Perhaps something like this?

etsy pencil rack

I would see if you could have racks made similar to this one. They could be put on shelves, or without the curve wall mounted.

https://www.etsy.com/listing/659660912/pen-turners-display-stand?ref=pla_similar_listing_top-6

^^^ terriks, that one would be wonderful, and the size shown is not expensive at all. Perhaps the craft person could custom make other lengths/sizes, potentially with flat rear for wall display... I do like the curved front - interesting. And this one is the nicest looking and fully shows off the items, IMHO.

Wow! I have seen pen collections, but not pencil collections! What a fun thing to collect, and fun ways to display. I’d almost want a vintage pencil cup or two, or three, to encourage picking them up and balancing them in the hand.

I like to use interesting vintage cups and mugs to hold my pens, pencils, etc. - small vases work too.

I like kitschy cute ceramics and MCM glassware - but it can literally be anything you fancy.

Perhaps a shadow box type of frame where they could be mounted on the background. Disadvantage is they wouldn't be accessible to pick up and handle.

I like the shadow box idea . On the wall, dust-free. You could just put the most unusual pencils in it.

My first thought was a pin cushion sort of display -- oops, maybe too similar to the representations of Covid-19!

check these out: Pencil collections