How do you determine how much to spend on speakers

Use the same formula that DeBeers uses (but wait, there's more than one!):

http://minuk.vox.com/library/posts/tags/debeers/

http://www.dashes.com/anil/2006/12/01/blood_diamonds

I spent $1600 on speakers (Paradigm Studio 60 v.3) , $500 on an integrated amp (Marantz PM7200) and $1000 on my SACD player (also Marantz-SA8260). Three hundred or so on cables and it worked out well for me. The amp is great for the price , but has been discontinued (as well as the SACD). They show up used here and fleabay. I don't know if you can set a "percentage" value with this question. Audition as many combos as you can with a total cost under your budget and pick the one you like best!

No more than $1000.... DCM TFE200's!

I'm with Uraniumcommitte's 1/2 to 2/3 of total component spend, as a rough rule of thumb for speakers/sub (excluding room treatments and very small rooms). Distortion figures for speakers often make them the weakest link in the chain.

I am in general agreement with Shadorne but there are some special cases. One that I am familiar with is Maggies, where a pair of MG1.6, for example, fit well with electronics costing four or five times as much (and that is not including vinyl playback which would run it up to at least ten times).
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