Upgrade Amp or Speaker for 2 channel?

What are you looking to accomplish? What area is your current system lacking with regards to your satisfaction? What is wrong with your system? What area do you want to obtain an improvement in and what is the improvement you are looking for?

If there isn't anything wrong with it, why upgrade anything?

I could easily recommend components to replace everything you have, that are better than what you have (to me at least). But unless you feel something is wrong, I wouldn't get on that merry go-round.

Think about the past 8 years (age of your equipment), what areas of equipment have seen real and noticeable improvements in terms of sound quality? Personally, at this level of equipment, my opinion is the digital front end. There have been some speaker and amp improvements, but much less so than the front end items.

But before deciding anything, I would think about what is lacking in your system so that you can better determine what you want to achieve by buying new stuff.

Let me preface my comments with a note to clarify that my knowledge and experience is fairly limited in the audiophile world. Having said that...

A review of some of your systems components made me think that unless there is something specifically wrong (i.e. to your ears) with your Paradigm speakers they should provide an excellent system to built a system around.

The have a similar value to my Focal 836v speakers. Having heard my speakers connected to amps ranging from Integra receivers to equipment that of a crazy price by comparison, I would anticipate that your speakers may have something beyond what you're hearing with your current amplification. Having said that, I know nothing about the Anthem brand so they may be significantly better than the advertised retail prices imply. I've been amazed at the difference that truly high end amplification can make with very affordable speakers.

Also, based on my experience I would think that your current Arcam CD player is someone in line with the rest of your system and wouldn't be something that I would immediately consider upgrading, but again I have no specific experience with the unit. The online reviews appear to be solid.

I won't even try to comment on your other components as I know that I have nothing of value to provide.

Overall, I think your system should equal or exceed my system and I'd expect it to sound great. In my opinion, you're getting close to the level of investment were it takes a significant investment to yield a significant improvement.

Thanks everyone for your candid responses,much appreciated.

I guess the pure analogue sound from my second audio system based on a high end "vintage" turntable has influenced my expectations of digital sound.

Anyway I'll try the DAC magic which can easily be returned .

Gabe

Your speakers would be the least of my worries . DAC first , Amp next .

You were all correct-a new DAC has defintely improved the sound.More separation,tighter bass-pleasing to my ear.

I wish I could have afforded a better Dac than the so called "magic" one as I prefer to support products made in North America.