I would stay away from any kind of regular untreated foam for long term storage. The stuff in camera and gun cases works but simple foam has a habit of attracting and retaining moisture. As Melvin stated keep the sheaths away. I put them in old (clean

) socks and store them in plastic bags.
I use pouches (partially opened as Melvin stated), knife rolls, Renn Wax, Sword oil from Japan (via Murray Carter) on high carbon and Damascus and Rem oil (moving parts if any) and try to keep the environment as constant as poss. That regime has done the trick for me over a long period of time. For long term storage of high carbon steels, I use the sword oil or Rig and wrap the blade in plastic wrap.
Keep in mind that it is best to make sure the knife is clean before applying any protective stuff. A chamois does the trick for that, but you need to make sure you keep the chamois clean from grit. Use it and keep it stored in a zip lock.
For older knives with celluoid handles. Keep them apart from your non celluloid knives. I have not had it happen, but experts have said that that stuff can break down and result in steel caustic fumes. I use Renn Wax on these (as well as all other handle material) and have not had an issue (yet), but I do not store these in my safe with the other stuff.
I like pouches from Wilkenson and the large rugs from Bill's Custom cases. When I dealt, I transported folders in one of Bill's 12 pack duffels. (Basically a well made canvas duffle that will hold up to 9 of his 12 packs.)
There are other methods just as effective, but these have evolved and worked for me.
Knife rolls worked for me, but under the condition that I did not leave them rolled up for a long time. I would keep some fresh silca packets in there too. I have not tried them for long term storage.