86 BMW started missing on #1, plug oily

Just the other day I was driving my kids to school and suddenly my 86 535i started running rough. Ends up that #1 cyl. is the culprit. When I take the plug out, it's always oily. I'm guessing it's the Head Gasket or valve seal? Am I right? If so, who much is one for this car? Is it ready for the Junk Yard? It has over 240,000 miles on it. It's been fairly reliable until now.

Get a leakdown test done on it, that will tell you what the problem is exactly.

As for the junkyard, well do you like the car or not? If you don't mind taking a weekend and doing some repairs yourself you could make the thing last quite awhile and keep driving it if you like it.

I don't have the leak down test equipment. I have the old-fashioned compression tester. It read 130+p.s.i. But I can't do a wet and dry test because it's so oily already. What would cause so much oil so fast?

Someone told me it could be the valve seal on the #1 cylinder. Does this sound right? I have 130+ P.S.I. on that cylinder, but of course, with so much oil in the cylinder, it's like doing a wet test. I do not have access to a leak down tester. Registration is due next month, and I need to know what I'm doing with this car. I was just hoping someone has had this problem before and knows, most likely, what it is. I've read about head gaskets being around $1,000, so I prefer to know what possibilities I'm looking for before tearing the engine apart.