The theme of these two verses of G-d’s expressions of endearment is that the Jewish people are inherently transcendent from the parameters of this world and are utterly one with G-d. The parable of being G-d’s “treasure” illustrates this. The king has treasure that he uses in the service of his kingdom, to build the country, the economy, the army, But he also has private treasures that serve no other purpose than delighting himself. They are not a means to an end, to entertain, impress, or create. They are for him alone.
The Jewish people, this verse suggests, are not a means to an end. They are G-d’s private treasure which exists for G-d alone.
The second verse makes clear that even when the Jewish people “descend” to become part of this world, they still maintain their transcendent identity and remain aloof from the materiality of the world. The “holiness” of the second verse refers to this quality, that even while we partake of the material world in a similar way to other people, we bring a spiritual intention to our physical actions, making them holy, set apart, and sacred from the rest of the world.
