Get a new CD player or external DAC?


Currently my digital sources are Cambridge Audio 540C V2 and Squeezebox (SB3) connected to Krell KAV-400xi with Sonus Faber Concertino Domus speakers.

I would like to upgrade my digital source, i.e. CA 540C V2, something puzzle me whether should i get a new CD player or external DAC with budget of USD 1,500?

I wish to get advise from you and your recommendation either CD player or external DAC.

Advantage of external DAC will be i can connect my the other digital source, i.e. SB3.

Thanks in advance.
auronthas
I'm having pretty good luck with Cambridge 840c. Using it as both CDP and DAC for xm, at a cost of $950 on agon. However if your CDP is in good shape I would think $1500 would get you a better sounding stand alone DAC(used).
Do you listen to the SB or CD more? If you listen to the SB a lot, then I think getting a DAC would be a more versatile choice. If you like your cambridge gear, then you could get their new DAC (the magic I think it's called?) from Audio Advisor or another dealer and evaluate it, that way if you don't love it you can return it. I have a Bel Canto DAC 3 and love it, but if you're budget is around 1500 there are a lot of choices, including the New DAC from Bryston, the Benchmark, PS Audio, etc.
A great standalone DAC, and more musical to my ear than the Benchmark, is the Apogee Mini-DAC. However you can't get it new with USB any more, you have to go FireWire. If you want USB you have to find it used.

One more thing: the quality of your transport and cable is very important. If you get a DAC worth $1500, you will need a good digital cable (at least a VH Audio cryo Pulsar 1.5m long) and then, your Cambridge player will show what made it an entry-level buy. I wouldn't count on being happy with that combination for long.

If you decide to upgrade your CD player, the best one I know at your price (for a new unit) is the JAS Audio Musik 1.2.