DAC OR NO DAC???


I am a newbie here and just getting into hifi and I am sure this is a dumb question but if anyone can comment and help me out?

I am currently listening to a lot of youtube music videos(quality varies) and tidal from my hp laptop via hdmi connect to a marrantz 7704. the 7704 seems to be decoding the signal pretty well. I tried a audioquest dragonfly red and it gave me some interference or something. ( maybe I needed the jitterbug to go with it?) so I returned it and just using the hdmi. Happy with tidal also but really like the music videos. One question is hdmi sound quality not as good as I could get? Can a dac help from this source? a dac to try that uses an hdmi? or should I just forget hdmi? A dac to try for under 500 or should I just wait and spend more? Thanks


My startup system consists of bw 804 d3's ( I do see where people say they are a little bright but so far I am enjoying them:) Marantz 7704, McIntosh mc207, bw 805d3 and htm1d3 for movies, fathom 212 that I turn up for movies and back down for music, source as described above and audio technical at lp5 ( I know it is a cheaper one but wasn't sure how much vinyl I would listen to but I am impressed with the quality of the new vinyl and sound I am currently getting compared to digital) -room 13 x 15 no acoustic treatments yet




rwrightcpa
I agree with Bob in his recommendations above about the Ayre Codex (often available for $1200 used) and perhaps about the Schiit Gungnir.  I have had 5 DAC's priced under $1K and found no significant difference in their performance.  However, I got a used Ayre QB-9, retailing years ago for $2600, and OMG, I finally could see what DAC devotees were talking about.  It yields analogue-like sound!  I mostly stream Tidal Hifi and the addition of the Ayre has been amazing. I get impression that the Ayre Codex is as good or better than the QB-9.  The Schiit Yggy is universally praised and for good reasons, but costs over $2K.  

My opinion is that the starting price point for excellent performance in a DAC is about $2K.  As I said, my experience after trying a bunch of modestly-price DACs was that they failed to elicit the huge SQ improvement that I discovered when I got the Ayre QB-9.  My take is that "you gotta pay to play" insofar as DAC's are concerned.  All DACs function, but the pricier ones perform vastly better.  
I have been steaming for at least 15 years. The most important things are source, then speakers. You have good speakers already. I have a mytek Brooklyn DAC+.  Sounds great, and I wanted the pre amp abilities for watching movies in my 2.1. The best move I made was to get a streamer in order to by pass going through my Mac book air.  If I only needed a dac with out the pre amp I would get Schiit yygy 2. How ever keeping in mind with your budget the border patrol is a good place to start. 

I like Ike what bob, stiix, and Hartman had to say.
ok ok:) 

I think I am going to go with the yygy. That's seems to be the one everyone has been mentioning the most, It is backordered till 9-11. I just missed a used one that was gen5 but he sold it already for 1800 I believe. I think I will just buy new for only 600 more. It may a bit but will keep you posted. 


Thanks again
My experience from earlier this year: I've listened to a system that consisted of the B&W 802 D3's, The Bryston BP 26 pre-amp, Bryston 4B cubed amp, Bryston BDA 3 using high end HDMI cable fed from the oppo UDP-203.  then the DAC was removed from the setup.
Everything else was the same...I heard no discernible difference whatsoever. Now, I'm not saying S/PDIF or USB cable isn't going to make a difference - for they may.  But, after spending 3500 for the DAC and another 500-1000 for the cable...you'll have to be the judge as to whether your hard working dollars is worth the expense in the degree of difference you may (or may not) hear.
Also, I think how you're listening to the music matters too.  If you're critically listening to the music (studying the shyt out of it and not enjoying it but trying to hear the micro nuances) - or - merely relaxing with a glass of wine or favorite micro brew then (perhaps) those micro nuance changes will go completely unnoticed.
One last thought...any cable can start to sound good - after you've had it plugged in for countless hours (and happen to know the commercial drive behind the name) and price tag (IMHBAO)
Good luck.

I bet you would like the sound of the Denafrips Pontus ($1600 USD) as well as or better than the Yggdrasil and still have $800 in your pocket. 

Dave