Pioneer DV600 audio with coaxial audio cable?

I have connected my Onkyo 606 to my Pioneer DV600 DVD player with a single HDMI cable for audio and video. CD music output is great, but somebody advised me to go in for a coaxial audio cable for CD music. The cable will cost me Rs 1050. Should I go in for it? The cost is OK provided there is a perceptible difference in the music quality. Further, will coaxial support SACD and DVD audio recorded in 5.1 format?

LPCM is the method used for encoding multichannel music that is recorded in DVD-A, and SACD.

Due to copy-protection and bandwidth issues, LPCM is sent from DVD Player to the AVR either through HDMI or through multi channel analogue connections. Digital coaxial and digital optical CANNOT carry LPCM data.

HDMI connection is the best for both video and digital audio. Optical or coaxial will not improve the sound.

Keep the following in mind.

1. For DTS, Dolby Digital and all the standard digital audio encoding that goes with movies, the order of connection is HDMI, Optical Digital, Optical Coaxial, multi audio analogue through RCA cables.

2. FOR LPCM or music that is there in DVD-A or SACD, the order of connection is HDMI followed by multi channel audio connections.

3. When both the DVD Player and the AVR have DAC, you have to decide which output you like better. For example, when you connect using an HDMI cable, the DAC is being done by your AVR.

The other method is to allow the DVD Player to do the DAC, and use the AVR for just amplification.

You Pioneer DV-600 also has 5.1-Channel Audio Output. If you look at the back there will be 6 RCA jacks clubbed together. You have to use either a multichannel analogue audio cable, or six individual RCA cables. Connect the jacks from the DVD Player to the corresponding jack in the AVR - L goes to L, R goes to R, Centre goes to Centre and so on.

Once you have these cables in place, and an HDMI connection, switch between the two connecting type while using the same DVD/SACD and decide which combination you like best. If you feel, the AVR's DAC is better, stick to HDMI. If you feel the DVD player's DAC is better, use the HDMI for video, and use the 5.1 channel audio of the DVD Player for all sound.

Cheers

Thanks Venkat for your professional advice. I must appreciate the clarity of your communication.
Just one clarification- For normal CD recordings in stereo, would you advice coaxial audio cable over HDMI? I think the answer is no, reading from your message, but just to reclarify.
By the way, where can you procure SACD's in India? What is the cost?
Thanks,
Ajit.