At what point is an external D/A converter warranted or beneficial


Over the years and after multiple "upgrades" I've become disillusioned with digital audio reproduction. As my systems improved in quality/resolution, the digital audio quality has equally deteriorated to where most listening is now done in analog. This makes my CD collection of in excess of 1000 titles pretty much useless. My digital D/A conversion knowledge is pretty much limited to whatever is done by the internal D/A converter of the equipment. That being a Lexicon MC12B processor and Oppo BDP103. As my choices of ICs went from basics to high quality resolution improved with a marked decline in digital SQ. I'm at a point where any Redbook CD presents a harsh, edgy, shrilly, bright, name it what you want, upper frequency. Changing ICs back to basic cables attenuates this along with resolution of the music played. You might say I'm at a loss. Do I live with less resolution or the digital limitations. I do not have this issue playing analog media. Would an external D/A converter be beneficial or a waste of money? 
Systems are: B&W 803D2 and surrounds,  Lexicon MC12B, Oppo BDP 103, AQ Columbia ICs XLR & RCA,  AQ Digital ICs,  Tara Labs speaker cables,  Rogue Pharaoh, VPI Prime . Analog front end shares the L/R front speaker and input from the Oppo. 
Is there such a thing as an external D/A converter for a H/T setup as the Lexicon processor is the oldest piece in the chain with most likely the weakest D/A converter. But how would that connect to avoid the internal processing.
Any suggestions or recommendations?

gillatgh
Hi OP,
You are describing the sound of digital from yeah, about when the MC12 was created, especially with Redbook.


DACs over the last 10 years are far better and, especially, better with Redbook. Older DACs tended to only sound better as the sampling rate increased.


I'm not sure how well the MC12 does analog, but it should have an analog bypass or analog inputs which bypass all the processing done inside.


If you want to hear how good DACs are today, maybe try a Mytek with 30 day return policy? They have built in volume controls and can be attached directly to your amps.


If you have the chance to audition in person, try listening with headphones. I think you'll be amazed how some of the affordable DACs sound.
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Agree with Elizabeth on if the OP hasn’t touched the AC, that might be a wise place to start. I was questioning if my CDP/DAC was becoming my weaker link as after the addition of a streamer I am listening to my system more than ever or at least to when I was a really young audiophile in the 80’s.

Recently I changed out my receptacles which I have dedicated circuits and my system really started to open up so I started playing with power conditioners and etc. which I purchased a couple with good results and that’s where that ended.

Next I started reading a lot on newer DAC’s and no doubt there’s better than what I have for reasonable money but recently visiting one of my local shops they offered I try at home a PS Audio P5 they took in on trade so I did. Well, to wrap this up I was floored how the P5 sounds or my system sounds and now and I’m in no rush to buy a DAC now.

I’ll probably drag a DAC home eventually but sure glad I did this purchase first. Preamp, CDP/DAC and Streamer only on the P5.
@gillatgh  OP, If you are interested in hearing an all digital system, for comparative reasons, feel free to reach out via PM. I live close to you.
The damage has already been done by the time the signal gets to the DAC. The problems all occur in the nanosecond period of time it takes the laser to read the data. The system doesn’t recover no matter what you do downstream. Sorry to burst anyone’s bubble.