Dear ASSR:
Which mics currently available would you recommend for a small project studio on a limited budget? Hypothetically, if I have a $5000 budget to start my mic collection, which ones give you the optimal combination of maximum utility and quality? Which ones would you change if I could afford a $10,000 mic budget?

A lot depends on the type of work you're intending to do. If you plan on recording a full band/tracking session at any time (in particular, using acoustic drums) then that would substantially affect the range and number of mics you're going to need. If your work is principally one-at-a-time recording, however, then you could realistically afford to spend more on fewer 'higher quality' mics in order to give a wider choice.
$5000 should certainly be able to get you one or two tried and tested large capsule condenser mics, two small capsule condensers for acoustic instruments/piano etc., where you may want two identical signals for stereo recording, some everyday dynamics (as in Shure SM57/58s), and possibly some specialist ribbon mics, which are currently coming way down in price and are also 'in fashion.'
The question everyone faces is whether to spend a large part of your budget on a classic European vocal mic from Neumann, AKG etc., or whether to go for one of the far lower cost Chinese brands that seem to offer equivalent specs. You'll find advocates on both sides of this fence, unfortunately. A U87 isn't going to give you much change out of $3500 but if you've used and like this mic, and are predominantly recording vocals (plus electronic instruments/loops that won't need mics at all), then this is not a bad basket to put so many of your eggs into.
If your recording needs are spread wider, then this may only make sense if you can stretch to a $10k budget.
Sound On Sound magazine ran a very interesting article on choosing a vocal mic in the current issue. They tested a range of mics using a range of different singers/styles. They came up with some very surprising results - some where the least expensive mic was universally voted the best in a blind test.
Given any form of limited budget (that's to say almost everyone aside from John McBride at Blackbird studios in Nashville!) the best philosophy is to have some mics you can bank on, plus some that'll give you flexibility (multiple polar patterns, swappable capsules etc), and then maybe one 'treasure.'
ASSR's production company has just opened a new online store selling music production items and they're always happy to discuss a selection with you, based on the specifics of what you're recording. If you're in USA they're on 1-800-752-2780 and the url is www.keyfax.com.
Hope this gives you something to work on.
Thank you very much for your well-considered reply.
Given the expense of better quality microphones, I think my fear is one of making an expensive mistake - purchasing a microphone which, upon a little use and evaluation, doesn't deliver the hoped-for sound, or ends up sounding a little too bright or a little too dark.
Most of the online / printed reviews are pretty glowing for most mics, so it's tricky to sort this out. Or they phrase their commentary with "At this price point" or other value statements.
Could you share with us your thoughts on your favorite "go-to" mics for specific tracking applications when recording a rock band in the studio? The ones that we "can bank on", as mentioned above.
For the purposes of discussion, let's say the band has: electric guitar, acoustic guitar, bass, drums, keyboards, sax, and pedal steel, and a bass male lead vocalist - which is the make-up of my own group! (I assume you would handle the bass and keys via D.I. in most cases.)
Thank you very much!
Tom Fiala,
Orlando, Florida