knowing that you were not redeemed with perishable things like silver or gold from your futile way of life inherited from your forefathers, but with precious blood, as of a lamb unblemished and spotless, the blood of Christ.” (1 Peter 1:18–19, NASB95)

The word translated “redeemed” here means: “to release or set free, with the implied analogy to the process of freeing a slave” [Louw-Nida].  We were slaves [to sin] but that is only the past, what we were, it is not what we are any more.  What we are now is people who have been set free.  How were we set free?  “With precious blood.”

How else to describe the object that set us free than with the term “precious”? This verse is speaking of our eternal destiny which has been transformed from death to life by the means of “precious blood.” It is speaking about a change from slavery to freedom “with precious blood.” It is precious because it is absolutely free: we have been saved by grace through faith. It is precious because we have now been adopted by God! and no one can stand before God and accuse his own children. It is precious because nothing else in all of the universe could have done what Jesus’ blood did do: it set us free from our sins, it reconciled us to God, it gave us the help we need and it gave God the glory that he deserves. Yes, precious is the only appropriate word here.