I thought it might be the head gasket but wouldn't the coolant be black as opposed to reddish though?

It might very well be the Bar's Stop Leak gunk. I think the idea is, as the gritty particles get exposed to air via the leak, they solidify and stop the leak.

I am gonna drain the coolant a few times and see what happens.

I'm waiting for a warm day!

__________________
Ben
1987 190d 2.5Turbo