The outlook for palladium is improving and, in the event that the bulls can remain in control, it could very well end up being one of the top precious metals to watch in the months ahead. Nevertheless, investors should avoid becoming overzealous with products like PALL. As I mentioned above, palladium is attractive during improving market conditions, but it tends to be susceptible to more-pronounced fluctuations over time. Those who dive headfirst into a bullion-backed product like PALL may leave themselves vulnerable to unwanted risks. Rather than a core portfolio holding, a fund like PALL is best suited as a small tactical position that allows an investor to bet on short-term bursts of strength. It is crucial to avoid falling in love with palladium; doing so may result in unnecessary headaches.