Understanding DAC's

Some of the DACs will convert the PCM to DSD or if you have Roon or other software you can do it there and the DAC would need to be capable of playing DSD. I've tried that and to me the DSD conversion seemed to "sound better". I think it's because DSD is louder. When you compare the high resolution PCM to DSD and level match the volume the " sounds better" evaporates. If you like down loads in DSD then it makes sense to get  a DAC that can handle it but like others have said there are not a lot of DSD recordings. A lot of these high priced DACs you're looking at like the Mystique use R2R which if done right is expensive to implement and adds to the cost. 

FYI ...

Most recording studios probably still using PCM for recording albeit at higher resolution and higher sampling rate and only at the last step that they would convert the PCM format to DSD and store to compact disc.

For example, a studio may record the original audio using PCM format at 24bit/192KHz and store that on the master tap.  They then may choose to convert the original PCM either to vinyl or DSD on the last step, or at redbook format at 16bit/44.1KHz.

I would also disagree because the number of recordings available in DSD is pitifully small. I have a small number of DSD recordings, but it's probably less than 0.1% of my collection. The SQ of the DAC playing Redbook is BY FAR the most important criteria for me in choosing a DAC since this is what I'm using it for 99.99% of the time. If the DAC that I decide sounds the best for my budget playing Redbook also happens to play higher resolution and DSD formats (and sounds good doing it), that's a nice bonus, but really plays no part in my purchase decision. 

For comparison purpose :

How high resolution is a DSD recording? There’s no exact way of striking
equivalence between PCM and DSD but it’s around the same as 24-bit/88.2kHz PCM.

In terms of dynamic range, DSD is claimed to be around 120dB in the audible frequency range. In comparison, CD measures around 96dB, and 24-bit/192kHz recordings have a theoretical maximum of around 144dB.

Maybe it's just me. I don't see the sense in getting an expensive DAC and not having DSD Capability.

I would disagree with this assessment since there are lot more things gone into a good DAC than just recording format - DSD, SACD, or redbook.  There are ground noise, power supplies, output amplification stage ... and so on.

Everything considered, the original quality of the recordings probably makes the most difference whether it was done in DSD or redbook PCM.  Having said that, everything else being equal, if the original recoding was done in DSD, it should be better than redbook format.

Also if a recording was done in DSD, it's almost likely that there were a lot more thoughts went into the recording so you probably get more quality playback just because of that - that is the recording was done by people who knew what they were doing.  So the majority of gain in quality probably has more to do with the nature of the recording than because of the DSD format.

I once used JRiver to convert a redbook format CD to DSD format, but the playback of both was more or less the same and I couldn't tell the difference.  So I guess to make any difference, the original recording has to be done in DSD.  That is not to say they are the same, but it is meant to point to the importance of the original format.

And there are also those who do not like DSD format because being higher in frequency, the higher frquency of the DSD clock is more susceptible to noise and jitter.  But we are getting into technical area that beyond this discussion.

For historical perspective, back during the infancy of digital recording, the reason redbook format was recorded at such low data rate is because had it done in high resolution (like SACD or DSD), the disc would have been so large to store the extra data rate that it was not practical (because the digital storage capacity much lower in those days).  Panasonic actually wanted high resolution, but Sony on the redbook side won out because Sony was able to make the compact disc smaller and more portable.  

DSD recordings make up probably less than 0.1% of all music recordings out there, that’s why.

I personally have 3 DSD albums, and play only 1 regularly. There's no DSD streaming that I know of, possibly because DSD music takes a lot more data than the PCM counterparts.

Thanks for your input Jazzman, I guess that does make sense.

I hope more quality DSD Albums become available. 

I recently bought the album, Temptations on DSD and if I had any doubt in the capability of DSD, then this album restored it back. Sounds so good.

I can only imagine how it would sound on a system that is way above mine.

The vast majority of digital music out there is Redbook quality PCM.
High Res material above Redbook quality only make up a small sliver, and formats such as DSD and MQA make up an even smaller sliver of what is out there. That is why some manufacturers only do PCM, or choose not to support MQA.