Opinions on what to upgrade first; speakers or DAC

This has been a hot topic of debate since the 70s. My feeling is that you should upgrade the weakest link first, which is usually the speakers. Some argue that information lost at the source can never be recovered, so start at the source. I disagree, because information lost at the speaker is still information lost. The losses incurred from a mediocre pair of speakers (especially in bass and resolution) are usually far higher than the information lost in a mediocre CD player. However, KEF made some very nice speakers, and if you're happy with them, I'd go for a nice Sony ES cd player. Dirt cheap used, and very nice sounding.

I must agree with Thedautch. Source is extremely important for a quality sound. You could have megabucks invested in amplification and speakers with a mediocre CD player, and all you would get is the ultimate ability to hear how mediocre the CD player really was. Within their limitations, speakers can only reproduce what is fed into them. I proved this to myself years ago when I had about $15,000 in electronics driving a pair of $300 speakers temporarily. It actually sounded surprisingly good. Now I do agree, a system can only be as good as the weakest link, but a poor quality source cannot be improved by any amp or speaker.

The analog audio out from the Pioneer is probably a very inexpensive circuit, since the player is designed for video. I would try a digital audio out to the B&K to use its DAC and analog circuits. If you do notice an improvement, then an outboard DAC would be better still, or just add a very nice CD player.

I will take great speakers and an adequate source over a great source and only adequate speakers any day. Speakers first!

The upgrade the speakers, then the DAC.

I upgraded my speakers last. I wish I would have upgraded them first so I could tell how good or bad my current system sounded.

speakers would give you a better upgrade for the same money.