Getting close-up shots is partly a camera trick, and partly camera smarts.
Every camera has a minimum focusing distance. Digital cameras have a shorter distance than their manual counterparts. So, usually, you can get pretty close.
So why is it so hard to take good close-ups, then?
Light and Camera Steadiness.
You need loads of indirect light - the more the better. Shining a light through a white cloth is a good start, but not enough. You need reflected light. Set up some lamps to bounce light off of a white surface behind and next to your "photo area". That's how the great ones get that "glow" in their pictures.
To take good knife pics - you must have a tripod, or photograph outdoors. (or have a fast lens...but we're talking point-n-shoot still). It is a necessity, not a luxury. If you want better pics, buy/borrow/make/whatever a tripod.
There are lots of other tricks, but those are the most basic that when properly understood, will get you to within 80% as good as the best.
Your pic looks like a good start. Good camera too.
Let me pick at it a bit, ok?
The clutter at the top distracts from the knife. Also, is the pic about the turtle or the knife? Make sure you understand your subject. Just like a term paper, a good photo needs a theme and a topic.
Yes, the orange is obnoxious...but I've shot hundreds of photos on a nasty yellow background - mostly because I had to use what I could and fast. No problem with that. I don't mind it.
Knives like to photographed either straight on, or at a funky angle. But not "almost straight on"....or "slightly skewed". Lots of people make this mistake. It's hard to understand the design of the knife when it's just barely off.
I built a cheap light box out of pvc piping and white spandex. Cheap and easy. Put whatever background you want - just don't use bright whites or dark colors. Find more neutral tones.
Color matching - this can be very tricky. The jury's still out on this one. Match or Contrast? I think it's more of a matter of taste (subjective) than science (objective).
Yvsa - I lost those links when BFC upgraded a while back and imposed the character limit on sig lines.

I'm too lazy to look them up again.....sorry.
Do a search on "photo tutorial" and you'll find it.
Also, do a search on "santoku" to see some of my recent pics with my simple light box.