This spell, which is seventh circle, needs a cut diamond to be cast if the caster didn't eschew.
Mineral diamond can go for about 10,000, so that makes this component ridiculously expensive compared to others.
In Lore it says that the handbook price is 500 gp, could it be that the original intention was to use diamond dust?
Cut diamond
Vendor Price: NOT FOR SALE
Handbook Price: 500gp
Stackable: Yes
Spell: Protection from Spells
My suggestion is to change the component to diamond dust.