Were talking about the rear bonnet "FERRARI" correct? I'll have to look again but I thought I noticed that this was attached via double stick tape? my car is an '89 328.
I don't use wax polish around the badge. I avoid it in that small area completely, then use Zaino Grand Finale spray with a microfiber cloth. No mess, and brilliant shine inbetween lettering which blends evenly well with the waxed area.