What are the best quality speakers for under $500?

Kopenhagen,
It is really going to depend on a lot of other factors what are going to be the best sub $500 speakers in your system and your room. The "best" speakers are likely to be very transparent and reveal the shortcommings of amps and other components.... something we don't want when we are on a budget. So depending on the components that you have, it will really depend. I did help a friend out with a modest receiver, and upgraded his speakers to Wharfedale Diamond 9.1 ($350) with very pleasing results.... brought his system to a new level without exposing the shortcomings of other components. I would also look at the Epos ELS3 and offerings from NHT, but these may be less forgiving than the Wharfedales.
Good Luck,

B&W 302s may be the best speaker ever manufactured for an original price of $299. I also like the Reynaud MKIIs, which sell used on Audiogon for around $500. These speakers are 90db efficient and musical.

I second the sound dynamics 300ti's.

Go used.

I third the Sound Dynamics 300ti'a.

My fave affordable speakers are a used pair of Nola Minis. THey are giant killers.

The great thing about both the above spealers is you never miss what isn't there, they're quite dynamic, they don't get congested and they are great all kinds of music, including large scale classical. They're resolving enough to let you into the recordings, but in no way etched or hard ot tipped up.

The Minis have a better mid range and more refined treble than the SDs, a bit more transparent and airy too. I love 'em but I could be happy with the 300ti's in a minute.

Used Epos M5s are nice speakers too.

I've had the Spica TC50s and 60s, great imaging and super on small ensembles and chamber music but not my choice for rock or large scale classical.

I am pretty sure that you can`t beat Polk Audio LSi15 for the prize. It is full range and will give you much better sound than many speakers in $2000-3000 prize range. Uses same ring radiator tweeter as $$$ Krell speakers. These usually cost more but you can find these in ebay at nearly $500.