The two adjectives that begin this verse could also be verbs. The form is the second person in the passive or middle voice, having the sense of "you are foolish and blind" or "you make yourself foolish and blind." This is a little more interesting than the name-calling that the Bible translates this as.
The word translated as "sanctify" and "make holy" has the sense of "purifying" something, setting it apart for the worship of the Divine. Purification rituals always involved some form of cleansing, with water or, on an altar, with fire. There is an amusing dissonance here because gold is considered the only "noble" metal because it doesn't chemically react with other elements, tarnishing like silver or bronze. However, in a religious sense, it is still "dirty" because it is in common use, not set apart for the Divine.