Cable Costs Relative to System


Since making a spread sheet with my audio system prices, I have been thinking(shocked) about my total investment in cables. My total system retails at $67,000 (Digital and analog front ends included). I purchased all of it here on Audiogon so my investment is about 50%. Of that I have about 10% invested in interconnects and cables and another 10% in Power Cables (Shunyata Hydra included). That's $13,000 worth of wire. I'm starting to question whether it might be more effective to put some of this budget into acitve components. It would take forever to listen to all possible combinations, but would like to hear others experiences with relatively high end systems and cable selection. It would seem to me that the point of diminishing returns would be reached sooner with cables than with speakers and amps. Do most of you follow the 10% "rule" for cabling? How do PCs fit into this rule? Are there any super bargain cables capable of keeping up with highly resolving electronics?
metaphysics
I admit that the hyperexpensive cable can make a positive difference in certain situations. But, I want to stand up and say that to think these products are better in the vast majority of circumstances is asinine. To think so is to admit that to have bought in to the hype. The hype is the reason that the "free market" does not weed out these companies. And to look at things objectively, it is not only the sole reason for not only their existence, but the fact that these companies have flourished. Now becoming firmly entrenched. In fact, the business is so plentiful and lucrative, new cable companies crop up at an incredible rate. There is no good explanation for the cost of most of these products, with the exception of things like greed. I used to be a chemist, developing thick film materials for the high tech electronics industry(conductors, resistors, dielectrics, conformal coatings, etc.). Some of the companies we sold to are in the highest echelon of high end audio. We won awards every day from companies with household names that used our products to make their products successful. The price structure for Product A(a low cost silver-palladium based resistor line - 0.1/1.0/10.0 Ohm)was that Asian companies bought it for $0.40/gram, American/European companies were charged $4.00/gram, and the US government/military/US companies(yes, the same who bought it for commercial usage)using it in military applications paid $40.00/gram. Of course, each carried a different product number, complete with different product literature/specs. But, the material was all culled from the same production lots. The whole thing was obscene. The government knew, and didn't care. They thought it was funny, even. As a US taxpayer, you best believe I let them know about it. They laughed it off; as if I was telling them the sky was blue. The fact is that companies charge the going rate. Selling for less often loses you orders. Buyers often feel your product is inadequate. I would love to hear a good explanation regarding the electrical/material science/R&D/manufacturing reasons of why a copper interconnect would retail for over $500. And as Arthur Salvatore notes on his website, these cable companies do not even manufacture their products. They buy them for cents on the hundreds of dollars, and pass the product along to us. While I do not pretend that my sub $500 cable list will beat every cable, in every system, in every circumstance, for every audiophile, I submit that this list will compete with ANYTHING sold in this industry. This list should not be thought of as containing great budget alternatives to the great cables, but GREAT CABLES on their own merit. Equal to their more expensive brethren. My list today(products I have heard - I do hope others chime in with their nominations) includes AudioQuest's old line(I saw 1m Lapis go for $112.50 here on auction Wednesday night), Analysis Plus, Coincident, Goertz, HomeGrown Audio, Kimber Select(copper) and the KimberKable line, Musical Fidelity's Nu Vista line, Red Rose Music, and Silver Audio. And no my system does not retail for $50K. But I would also assert that I can build a $5K system(mine does cost much more than that) that is more satisfying than many a $50K system. That statement in itself will also raise the indignation of many.
People who are willing and able to assemble audio systems worth five digits can spend whatever they want on wires. What always worries me is that there's some young guy lurking out there who reads that he should be devoting 20% of his budget to wire, and his budget is only $1500. Nobody like that should be spending $300 on wire. $30 is more like it.
We are lucky to have a few new companies popping up that offer outstanding cables, both signal and ac, at fair prices. Yes, we all lust after Valhalla and G5, but it's possible to come close, real close, without the second mortgage type of expenditure. With this in mind, I believe no more than 10% of system value is about right for cable investment. I have heard cables make the difference between good sound and outstanding sound, so I think them very important, but I do feel many cables are ridiculously priced. My system value at retail prices is about 60K. My cable investment including powercords comes in at just under 5K. Sonically, IMO, sound quality is exceptional.
I am guilty in this thread but I will say this once again, "a cables performance is system centric". Some cables sound better in different set ups. I recently auditioned about everything under the sun in my 2 channel system and settled on AudioQuest Anaconda for my interconnects and AudioQuest Volcano for my speaker wires. I also am a huge believer in the Shunyata Power Cords as I have witnessed a huge difference in sonic performance. (in my system) Anyway, my system is in the $12K range and I have about $4K on top of that in cables. Not too nuts but still a decent investment. Crazy, but that's how it goes..

KiD