I agree with the wire advice, and your dipping voltmeter is telling me the problem is your wiring, probably factory, is just too small for your increased current demands for the stereo.
A fact that a lot of folks don't realize is that with DC wiring, there can be a tremendous voltage drop in just a few feet of wire. The amount of voltage drop is a function of distance, required current, and the wire's AWG.
One concept that may be difficult to understand is that the wire may very well be sufficient to handle the current, but not sufficient to keep from having an excessive voltage drop.
Electron flow (the flow of electricity), is actually a mechanical process, wherein electrons flow from one atom to another. This causes friction. In layman's terms, using a larger AWG wire is sort of like reducing that friction. As friction increases, resistance increases, and the wire begins behaving as a series resistor in effect.
The confusing part then is that the wire may be way oversized in terms of current carrying capacity, but not at all oversized due to the resistance factor.
So, the advice of using the large AWG wire that is being suggested is due to the voltage drop, not the current requirements.
To put it into perspective, using williemon's figures of 50Amps of current, a 4AWG wire, marine grade with a 105 Degree Centigrade jacket, can actually handle 160Amps of current, far more than this expected 50Amp load. However, if you look at the voltage drop, assuming a 3% voltage drop between the battery and amp (0.36V assuming a nominal 12V supply), then at 10ft, the formula indicates you need a wire having 29,861 mils. One mil is a wire having a thickness of 0.001, so 29,861 mils falls between 4AWG and 6AWG.
So, a 4AWG wire, 20ft total round trip (+ and - leads), can handle 50Amps with no more than a 3% voltage drop, or a maximum of 160Amps (with an exceedingly significant voltage drop).
However, in williemon's example, he is putting a lot of emphasis on peak current - with all channels simultaneously at peak - which probably is not going to happen. In that case, you can probably use something less than 4AWG. How much less depends a lot on your type of music, its dynamic range, and the instantaneous power demands of the system.
The stereo system on my boat has 4x40Watt and 1x150Watt amplifiers (CES2006 RMS). The amps are only about 3ft from the DC distribution panel, and I have both wired with independant 12AWG wires. The circuit breaker at the distribution panel is a 20Amp breaker - powering both amps. By the way, most breakers trip at 125% or more of average - not peak current (fuses on the other hand are much faster acting).
I have no power issues at all, no voltage drops, no overheating of the wire, no flickering of lights; even the amplifiers don't get warm on their heat sinks.
But the main reason I can get away with the 12AWG wire is the amps are only 3ft from the power source. If the amps were, say 20ft away from the distribution panel, I'd have to use at least 8AWG just to maintain the low voltage drop on the wiring.
There are calculators on-line that can help you in determining the size of wire vs. voltage drop. One such calculator is at
www.genuinedealz.comI would caution about using a capacitor in a marine environment. A very large capacitor is typically used in an auto stereo environment to somewhat mimic a short-charge battery at the source of the amplifier. However, in a marine environment, with the requirement for ignition proof engine room components, the installation of a capacitor, even if it is outside of the engine room, could cause a spark on the battery when it is being serviced (removing battery wire), loose battery wire, or so on.