I'll add my tuppenceworth to the good advice already posted. I'd
consider a modest spend on a bigger hard drive and FLAC encoding to be
a wiser investment than $1000 on a DAC, particularly if buying the DAC
means sticking with lossy compression. It's entirely possible that
adding a $1000 DAC might just reveal the shortcomings of your lossy
files. Moving to FLAC will ensure that your source files are the best
quality possible, you have a lossless archive from which you can
transcode to other formats and you have a good source on which to base
future upgrades if you so wish.

It's also entirely possible that a $1000 DAC may not make a significant
difference to your ears. If you are happy with the sound of your system
as it stands and do not have £1000 then do not listen to a £1000 DAC as
it may just lead to dissatisfaction with a system you are currently
happy with. If you are happy with your current system and do have a
spare £1000 then audition some high end DACs. If it elevates your music
to a new level, then you can decide to buy. If you don't notice much
difference, then you've saved $1000 and you have a music system you can
go on enjoying.

Trust your ears.


-- 
Fifer
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