UPDATE 1-ETF Secs' U.S. platinum, palladium inflows jump

* ETF Securities' U.S. platinum group metals holdings surge

* New York platinum, palladium ETF launches lift spot prices

* Platinum group metals play on auto demand, says company

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By Jan Harvey

LONDON, Jan 25 (Reuters) - Holdings of ETF Securities' U.S.-based platinum exchange-traded fund (PPLTiv.P) rose 10 percent on Friday, while those of its U.S. palladium product (PALLiv.P) climbed by a third, the company said on Monday.

The inflows reflect sales made two or three days prior to the recorded date at which the metal is received by the custodian, ETF Securities added.

The platinum fund now now holds 164,874 ounces of metal, while the palladium product holds 279,956 ounces. ETFs issue securities backed by physical stocks of a given asset, giving the buyer exposure to the underlying price of the material.

The launch of the two products, the first of their kind in the United States, has been a major factor in palladium's 7 percent rise and platinum's 5 percent climb so far this year.

Both metals hit their highest since mid-2008 last week as investment demand surged, and traders worried the products would lead to a squeeze of available material in the market.

Investors' interest in the metals has been piqued by expectations for a recovery in car sales this year after a soft 2009. Over half of available platinum and palladium supply is consumed by carmakers for use in autocatalysts.

"These are the first physically-backed products listed in the United States, and there has been a huge amount of pent-up demand," said Nicholas Brooks, ETF Securities' head of research.

"A lot of investors look at platinum and palladium as an excellent medium- to long-term play on emerging market demand for automobiles," he added.

(Reporting by Jan Harvey; Editing by Amanda Cooper)