“For thou art a holy people unto the L-RD thy G-d, and the L-RD hath chosen thee to be His own treasure out of all the peoples that are upon the face of the earth.”
– Deuteronomy 14:2, JPS 1917 Tanach
The children of Israel are an am segulah – a treasured people – unto the L-RD. As a people, we are still His treasure, that He values “out of all the peoples that are upon the face of the earth.” In the words of the Targum, “a people more beloved than all the peoples who are upon the face of the earth” (Targum Jonathan; sefaria.org). Within the overall context of the passage, wherein this verse is found, this is the reason given for the children of Israel not to disfigure yourselves as is the custom of the nations to do when mourning. Additionally, as follows in the passage, also, not to eat anything considered to be an abomination.
This is the basis of holiness, whereas the Hebrew word translated as “holy” is kadosh, having the basic meaning of “to be separate,” as in separated unto the L-RD, or separate from the nations. According to Rashi, one reason for this spiritual status is because of the merit of our forefathers, Abraham, Isaac, and Jacob. Moreover, it is the children of Israel that H’Shem appeared to at Mt. Sinai; and, He gave us the Torah, when He made an eternal covenant with us. The eternal nature of this covenant is expressed as follows:
“Thus saith the L-RD, Who giveth the sun for a light by day, and the ordinances of the moon and of the stars for a light by night, who stirreth up the sea, that waves thereof roar, the L-RD of hosts is His name: If these ordinances depart from before Me, saith the L-RD, then the seed of Israel shall cease from being a nation before Me for ever. Thus saith the L-RD: If heaven above can be measured, and the foundations of the earth searched out beneath, then will I also cast off all the seed of Israel for all that they have done, saith the L-RD.” – Jeremiah 31:35-37, JPS
In other words, our relationship with H’Shem is as sure as the heights of heaven and the foundation of the earth; by signifying our bond to H’Shem by way of this comparison, it is made clear to us that we are truly a treasured people unto the L-RD, despite all of our transgressions against Him. Even so, we are called to turn our hearts to Him, through sincere teshuvah (repentance), a heartfelt confession of our sins, with a commitment not to repeat them; rather, that our lives may be changed for the good.
The Tree of Life 