How much does a DAC do the more expensive it is?

The original owner took the depreciation hit.  The 2nd owner can likely sell the $11,000 DAC for about what he paid for it ($5000 hypothetically)- if he holds it for just a few years.  For example, I have owned two vintage ARC preamps, one for 13 years and one for 20 years.  I sold each preamp for more than I paid.  So my cost of ownership was negative, not accounting for inflation.  I enjoyed great hifi sound from my preamps with no depreciation.  Unfortunately, I am not always so lucky.

I have never owned one. But I have played extraordinary recordings on my more modest system, and they have also sounded extraordinary.

Exactly, and that is all that matters.

In searching for a new DAC recently I was impressed with GoldenSound's review especially on his "under the hood" analysis of the electronics. He also reviews the Denafrips Terminator Plus.

Holo Audio May Review - Part 1

Holo Audio May Review - Part 2

a DAC will depreciate much faster and steeper than an amp or preamp...lots of high quality amps and preamps will hold used price value after a few years of depreciation, not very often with a DAC...

In case you're getting the wrong idea, I don't firmly correlate money with quality. Never have, really, for audio components. Case in point; I've loaned out my Herron VTPH-2A phono stage to a friend and have substituted into my system my almost forgotten Schiit Mani. 

I mean, yes, there is a difference in presence and space, but that little sub-$200 solid state is absolutely incredible. 

If only price were a good guide. There are many DACs that will trounce your DAC, and some may cost less, I don't know about that end, but it certainly would be possible. The problem is that we have limited exposure and we don't all agree as to what we consider diminishing returns, not to mention what we precieve as sounding good. There are a lot of DACs that can better the Gungnir easily. The problem is that when someone recommends x, you don't know their taste in sound, the strengths and weaknesses of their system, etc. This renders their opinion as virtually useless to me. I have more often been disappointed in highly rated equipment than I have been pleased with it. It doesn't matter what magazine the review is in, though through the years I have found several reviewers who have high standards, and with whom I usually agree. Even if stereo shops abounded, paring this with that could negatively impact our impressions of a certain piece of equipment. This is a very difficult hobby to get to a point of contentment in.