SM58s are fine for live, but the SM57 is the more commonly used studio mic. Whilst the SM58 has been used for some classic vocal tracks, most have been recorded on large diameter condenser mics, quite often from Neumann (U47, U67 or U87 models), or maybe an AKG C12. The Shure SM7 is a higher quality (and pricier) alternative to the SM58, and is often used by rock vocalists and seems to be the hip-hop/rap mic of choice. Other decent dynamic mics of note used a lot in studios are the Beyer M201 and Sennheiser MD421.

When it comes to condenser mics, we now have a lot wider choice of mic than there used to be, from very cheap Chinese-made models to the very expensive German and US makes. And most of those condenser mics are very good. There are some at the very bottom of the price range that really are too noisy or too peaky to use (and I'd include the often cited AT2020 in that, which sounds really nasty when heard in a good listening environment with good monitors). But once you get above the £100 price point in the UK, (not quite sure if it's quite the same point in Australia, around A$160?) things start to settle down and there are some very nice useable mics. The Rode range often gets pulled up in comparisons for being on the bright side (especially the NT1A), but they do have very good noise figures, which can be a real benefit when dealing with quiet sources. My first condenser was the original NT1 (which I gave to a friend) and I now have an original NT2 among my collection and I couldn't really fault them at all.

Yes, I'd like a real U47 or U87, but I've never really done enough recording to warrant the expenditure. I've generally sourced all my mics from eBay, so have kept expenditure reasonably low. One range of mics, once made by Groove Tubes (they were originally Alesis branded and after GT stopped making them they are obtainable in modified form by Stirling Audio in the US) certainly punch way above their weight and I know several pro-studios that use them a lot. I've got a couple of GT33s (FET SDCs), two GT55s (FET LDCs) and one GT67 (multi-pattern valve SDC). All of them are great mics. Their original sales price was reasonably high - the top-of-the-line GT67 was £1k, but the price came down over the years and when they were discontinued by GT, they were selling for a bit under half of their original price. I think my GT-67 cost me just under £200 (A$320) and the GT33s and 55s were between £40 and £60 each (A$65-A$100). So if you see one at a reasonable price, I suggest going for one. The FET models are very reliable and the valve models are also, apart from their power supply unit, which has a transformer inside which is normally the cause of failure, and which is no longer obtainable. You can get an equivalent replacement PSU from Sterling Audio - but you have to buy and ship it in from the US.

Some of those DIY valve mics are really good, and can get quite close to, but never exactly the same as, the originals they are based on. But then again, most of the originals are no longer in production, and the surviving models often now sound very different to each other as components have aged or been replaced during servicing. Some of the kits can be a bit problematic with hard to track down hums - normally caused by the lack of a working Faraday cage around the capsule as some parts (typically the mesh screens) are earthed via contact force alone, and a thin coat of paint or dirt can prevent a good contact. But sometimes you can spend a lot on a good DIY kit, but have it out-performed by a well made mic of a similar price.

And most engineers/producers would say that you still have to match the mic to the voice. Just because you do have a vintage U47, it doesn't mean that it will sound as good on a particular voice as an A$300 mic. It's never going to sound bad, but the much cheaper mic may bring out a certain quality in the vocal that lifts it above the U47 for that performance.

One particular area that looks like it's already worth looking into is mic modelling. My friends at Sound on Sound mag have recently been reviewing the Slate VMS (Virtual Microphone System), consisting of an LDC, mic pre-amp and a software modelling suite. http://slatedigital.com/virtual-microphone-system/

It currently models four classic high-end mics,(though I expect than number will increase) and the results are generally very close indeed to a test done with the original mics they were modelled on, generally within the limits of two identical mics having different sounds after some years have passed. The mic also has two outputs (one per capsule), so if you record both you also have the ability to change the mic's polar pattern in software after the take! And you can then swap between different mic models to see which sits best in the track. It's not 100% perfect, and the SoS review found a few areas where the performance could have been improved - but it's just small software changes which may have already been corrected. It's around £1k in the UK, but for that you get a decent quality SDC, a good, uncoloured, quiet preamp, plus the four mic models (plus probably more to come - it did start out with just two). The general feeling was that it is very good value for money and can get you results almost identical to those you'd have got that if you had to buy four equivalent mics.