GIF allows for any number of colors between 2 and 256. The fewer colors the less data and the smaller the graphic files. Not all software will let you set the bits per pixel for GIFs or the colors of the palette. For example, CorelDraw! 4 will export GIFs in 16 or 256 color format. However it uses a set palette. A gradient shading of reds will be reduced to the five or six reds available in the standard palette. Think of it as as lazy painter who doesn't like to mix colors to get it right. Whatever colors are available on the palette are all it will use.

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