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If you change yellow to silver, it gives you "colour silver," but if you look at the assumptions, it assumes silver is an element. Clearly it's not really getting the meaning of the sentence, and the fact that it's picking "yellow" is mostly coincidental, I think, as is also illustrated by your examples.

http://www.wolframalpha.com/input/?i=The+2nd+colour+in+blue,...

I wonder what its favorite colour is ;-)

Try it: http://www.wolframalpha.com/input/?i=what+is+your+favorite+c...

That's according to Python. Ask about the favorite color of Wolfram Alpha:

http://www.wolframalpha.com/input/?i=what+is+your+favorite+c...

Haha.