Peter was speaking here about the church of Jesus Christ being a select group of people. His reference to peculiarity relates to being different from what is normal or expected. The word can even be interpreted to mean strange. Are you ready to be called strange for doing the things of God? This verse refers to us being chosen by God and being from a royal lineage. The word royal refers to people of royal blood or status such as heads of states and diplomats. We are called a holy nation because we have been sanctified by the blood of Jesus Christ.
We have been set apart to show to the world the excellencies or the wonderful works of Jesus Christ who called us out of darkness into the light of God. Moses spoke to the children of Israel about the blessings of obedience. One of the blessings is that God will make us the head and not the tail, above and not beneath, once we obey his commandments (Deuteronomy 28:13). The amplified version translates this verse to mean that we will be the leaders and not the followers. Being above means to be of significance and not the person that others look down on.
Why does God want us to lead and not follow? For the establishment of the kingdom of God on this earth. If he that is in us is greater than he that is in the world, then why would we be beneath others? This does not mean that we do not submit to authority that is placed over us. What it means is that our aspirations within the marketplace, where we have been placed among those who do not know God, should be to lead. This desire to lead is not for our own self gratification. The main aim is so that we can lead people to God and establish his kingdom.
I pray that you will become the person of influence who God has called you to be. I pray that you will learn to see yourself in the way that God sees you. I pray that you will lead in all areas of the marketplace where God has placed you. I pray that God will ascribe to you the wealth and influence to establish the kingdom of God and lead people to Christ. “You are the light of the world. A city set on a hill cannot be hidden” (Matthew 5:14).