (20-40 years) and glean what you can from them (eg: Pierre @ mapleshaderecords.com or Paul @tubeaudiodesigns.com.). There's a reason why there's so much buying and selling of used, high-end audio gear (your reason here). Good luck.

Krayzeeyk, this thread is getting close to 3 years old. Just curious: Have you purchased a system? How is it working out?

This is a good question to which I don't think there is a firm answer, as you can tell by the myriad of responses here. The question is basically: "which components contribute the most to the quality of sound reproduction?", since it would stand to reason that one should sink the largest sum of money there. I was initially told by my local audio retailer that the most important part of the audio chain is the source (i.e. the CD or DVD player), since the rest of the system can, at best, only reproduce exactly what this component puts out. The argument was to allocate money to buy the best CD or DVD player, followed by the preamp/amp, and lastly the speakers (i.e. that the order of importance parallells the flow of the signal, since at each step the performance of that component is limited by what is upstream). While this is probably true, in reality, the MARGINAL difference from spending an extra $1000 on a CD player may not be the same as another component (say, a speaker).If there is a component that is onviously lesser in quality than the rest of the system, I'd say the money should be spent upgrading that component (i.e.-- "the chain is only as strong as the weakest link" theory). However, assuming you have a system where basically all the components & speakers are of relatively comparable (and reasonably good)quality, I'd agree that upgrading the speakers will have the largest effect on the sound, followed by the source components, then the preamp and finally the amp. I should also mention that adding a power conditioner and quality cables/interconnects can have a large effect as well. With respect to speakers, it is important to audition them with your system, since I find it difficult to predict from a store audition how the speakers will sound with my electronics and in my room. For example, my CD player is a bit on the bright side, so my aerial 7b speakers (which are slightly "reserved") sound alot better than my Thiel 2.3s (which are brighter), even though they are of relatively comparable quality, and both excellent speakers. Interactions between speakers and the electronics, I find, make it difficult to know sometimes if I'm really "upgrading" my speakers, or simply changing them.

To anybody that suggested Audibile differences can't be detected at the price points listed for digital frontends are wrong in my very humble opinion.

John Wright of museatex heavily moddified my Melior DAC, and the differences were huge. The problem with hearing digital differences is patience. Everybody wants instant results. The same people that can't hear differences in interconnects and speaker wire probably don't hear many differences in CDPs or digital front ends. They want instant change. They want to go from hearing RED to hearing BLACK within seconds.

I had been using a NAD 541i CDP and I hooked up the Meilor DAC (using the NAD as a transport) with a Moray James interconnect and a Harmonic Technology Cyberlink Platinum cable. At first there were differences but they were small, or so I thought. After 6 days I hooked up my NAD again and listened. I was disgusted. What I thought was a decent CDP sounded horribly 2-D stale and flat in comparison. These differences were not leaping out in front of me within the first 5mins of listening. After a week of listening to the DAC I heard differences that weren't subtle upon going back to the NAD. The Museatex gave me what the NAD did and didn't take anything away but simply added. Speakers can both add and subtract from other speakers, making the differences more striking.

I think part of the problem stems because speakers can be subjective and people can hear instant change. I sincerly doubt a person could spend $5k on a CDP/dac combo and "hate" its sonic signiture. Generally the more money spent on a CDP will allow you a better overall sound. Likewise, I have listened to speakers costing $5k that I hated. Speakers might be more subjective and might change the sound of music more, but don't disregard the frontend.

The kind of improvements take time, but when you hear them its all worth while. If you had to take away one thing from my system I can tell you right now, the DAC and digital interconnect would be the last thing you could get your paws on. I'd be content listening to this setup on cheaper speakers then a cheaper source. I can live with a system living up to its potential. Having more expensive speakers not coming close to what they could sound like would drive me insane, or kill me.

Monthly income x 3.125 = quality speakers
Annual income x 3.125 = divorce