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I am sure this has come up before, what process happens here where 5 POUNDS of silver become one pint of Holy water???? Does each pint now weigh 5 pounds??
It costs 25 gp of silver to make something you can buy for 25 gp??
Do you get a flask for free with the silver or something? Is there a government rebate at work here? I am a free trader, I really don't like subsidies. What is next, paying the clerics to just pour there stuff on the ground?
I've wondered this myself recently. It makes very little sense...
The clerics do the labour for free, on the basis that presumably holy water is going to used for something useful. As for the flask (nominally 3 cp), I guess it's a rounding error. You can pay 25.03 gp if you really want to do the accounting.
After all, a galley costs 30000 gp. Really? Exactly 30000? Not 29672.43 gp plus sales tax?
Material components are totally destroyed during the casting. The vials don't weigh 5 pounds - the 5 pounds of silver cease to exist.
Material (M): A material component consists of one or more physical substances or objects that are annihilated by the spell energies in the casting process. Unless a cost is given for a material component, the cost is negligible. Don't bother to keep track of material components with negligible cost. Assume you have all you need as long as you have your spell component pouch.
AS for it selling for the same cost as it takes to make, thats covered in the description:
Temples to good deities sell holy water at cost (making no profit). Holy water is made using the bless water spell.